What changed in this filing

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Item 1. Business

2021-02-25 compared with 2020-02-27 · 73 added, 46 removed, 123 unchanged (49% of the section changed)

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Mountain Hard Wear ® .

Acquired in 2003, our Mountain Hardwear brand is for climbers, but not just for climbing.

Our Mountain Hardwear brand offers premium apparel, accessories and equipment designed to meet the high-performance needs of climbing enthusiasts and to satisfy climbers' everyday lifestyle.

Acquired in 2003, our Mountain Hardwear brand exists to make gear that works, because out in the mountains, it matters for climbers.

Our Mountain Hardwear brand offers premium apparel, accessories and equipment designed to meet the high-performance needs of climbing enthusiasts and to satisfy climbers' everyday lifestyles.

Acquired in 2014, our prAna brand focuses on clothing for positive change, reviewing each action in an effort to positively impact the planet and its people.

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From city streets to mountain peaks, prAna outfits adventurous spirits in stylish, sustainable and versatile gear.

Across our diverse portfolio of brands, our products have earned worldwide recognition for their innovation, quality and performance.

Across our diverse portfolio of brands, our products have gained worldwide recognition for their innovation, quality and performance.

Our products incorporate the cumulative design, fabrication, fit, and construction technologies that we have pioneered over several decades and continue to innovate.

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We distribute the majority of our U.S.

products sold from distribution centers that we own and operate in Portland, Oregon and Robards, Kentucky, as well as a

third-party logistics company that operates a warehouse in Louisville, Kentucky.

In some instances, we arrange to have products shipped from contract manufacturers through third-party logistics companies or directly to wholesale customer-designated facilities in the United States.

We have approximately 2,920 wholesale customers in the U.S.

In 2019, our two largest U.S.

wholesale customers accounted for approximately 12% of U.S.

products from distribution centers that we own and operate in Portland, Oregon and Robards, Kentucky, as well as a third-

party logistics company that operates a warehouse in Louisville, Kentucky.

In some instances, we arrange to have products shipped from contract manufacturers to wholesale customer-designated facilities in the United States.

We have nearly 2,500 wholesale customers in the U.S.

In 2020, our largest U.S.

wholesale customer accounted for approximately 9% of U.S.

LAAP provides apparel, accessories and equipment products through our Columbia, Mountain Hardwear and prAna brands and footwear products through our Columbia and SOREL brands .

We distribute LAAP products sold through third-party logistics companies that operate warehouses near Tokyo, Seoul, and Shanghai.

We distribute LAAP products through third-party logistics companies that operate warehouses near Tokyo, Seoul, and Shanghai.

In addition, our LAAP wholesale business utilizes international distributors.

The vast majority of our products are shipped directly to the distributors from the contract manufacturers from which we source our products.

We have approximately 400 wholesale customers, including distributors, in LAAP.

In 2019, our three largest LAAP wholesale customers accounted for approximately 9% of LAAP net sales.

The vast majority of our products sold to distributors are shipped directly to the distributors from the contract manufacturers from which we source our products.

We have over 350 wholesale customers, including distributors, in LAAP.

In 2020, our five largest LAAP wholesale customers accounted for approximately 11% of LAAP net sales.

EMEA provides apparel, accessories and equipment products through our Columbia, Mountain Hardwear and prAna brands and footwear products through our Columbia and SOREL brands .

We distribute EMEA products sold through a distribution center that we own and operate in France.

We distribute the majority of EMEA products from a distribution center that we own and operate in France.

In addition, our EMEA wholesale business utilizes international distributors.

The vast majority of our products are shipped directly to the distributors from the contract manufacturers from which we source our products.

We have approximately 3,810 wholesale customers, including distributors, in EMEA.

The vast majority of our products sold to distributors are shipped directly to the distributors from the contract manufacturers from which we source our products.

We have over 3,550 wholesale customers, including distributors, in EMEA.

In 2020, our largest EMEA wholesale customer accounted for approximately 16% of EMEA net sales.

Canada provides apparel, accessories and equipment products through our Columbia, Mountain Hardwear and prAna brands and footwear products through our Columbia and SOREL brands.

We distribute the majority of Canada products sold from a distribution center that we own and operate in Ontario.

We have approximately 650 wholesale customers.

