Columbia Sportswear 2012 Annual Report Download - page 58

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
54
A reconciliation of product warranties is as follows (in thousands):
Year Ended December 31,
2012 2011 2010
Balance at beginning of period. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,452 $ 10,256 $ 12,112
Provision for warranty claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,905 4,758 1,371
Warranty claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,272) (4,468) (3,104)
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 (94) (123)
Balance at end of period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,209 $ 10,452 $ 10,256
NOTE 10—INCOME TAXES
Consolidated income from continuing operations before income taxes consisted of the following (in thousands):
Year Ended December 31,
2012 2011 2010
U.S. operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 73,625 $ 68,412 $ 59,881
Foreign operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,282 69,268 45,010
Income before income tax. . . . . . . . . . . . . . . . . . . . . . . . $ 133,907 $ 137,680 $ 104,891
The components of the provision (benefit) for income taxes consisted of the following (in thousands):
Year Ended December 31,
2012 2011 2010
Current:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,365 $ 16,384 $ 24,419
State and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 876 1,995 4,060
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,448 19,508 23,253
27,689 37,887 51,732
Deferred:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,806 407 (18,405)
State and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 690 229 (1,223)
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (137) (4,322) (4,250)
6,359 (3,686)(23,878)
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 34,048 $ 34,201 $ 27,854
The following is a reconciliation of the statutory federal income tax rate to the effective rate reported in the financial
statements:
Year Ended December 31,
2012 2011 2010
(percent of income)
Provision for federal income taxes at the statutory rate 35.0% 35.0% 35.0%
State and local income taxes, net of federal benefit 1.7 1.5 2.7
Non-U.S. income taxed at different rates (5.4) (6.5) (2.3)
Foreign tax credits — (1.8) (3.5)
Reduction of unrecognized tax benefits (4.3) (3.5) (4.0)
Research credits (1.7) (0.6) (0.6)
Other 0.1 0.7 (0.7)
Actual provision for income taxes 25.4% 24.8% 26.6%