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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
60
2012 2011 (1) 2010
Expected term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.78 years 5.12 years 4.53 years
Expected stock price volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.20% 30.76% 28.79%
Risk-free interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.88% 1.84% 1.91%
Expected dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.80% 1.31% 1.64%
Weighted average grant date fair value. . . . . . . . . . . . . . . . . . . . . . . . . . . $11.57 $16.09 $10.08
—————
(1) During the year ended December 31, 2011, the Company granted two stock option awards totaling 53,720 shares that
vest 100% on the fifth anniversary of the grant date. Because the Company did not have sufficient historical exercise
data to provide a reasonable basis upon which to estimate the expected term for these grants, the Company utilized the
simplified method in developing an estimate of the expected term of these options.
The following table summarizes stock option activity under the Plan:
Number of
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life
Aggregate
Intrinsic
Value (in
thousands)
Options outstanding at January 1, 2010 . . . . . . . . . . . . . . . . . . . . 1,760,173 $ 42.08 6.25 $ 4,599
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385,924 44.11
Cancelled. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (77,481) 46.04
Exercised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (196,402) 37.34
Options outstanding at December 31, 2010 . . . . . . . . . . . . . . . . . 1,872,214 42.84 6.33 33,057
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340,973 61.38
Cancelled. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (40,396) 43.68
Exercised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (253,695) 43.32
Options outstanding at December 31, 2011 . . . . . . . . . . . . . . . . . 1,919,096 46.05 6.25 9,141
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358,169 48.82
Cancelled. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (172,465) 52.90
Exercised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (380,811) 38.34
Options outstanding at December 31, 2012 . . . . . . . . . . . . . . . . . 1,723,989 $ 47.64 6.15 $ 13,001
Options vested and expected to vest at December 31, 2012 . . . . 1,672,468 $ 47.51 6.08 $ 12,808
Options exercisable at December 31, 2012 . . . . . . . . . . . . . . . . . 989,092 $ 46.09 4.63 $ 8,708
The aggregate intrinsic value in the table above represents pre-tax intrinsic value that would have been realized if all
options had been exercised on the last business day of the period indicated, based on the Company’s closing stock price on
that day.
Total stock option compensation expense for the years ended December 31, 2012, 2011 and 2010 was $3,180,000,
$3,550,000 and $3,348,000, respectively. At December 31, 2012, unrecognized costs related to stock options totaled
approximately $5,407,000, before any related tax benefit. The unrecognized costs related to stock options are being amortized
over the related vesting period using the straight-line attribution method. Unrecognized costs related to stock options at
December 31, 2012 are expected to be recognized over a weighted average period of 2.16 years. The aggregate intrinsic
value of stock options exercised was $5,517,000, $4,906,000 and $2,854,000 for the years ended December 31, 2012, 2011
and 2010, respectively. The total cash received as a result of stock option exercises for the years ended December 31, 2012,
2011 and 2010 was $14,600,000, $10,991,000 and $7,333,000, respectively.
Restricted Stock Units