Columbia Sportswear 2010 Annual Report Download - page 65

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
uncertain tax positions. The Company had $3,935,000 and $3,155,000 of accrued interest and penalties related to
uncertain tax positions at December 31, 2010 and 2009, respectively.
NOTE 11—OTHER LONG-TERM LIABILITIES
Other long-term liabilities consisted of the following (in thousands):
December 31,
2010 2009
Straight-line and deferred rent liabilities .................................. $16,296 $13,497
Asset retirement obligations ........................................... 1,122 721
Deferred compensation plan liability .................................... 1,670 826
Other ............................................................. 2,368 —
$21,456 $15,044
NOTE 12—RETIREMENT SAVINGS PLANS
401(k) Profit-Sharing Plan
The Company has a 401(k) profit-sharing plan, which covers substantially all U.S. employees. Participation
begins the first of the quarter following completion of thirty days of service. The Company may elect to make
discretionary matching and/or non-matching contributions. All Company contributions to the plan as determined
by the Board of Directors totaled $4,443,000, $2,610,000 and $3,118,000 for the years ended December 31,
2010, 2009 and 2008, respectively.
Deferred Compensation Plan
The Company sponsors a nonqualified retirement savings plan for certain senior management employees
whose contributions to the tax qualified 401(k) plan would be limited by provisions of the Internal Revenue
Code. This plan allows participants to defer receipt of a portion of their salary and incentive compensation and to
receive matching contributions for a portion of the deferred amounts. Company contributions to the plan totaled
$155,000 and $108,000 for the years ended December 31, 2010 and 2009, respectively. Participants earn a return
on their deferred compensation based on investment earnings of participant-selected mutual funds. Changes in
the market value of the participants’ investment selections are recorded as an adjustment to deferred
compensation liabilities, with an offset to compensation expense. Deferred compensation, including accumulated
earnings on the participant-directed investment selections, is distributable in cash at participant-specified dates or
upon retirement, death, disability or termination of employment. At December 31, 2010 and 2009, the liability to
participants under this plan was $1,670,000 and $826,000, respectively, and was recorded in other long-term
liabilities. The current portion of the participant liability at December 31, 2010 and 2009 was not material.
The Company has purchased specific mutual funds in the same amounts as the participant-directed
investment selections underlying the deferred compensation liabilities. These investment securities and earnings
thereon, held in an irrevocable trust, are intended to provide a source of funds to meet the deferred compensation
obligations, subject to claims of creditors in the event of the Company’s insolvency. The mutual funds are
recorded at fair value in intangibles and other non-current assets. At December 31, 2010 and 2009, the fair value
of the mutual fund investments was $1,670,000 and $826,000, respectively. Realized and unrealized gains and
losses on the mutual fund investments are offset against gains and losses resulting from changes in corresponding
deferred compensation liabilities to participants.
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