We distribute the majority of Canada products from a distribution center that we own and operate in Ontario.

We have nearly 650 wholesale customers in Canada.

In 2020, our largest Canada wholesale customer accounted for approximately 10% of Canada net sales.

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Seasonality and Variability of Business

Our business is affected by the general seasonal trends common to the industry, including discretionary consumer shopping and spending patterns, as well as seasonal weather.

Our business is affected by the general seasonal trends common to the industry, including seasonal weather and discretionary consumer shopping and spending patterns.

Our products are marketed on a seasonal basis, and our sales are weighted substantially toward the third and fourth quarters, while our operating costs are more equally distributed throughout the year.

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We value legal, ethical and fair treatment of people involved in manufacturing our products.

Independent contractors manufacturing our products are subject to our standards of manufacturing practices to facilitate decent and humane working conditions, as well as promote ethical business practices.

Independent contractors manufacturing our products are subject to our standards of manufacturing practices to facilitate decent, safe and humane working conditions, as well as promote ethical business practices.

Each manufacturing facility is monitored regularly against these standards.

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The physical location of our employees in these regional offices enhances our ability to monitor contract manufacturers for compliance with our policies, procedures and standards regarding quality, delivery, pricing, and labor practices.

The design of our quality assurance process ensures that our products meet and maintain our quality standards and product reputation.

The design of our quality assurance process seeks to ensure that our products meet and maintain our quality standards and product reputation.

Our apparel, accessories and equipment products are manufactured in 12 countries, with approximately 50% of these products produced in Vietnam and China.

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Our integrated marketing efforts deliver consistent messages about the performance benefits, features and styles of our products within each of our brands and their different target consumers.

We utilize a variety of means to deliver our marketing messages, including digital marketing, social media interactions, television and print publications, experiential events, branded retail stores in select high-profile locations, enhanced product store displays, and consumer focused public relations efforts.

We utilize a variety of means to deliver our marketing messages, including digital marketing, social media interactions, television and print publications, experiential events, brand ambassadors, branded retail stores in select high-profile locations, enhanced product store displays, and consumer focused public relations efforts.

In addition, we reinforce our brands' marketing messages with our key wholesale customers by utilizing digital platforms, television, radio, print and advertising campaigns, as well as in-store branded visual merchandising display tools and favorable product presentation.

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Finished goods inventory continues to represent one of the largest and highest risk working capital assets in our business model.

We leverage our demand planning process and inventory management to achieve our working capital management goals.

We develop a forecast to drive timely purchases of inventory quantities to satisfy demand, minimize transportation costs, including rush costs needed to deliver products to customers by their requested delivery dates, and minimize excess inventory to avoid liquidating excess end-of season products at discounted prices.

Our demand planning process and inventory management is designed to help us achieve our working capital management goals.

develop a forecast in an effort to drive timely purchases of inventory quantities to satisfy demand, minimize transportation costs, including rush costs needed to deliver products to customers by their requested delivery dates, and minimize excess inventory to avoid liquidating excess end-of season products at discounted prices.

Our production cycle from the design to the delivery of our products requires significant inventory commitment.

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We estimate the volumes of the season's products to be purchased from our global suppliers by utilizing our forecasted wholesale customers orders, cancellations, reorders, and replenishment orders, forecasted demand from our DTC businesses, market trends, historical data, customer and sales feedback, and other factors.

We maintain and continue to make substantial investments in information systems, processes and personnel to support our ongoing demand planning efforts to provide adequate forecasting of optimal inventory to meet customer and consumer demands.

We maintain and continue to make substantial investments in information systems, processes and personnel to support our ongoing demand planning efforts to provide forecasting of optimal inventory to meet customer and consumer demands.

Credit and Collection

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The markets for outdoor, active and everyday lifestyle apparel, footwear, accessories, and equipment products are highly competitive and we face significant competition from numerous companies.

Our competition includes large companies with great financial, marketing and operational resources, small companies with limited resources but deep entrenchment in their local markets, and other branded competitors.

Our competition includes large companies with significant financial, marketing and operational resources, small companies with limited resources but deep entrenchment in their local markets, and other branded competitors.

We also face competition from our wholesale customers who, under their own private brand names, produce and distribute similar products to our target consumers through their own retail stores and e-commerce businesses.

