What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-08-05 compared with 2021-05-06 · 211 added, 116 removed, 416 unchanged (44% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands) March 31,

(in thousands) June 30,

2021 December 31,

2020 March 31,

2020 June 30,

Current Assets:

43 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands, except per share amounts) 2021 2020 2021 2020

4 unchanged sentences

Net licensing income 4,244 1,122 7,711 4,241

Income (loss) from operations 70,480 ( 1,987 )

Interest income, net 278 1,813

Operating income (loss) 34,995 ( 70,300 ) 105,475 ( 72,287 )

Interest income (expense), net 598 ( 805 ) 876 1,008

Other non-operating income (expense), net ( 294 ) 935 ( 598 ) 2,673

Income before income tax 70,454 1,564

Income tax expense ( 14,554 ) ( 1,351 )

Net income 55,900 213

Earnings per share:

Income (loss) before income tax 35,299 ( 70,170 ) 105,753 ( 68,606 )

Income tax benefit (expense) 5,385 19,463 ( 9,169 ) 18,112

Net income (loss) $ 40,684 $ ( 50,707 ) $ 96,584 $ ( 50,494 )

Earnings (loss) per share:

Basic $ 0.61 $ ( 0.77 ) $ 1.46 $ ( 0.76 )

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2021 2020 2021 2020

Net income $ 55,900 $ 213

Other comprehensive loss:

Unrealized gains on derivative transactions (net of tax effects of $( 3,368 ) and $( 4,145 ), respectively)

Net income (loss) $ 40,684 $ ( 50,707 ) $ 96,584 $ ( 50,494 )

Other comprehensive income (loss):

Unrealized gains (losses) on derivative transactions (net of tax effects of $ 1,183 , $ 1,521 , $( 2,185 ) and $( 2,624 ), respectively)

( 3,551 ) ( 4,862 ) 5,012 6,663

Foreign currency translation adjustments (net of tax effects of $( 265 ), $( 460 ), $ 149 and $ 37 , respectively)

5,230 6,976 ( 7,974 ) ( 8,098 )

Other comprehensive loss ( 4,641 ) ( 3,549 )

Other comprehensive income (loss) 1,679 2,114 ( 2,962 ) ( 1,435 )

Comprehensive income (loss) $ 42,363 $ ( 48,593 ) $ 93,622 $ ( 51,929 )

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands) 2021 2020

Cash flows from operating activities:

Net income $ 55,900 $ 213

Adjustments to reconcile net income to net cash provided by operating activities:

Net income (loss) $ 96,584 $ ( 50,494 )

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation, amortization, and non-cash lease expense 60,962 65,924

Provision for uncollectible accounts receivable ( 9,757 ) 22,815

Loss on disposal or impairment of property, plant and equipment 131 2,138

Loss on disposal or impairment of property, plant and equipment and right-of-use assets 201 8,800

Deferred income taxes ( 9,667 ) 4,362

10 unchanged sentences

Other liabilities 1,927 4,757

Net cash provided by operating activities 110,899 12,754

Net cash provided by (used in) operating activities 117,162 ( 37,276 )

Cash flows from investing activities:

6 unchanged sentences

Repayments on credit facilities ( 19,683 ) ( 373,390 )

Payment of line of credit issuance fees — ( 1,674 )

Proceeds from issuance of common stock related to stock-based compensation 20,287 1,987

2 unchanged sentences

Cash dividends paid ( 34,540 ) ( 17,195 )

Net cash provided by (used in) financing activities ( 19,873 ) 21,470

Net cash used in financing activities ( 73,988 ) ( 151,706 )

Net effect of exchange rate changes on cash ( 2,890 ) ( 2,861 )

9 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Three Months Ended March 31, 2021

Three Months Ended June 30, 2021

(in thousands, except per share amounts) Common Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total

Outstanding Amount

BALANCE, MARCH 31, 2021

66,457 $ 22,230 $ 1,850,415 $ ( 3,835 ) $ 1,868,810

Net income (loss) — — 40,684 — 40,684

Other comprehensive income (loss):

Unrealized losses on derivative transactions, net — — — ( 3,551 ) ( 3,551 )

Foreign currency translation adjustment, net — — — 5,230 5,230

Cash dividends ($ 0.26 per share)

— — ( 17,255 ) — ( 17,255 )

Issuance of common stock related to stock-based compensation, net

110 6,433 — — 6,433

Stock-based compensation expense — 4,949 — — 4,949

Repurchase of common stock ( 419 ) ( 33,612 ) ( 10,031 ) — ( 43,643 )

BALANCE, JUNE 30, 2021

66,148 $ — $ 1,863,813 $ ( 2,156 ) $ 1,861,657

Three Months Ended June 30, 2020

(in thousands, except per share amounts) Common Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total

Outstanding Amount

BALANCE, MARCH 31, 2020

66,116 $ 565 $ 1,704,000 $ ( 7,974 ) $ 1,696,591

Net income (loss) — — ( 50,707 ) — ( 50,707 )

Other comprehensive income (loss):

Unrealized losses on derivative transactions, net — — — ( 4,862 ) ( 4,862 )

Foreign currency translation adjustment, net — — — 6,976 6,976

Issuance of common stock related to stock-based compensation, net

32 794 — — 794

Stock-based compensation expense — 4,037 — — 4,037

BALANCE, JUNE 30, 2020

66,148 $ 5,396 $ 1,653,293 $ ( 5,860 ) $ 1,652,829

See accompanying notes to condensed consolidated financial statements

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Six Months Ended June 30, 2021

