Columbia Sportswear 2002 Annual Report Download - page 49

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
amortized to compensation expense as shares are earned during the vesting period. Compensation expense related
to the Participation Plan and the 1996 conversion totaled $682,000 for each of the years ended December 31,
2002, 2001, and 2000. As of December 31, 2002, 234,833 shares of common stock awarded were subject to
future vesting and included in issued and outstanding shares of common stock.
As provided in the Agreement and because the executive’s employment terminated January 3, 2003, the
234,833 unvested shares will vest automatically unless the executive is compensated by the Company within 180
days from the termination date. The amount of such compensation would be $498,000, and would be accounted
for as a reduction to shareholders’ equity upon cancellation of the unvested shares.
NOTE 12—COMMITMENTS AND CONTINGENCIES
The Company leases certain operating facilities from related parties of the Company. Total rent expense,
including month-to-month rentals, for these leases amounted to $370,000, $381,000 and $408,000 for the years
ended December 31, 2002, 2001 and 2000, respectively.
Rent expense was $2,587,000, $2,568,000 and $2,464,000 for non-related party leases during the years
ended December 31, 2002, 2001 and 2000, respectively.
The approximate future minimum payments on all lease obligations at December 31, 2002 are as follows
(amounts in thousands):
Non-related
Parties
Related
Parties Total
2003 ............................................. $2,658 $ 370 $ 3,028
2004 ............................................. 2,175 370 2,545
2005 ............................................. 1,488 370 1,858
2006 ............................................. 1,076 370 1,446
2007 ............................................. 772 370 1,142
Thereafter ........................................ 735 1,481 2,216
$8,904 $3,331 $12,235
The Company is a party to various legal claims, actions and complaints. Although the ultimate resolution of
legal proceedings cannot be predicted with certainty, management believes that disposition of these matters will
not have a material adverse effect on the Company’s consolidated financial statements.
NOTE 13—STOCK-BASED COMPENSATION
The Company’s 1997 Stock Incentive Plan (the “Plan”) provides for issuance of up to 5,400,000 shares of
the Company’s Common Stock of which 1,024,153 shares were available for future stock option grants under the
Plan at December 31, 2002. Options granted prior to 2001 generally become exercisable ratably over a five-year
period beginning from the date of grant and expire ten years from the date of grant. Options granted after 2000
generally become exercisable over a period of four years beginning one year after the date of grant and expire ten
years from the date of the grant.
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