Purpose: To help familiarize you with the financial reporting of a real company in order to further your understanding of the chapter material you are learning. This case addresses the long-term assets of Columbia Sportswear. The majority of these assets consist of property and equipment, and intangible assets. In the text, you learned how most long-term tangible assets used in business are capitalized and depreciated over their estimated useful lives. Further, you learned that certain intangible assets are amortized over time while others are not. In this case, you will not only see and understand the classification and presentation of these assets, but also explore the methods used by Columbia Sportswear to depreciate and amortize them. Refer to Columbia Sportswear’s financial statements in Appendix A . Also, consider the information presented in footnote 2, under the headings Property, plant, and equipment, and intangible assets and goodwill, footnote 6 titled Property, Plant, and Equipment, Net and footnote 7 titled intangible assets and Goodwill.

Requirements
1. What was the balance of net property, plant, and equipment on December 31, 2010? What was the balance of net property, plant, and equipment on December 31, 2009? Did the amount of ending net property, plant, and equipment increase or decrease? Assume Columbia Sportswear removed $357,000 of fully-depreciated assets from fixed assets in 2010. What effect did this have on the value of the net property, plant, and equipment balance? Explain your answer.
2. What methods of depreciation were used by Columbia Sportswear? What were the estimated useful lives? What kinds of intangible assets does Columbia Sportswear have? Which intangible assets are amortized by Columbia Sportswear and which are not? Why? In which year did Columbia Sportswear acquire most of its patents?
3. What was the percentage of net property, plant, and equipment compared to the total assets on December 31, 2010? What was the percentage of net property, plant, and equipment compared to the total assets on December 31, 2009? Did the percentage increase or decrease during the year?
4. Columbia Sportswear lists “Leasehold improvements” and “Construction in progress” as part of Property, Plant, and Equipment. Although these assets are not discussed in the textbook, can you describe what these assets represent?