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Government Regulation

Many of our international shipments are subject to existing or potential governmental tariff and non-tariff barriers to trade, such as import duties and potential safeguard measures, that may limit the quantity of various types of goods that may be imported into the United States and other countries.

These trade barriers often represent a material portion of the cost to manufacture and import our products.

Our products are also subject to domestic and foreign product safety and environmental standards, laws and other regulations, which are increasingly restrictive and complex.

At December 31, 2019, we had approximately 8,900 full-time and part-time employees globally.

As a company with global operations, we are, and our products are, subject to the laws of the United States and multiple foreign jurisdictions in which we operate and the rules and regulations of various governing bodies, which may differ among jurisdictions, including laws and regulations concerning product safety, environmental standards, trade, information security, privacy, labor and employment, health, marketing, competition, and safety.

See Item 1A of this annual report for more information of risks relating to these laws, rules, and regulations.

Human Capital

We believe that attracting and retaining exceptional talent strengthens our enterprise and propels us as a leader in product innovation.

As part of these efforts, we strive to offer a competitive compensation and benefits program, foster a community where everyone feels included and empowered to do their best work and promote employee well-being.

2020 was a unique year for our workforce as a result of the COVID-19 pandemic.

Other than operations teams related to retail, customer service and distribution, our workforce largely worked from home throughout most of 2020.

For our employees who continued to work on-site, we instituted extensive safety protocols and procedures.

We also aimed to minimize the impact of the COVID-19 pandemic on our employees financially by participating in each country's unique government stimulus programs, where applicable.

Nevertheless, our employee workforce shrank globally in 2020 to nearly 7,275 employees at December 31, 2020 from nearly 8,900 at December 31, 2019.

At December 31, 2020, our employee workforce was comprised of approximately 3,700 full-time and part-time retail employees, 825 distribution employees and 2,750 corporate employees.

From December 31, 2019 to December 31, 2020 we had an overall employee turnover rate of 56%, impacted by an 86% turnover rate in our retail employee base.

Approximately 35% of our workforce was located outside of the United States at December 31, 2020.

Compensation and Benefits

Our compensation plans aim to reward performance.

We offer competitive wages and, to align the interest of our management with those of our shareholders, shares of our common stock through a stock incentive plan.

Globally, we offer employees affordable, competitive and comprehensive benefit programs.

In the United States, for our largest employee base, we sponsor comprehensive medical, dental, vision and health savings or flexible spending account plans.

We also provide 401(k) matching, paid time off, an employee assistance plan, life insurance, and short-term and long-term disability insurance.

Diversity, Equity and Inclusion

At December 31, 2020, our global workforce was self-disclosed as 42% male, 56% female and 2% undisclosed or chose not to identify.

In the United States, the self-disclosed ethnicity of our workforce, including retail and distribution employees, was 64% White, 7% Asian, 17% Hispanic or Latino, 5% Black, less than 1% American Indian or Alaskan Native, less than 1% Native Hawaiian or other Pacific Islander, 4% two or more races and 2% undisclosed or chose not to identify.

A Diversity, Equity and Inclusion Leadership Team was formed in 2020 to lead our efforts toward a more diverse, equitable, and inclusive workplace.

This team focuses on supporting strategies and efforts to advance progress in the following categories:

listening and learning, diversifying talent, creating and sponsoring opportunities, and being a force for good.

Employee Well-Being

We align our employee programs to the five elements of well-being:

physical health, career, social and emotional health, financial, and community.

In the category of career, we focused our efforts in 2020 on digital learning through our Always Be Learning initiative and access to online learning opportunities.

For more information on our efforts to support our workforce, see our latest Corporate Responsibility Report at http://columbia.com/corporate-responsibility.

Available Information

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Bragdon 58 Executive Vice President, Chief Administrative Officer, General Counsel, and Secretary

Cusick 52 Executive Vice President, Chief Operating Officer

Franco Fogliato 50 Executive Vice President, Americas General Manager

Morse 53 Senior Vice President, Emerging Brands and APAC

Swanson 45 Senior Vice President, Chief Financial Officer

Franco Fogliato 51 Executive Vice President, Global Omni-Channel

Kulok 55 Executive Vice President, Chief Supply Chain Officer

Douglas Morse 55 Senior Vice President, Emerging Brands

Swanson 46 Executive Vice President, Chief Financial Officer

Boyle joined the Company in 1971 as General Manager, served as the Company's President from 1988 to 2015 and reassumed the role in 2017.

