Columbia Sportswear 2013 Annual Report Download - page 24

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weak consumer spending patterns or unanticipated levels of order cancellations. Results of operations in any period should
not be considered indicative of the results to be expected for any future period.
Our Products Are Subject to Increasing Product Regulations and We Face Risks of Product Liability and Warranty
Claims
Our products are subject to increasingly stringent and complex domestic and foreign product labeling and performance
and safety standards, laws and other regulations. These requirements could result in greater expense associated with
compliance efforts, and failure to comply with these regulations could result in a delay, non-delivery or recall or destruction
of inventory shipments during key seasons or in other financial penalties. Significant or continuing noncompliance with
these standards and laws could disrupt our business and harm our reputation and, as a result, could have a material adverse
effect on our financial condition, results of operations or cash flows.
Our products are used in outdoor activities, sometimes in severe conditions. Product recalls or product liability claims
resulting from the failure, or alleged failure, of our products could have a material adverse effect on our financial condition,
results of operations or cash flows. Most of our products carry limited warranties for defects in quality and workmanship.
We maintain a warranty reserve for future warranty claims, but the actual costs of servicing future warranty claims may
exceed the reserve, which may also have a material adverse effect on our financial condition, results of operations or cash
flows.
Our Common Stock Price May Be Volatile
The price of our common stock has fluctuated substantially since our initial public offering. Our common stock is
traded on the NASDAQ Global Select Market. Factors such as general market conditions, actions by institutional investors
to rapidly accumulate or divest of a substantial number of our shares, fluctuations in financial results, variances from financial
market expectations, changes in earnings estimates or recommendations by analysts, or announcements by us or our
competitors may cause the market price of our common stock to fluctuate, perhaps substantially.
Insiders Control a Majority of Our Common Stock and May Sell Shares
Three related shareholders, Timothy Boyle, Gertrude Boyle and Sarah Bany, beneficially own a majority of our
common stock. As a result, if acting together, they can effectively control matters requiring shareholder approval without
the cooperation of other shareholders. Shares held by these three insiders are available for resale, subject to the requirements
of, and the rules under, the Securities Act of 1933 and the Securities Exchange Act of 1934. The sale or the prospect of the
sale of a substantial number of these shares may have an adverse effect on the market price of our common stock.
Item 1B. UNRESOLVED STAFF COMMENTS
None.
Item 2. PROPERTIES
Following is a summary of principal properties owned or leased by us:
Corporate Headquarters: Europe Headquarters:
Portland, Oregon (1 location)—owned Geneva, Switzerland (1 location)—leased (1)
U.S. Distribution Facilities: Europe Administrative Operation:
Portland, Oregon (1 location)—owned Strasbourg, France (1 location)—owned
Robards, Kentucky (1 location)—owned Europe Distribution Facility:
Canadian Operation and Distribution Facilities: Cambrai, France (1 location)—owned
London, Ontario (1 location)—owned
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(1) Lease expires in June 2020.
In addition, as of December 31, 2013, we leased approximately 170 locations globally for the operation of our branded
and outlet retail stores. We also have several leases globally for office space, warehouse facilities, storage space, vehicles