Columbia Sportswear 2010 Annual Report Download - page 71

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 16—EARNINGS PER SHARE
Earnings per Share (“EPS”),is presented on both a basic and diluted basis. Basic EPS is based on the
weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could
occur if outstanding securities or other contracts to issue common stock were exercised or converted into
common stock. For the calculation of diluted EPS, the basic weighted average number of shares is increased by
the dilutive effect of stock options and restricted stock units determined using the treasury stock method.
A reconciliation of the common shares used in the denominator for computing basic and diluted EPS is as
follows (in thousands, except per share amounts):
Year Ended December 31,
2010 2009 2008
Weighted average common shares outstanding, used in computing basic earnings
per share ........................................................ 33,725 33,846 34,610
Effect of dilutive stock options and restricted stock units .................... 367 135 101
Weighted-average common shares outstanding, used in computing diluted
earnings per share ................................................. 34,092 33,981 34,711
Earnings per share of common stock:
Basic ......................................................... $ 2.28 $ 1.98 $ 2.75
Diluted ....................................................... 2.26 1.97 2.74
Stock options and service-based restricted stock units representing 480,707, 1,562,064 and 1,410,849 shares
of common stock for the years ended December 31, 2010, 2009 and 2008, respectively, were outstanding but
were excluded in the computation of diluted EPS because their effect would be anti-dilutive as a result of
applying the treasury stock method. In addition, performance-based restricted stock units representing 43,323,
44,043 and 41,799 shares for the years ended December 31, 2010, 2009 and 2008, respectively, were outstanding
but were excluded from the computation of diluted EPS because these shares were subject to performance
conditions that had not been met.
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