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He has served as a member of the Board of Directors since 1978, and as Interim Chairman of the Board of Directors from November 2019 until his appointment as Chairman of the Board of Directors in January 2020.

Boyle is also a member of the Board of Directors of Northwest Natural Gas Company and Craft Brew Alliance, Inc.

Boyle is also a member of the Board of Directors of Northwest Natural Holding Company (NYSE:

NWN), and its subsidiary, Northwest Natural Gas Company.

Boyle is a third-generation member of the Company's founding Boyle family, the father of Joseph P.

Boyle, and the son of Gertrude Boyle, who served as the Chairman of the Board of Directors from 1970 until her death in 2019.

Boyle joined the Company in 2005 and has served in numerous roles of increasing leadership and responsibility, including General Merchandising Manager of Outerwear, Accessories, Equipment, Collegiate and Licensing, Vice President of Apparel Merchandising, and Senior Vice President of Columbia Brand Merchandising & Design.

Merchandising, and Senior Vice President of Columbia Brand Merchandising & Design.

He was promoted to Executive Vice President, Columbia Brand President in 2017.

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Bragdon served as an attorney in the corporate securities and finance group at Stoel Rives LLP, and Special Assistant Attorney General for the Oregon Department of Justice.

Cusick joined the Company in 2002 as Corporate Controller, was named Vice President and Corporate Controller in 2006 and was named Vice President and Chief Accounting Officer in 2008.

He was promoted to Vice President, Chief Financial Officer and Treasurer in 2009, was named Senior Vice President of Finance, Chief Financial Officer and Treasurer in 2010, and Executive Vice President of Finance and Chief Financial Officer in 2015.

He was promoted to Executive Vice President and Chief Operating Officer in 2017.

Prior to joining the Company, Mr.

Cusick held various financial management positions at Cadence Design Systems and was an accountant with KPMG LLP.

Cusick also serves as a member of the Board of Directors of Barrett Business Services, Inc.

Franco Fogliato joined the Company in 2013 as Senior Vice President and General Manager EMEA Direct Sales.

He was promoted to Senior Vice President and General Manager of EMEA in 2016 and to Executive Vice President, Americas General Manager in 2017.

In 2020, he was named Executive Vice President, Global Omni-Channel.

Prior to joining the Company, Mr.

Fogliato served as General Manager of the Billabong Group in Europe as well as a member of the Billabong Group's executive board, and held various European leadership positions with The North Face brand culminating as General Manager of Western Europe.

Morse joined the Company in 1995 and has served in numerous roles of increasing responsibility during his tenure, including Director of U.S.

Kulok joined the Company in 2008 as Senior Director of Global Planning.

She was promoted to Senior Vice President of Global Supply Chain Operations in 2015, was named Senior Vice President of Global Supply Chain Operations and Manufacturing in July 2020 and Executive Vice President, Chief Supply Chain Officer in November 2020.

Prior to joining the Company, Ms.

Kulok held various leadership positions at Nike, Inc, including USA Apparel Marketplace Planning Director and Director of Regional Planning.

Douglas Morse joined the Company in 1995 and has served in numerous roles of increasing responsibility during his tenure, including Director of U.S.

Customer Operations, Director of Footwear Operations, General Manager of the Company's Canadian subsidiary, Interim General Manager of the Company's Europe-direct business, Chief Business Development Officer and Vice President and General Manager of LAAP Distributors.

He was promoted to Senior Vice President, Emerging Brands and APAC in 2017.

Swanson joined the Company in 2003 and has served in numerous roles of increasing responsibility during his tenure, being named Vice President of Finance in 2015 and promoted to Senior Vice President, Chief Financial Officer in 2017.

Prior to joining the

He was promoted to Senior Vice President, Emerging Brands in 2017.

Prior to joining the Company, Mr.

Swanson served in a variety of financial planning and analysis, tax, and accounting roles, including senior financial analyst at Freightliner Corporation and at Tality Corporation, and as a senior tax and business advisory associate at Arthur Andersen.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business