Columbia Sportswear 2011 Annual Report Download - page 70

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
in some instances, on individual performance and/or Company performance. For the majority of restricted stock
units granted, the number of shares issued on the date the restricted stock units vest is net of the minimum
statutory withholding requirements that the Company pays in cash to the appropriate taxing authorities on behalf
of its employees. For the years ended December 31, 2011, 2010 and 2009, the Company withheld 48,059, 18,721
and 19,819 shares, respectively, to satisfy $2,974,000, $853,000 and $624,000 of employees’ tax obligations,
respectively.
The fair value of service-based and performance-based restricted stock units is discounted by the present
value of the estimated future stream of dividends over the vesting period using the Black-Scholes model. The
relevant inputs and assumptions used in the Black-Scholes model to compute the discount are the vesting period,
expected annual dividend yield and closing price of the Company’s common stock on the date of grant.
The following table presents the weighted average assumptions for the years ended December 31:
2011 2010 2009
Vesting period ....................................... 3.96 years 3.75 years 3.82 years
Expected dividend yield ............................... 1.33% 1.56% 2.19%
Estimated average fair value per restricted stock unit granted . . $ 58.37 $ 43.95 $ 27.14
The following table summarizes the restricted stock unit activity under the Plan:
Number of
Shares
Weighted Average
Grant Date Fair Value
Per Share
Restricted stock units outstanding at January 1, 2009 ............. 260,509 $46.32
Granted ............................................. 136,327 27.14
Vested .............................................. (65,935) 53.41
Forfeited ............................................ (44,381) 41.22
Restricted stock units outstanding at December 31, 2009 .......... 286,520 36.35
Granted ............................................. 128,525 43.95
Vested .............................................. (62,417) 42.95
Forfeited ............................................ (23,833) 42.44
Restricted stock units outstanding at December 31, 2010 .......... 328,795 37.63
Granted ............................................. 145,768 58.37
Vested .............................................. (146,951) 38.01
Forfeited ............................................ (30,860) 41.79
Restricted stock units outstanding at December 31, 2011 .......... 296,752 $47.19
Restricted stock unit compensation expense for the years ended December 31, 2011, 2010 and 2009 was
$4,320,000, $3,382,000 and $3,492,000, respectively. At December 31, 2011, unrecognized costs related to
restricted stock units totaled approximately $8,806,000, before any related tax benefit. The unrecognized costs
related to restricted stock units are being amortized over the related vesting period using the straight-line
attribution method. These unrecognized costs at December 31, 2011 are expected to be recognized over a
weighted average period of 2.34 years. The total grant date fair value of restricted stock units vested during the
year ended December 31, 2011, 2010 and 2009 was $5,586,000, $2,681,000 and $3,522,000, respectively.
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