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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
64
Restricted Stock Units
Service-based restricted stock units are granted at no cost to key employees, and shares granted prior to 2009 generally
vest over three years from the date of grant. Service-based restricted stock units granted after 2008 generally vest over a
period of four years. Performance-based restricted stock units are granted at no cost to certain members of the Company’s
senior executive team, excluding the Chairman and the President and Chief Executive Officer. Performance-based restricted
stock units granted prior to 2010 generally vest over a performance period of between two and one-half and three years
with an additional required service period of one year. Performance-based restricted stock units granted after 2009 generally
vest over a performance period of between two and three years. Restricted stock units vest in accordance with the terms
and conditions established by the Compensation Committee of the Board of Directors, and are based on continued service
and, 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, 2013, 2012 and 2011, the Company withheld 41,683, 30,299 and 48,059 shares, respectively, to satisfy
$2,291,000, $1,486,000 and $2,974,000 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:
2013 2012 2011
Vesting period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.84 years 3.86 years 3.96 years
Expected dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.58% 1.77% 1.33%
Estimated average fair value per restricted stock unit granted . $53.34 $46.57 $58.37
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, 2011. . . . . . . . . . . . . . . . . . 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
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185,303 46.57
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (91,383) 42.39
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (70,114) 46.26
Restricted stock units outstanding at December 31, 2012. . . . . . . . . . . . . . . 320,558 48.31
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161,237 53.34
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (116,357) 46.08
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28,191) 49.90
Restricted stock units outstanding at December 31, 2013. . . . . . . . . . . . . . . 337,247 $ 51.33
Restricted stock unit compensation expense for the years ended December 31, 2013, 2012 and 2011 was $5,399,000,
$4,653,000 and $4,320,000, respectively. At December 31, 2013, unrecognized costs related to restricted stock units totaled
approximately $10,640,000, before any related tax benefit. The unrecognized costs related to restricted stock units are