(in thousands, except per share amounts) Common Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total

Outstanding Amount

BALANCE, DECEMBER 31, 2020

66,252 $ 20,165 $ 1,811,800 $ 806 $ 1,832,771

Net income — — 55,900 — 55,900

Other comprehensive loss:

Net income (loss) — — 96,584 — 96,584

Other comprehensive income (loss):

Unrealized gains on derivative transactions, net — — — 5,012 5,012

6 unchanged sentences

Repurchase of common stock ( 528 ) ( 44,835 ) ( 10,031 ) — ( 54,866 )

BALANCE, MARCH 31, 2021

BALANCE, JUNE 30, 2021

66,148 $ — $ 1,863,813 $ ( 2,156 ) $ 1,861,657

Three Months Ended March 31, 2020

Six Months Ended June 30, 2020

(in thousands, except per share amounts) Common Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total

2 unchanged sentences

67,561 $ 4,937 $ 1,848,935 $ ( 4,425 ) $ 1,849,447

Net income — — 213 — 213

Other comprehensive loss:

Net income (loss) — — ( 50,494 ) — ( 50,494 )

Other comprehensive income (loss):

Unrealized gains on derivative transactions, net — — — 6,663 6,663

6 unchanged sentences

Repurchase of common stock ( 1,557 ) ( 4,936 ) ( 127,953 ) — ( 132,889 )

BALANCE, MARCH 31, 2020

BALANCE, JUNE 30, 2020

66,148 $ 5,396 $ 1,653,293 $ ( 5,860 ) $ 1,652,829

10 unchanged sentences

Note 8 Stock-Based Compensation 11

Note 9 Earnings Per Share 10

Note 9 Earnings (Loss) Per Share 12

Note 10 Accumulated Other Comprehensive Income (Loss) 12

6 unchanged sentences

NOTE 1—BASIS OF PRESENTATION AND ORGANIZATION

The accompanying unaudited condensed consolidated financial statements have been prepared by the management of Columbia Sportswear Company (together with its wholly owned subsidiaries, the "Company") and, in the opinion of management, include all normal recurring material adjustments necessary to present fairly the Company's financial position as of March 31, 2021, December 31, 2020 and March 31, 2020, and the results of operations and cash flows for the three months ended March 31, 2021 and 2020.

The accompanying unaudited condensed consolidated financial statements have been prepared by the management of Columbia Sportswear Company (together with its wholly owned subsidiaries, the "Company") and, in the opinion of management, include all normal recurring material adjustments necessary to present fairly the Company's financial position as of June 30, 2021, December 31, 2020 and June 30, 2020, the results of operations for the three and six months ended June 30, 2021 and 2020, and cash flows for the six months ended June 30, 2021 and 2020.

The December 31, 2020 financial information was derived from the Company's audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020.

A significant part of the Company's business is of a seasonal nature;

therefore, results of operations for the three months ended March 31, 2021 are not necessarily indicative of results to be expected for other quarterly periods or for the full year.

therefore, results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of results to be expected for other quarterly periods or for the full year.

Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission.

13 unchanged sentences

Recently Adopted Accounting Pronouncements

Effective January 1, 2021, the Company adopted Accounting Standards Update ("ASU") No.

Effective January 1, 2021, the Company adopted Accounting Standards Update No.

2019-12 , Income Taxes (Topic 740):

10 unchanged sentences

The following tables disaggregate the Company's operating segment Net sales by product category and channel, which the Company believes provides a meaningful depiction of how the nature, timing, and uncertainty of Net sales are affected by economic factors:

Three Months Ended March 31, 2021

Three Months Ended June 30, 2021

(in thousands)

8 unchanged sentences

Total $ 379,065 $ 77,975 $ 88,574 $ 20,756 $ 566,370

Three Months Ended March 31, 2020

Three Months Ended June 30, 2020

(in thousands)

8 unchanged sentences

Total $ 183,245 $ 67,310 $ 58,291 $ 7,765 $ 316,611

Performance Obligations

For the three months ended March 31, 2021 and 2020, Net sales recognized from performance obligations related to prior periods were not material.

Net sales expected to be recognized in any future period related to remaining performance obligations are not material.

Contract Balances

As of March 31, 2021, December 31, 2020 and March 31, 2020, contract liabilities included in Accrued liabilities on the Condensed Consolidated Balance Sheets, which consisted of obligations associated with the Company's gift card and customer loyalty programs, were not material.

Six Months Ended June 30, 2021

(in thousands)

LAAP EMEA Canada Total

Product category net sales

Apparel, Accessories and Equipment $ 634,245 $ 134,761 $ 110,814 $ 42,140 $ 921,960

Footwear 153,482 55,191 48,525 12,818 270,016

Total $ 787,727 $ 189,952 $ 159,339 $ 54,958 $ 1,191,976

Channel net sales

Wholesale $ 377,068 $ 87,619 $ 138,316 $ 34,713 $ 637,716

Direct-to-consumer 410,659 102,333 21,023 20,245 554,260

Total $ 787,727 $ 189,952 $ 159,339 $ 54,958 $ 1,191,976

Index to Notes to Consolidated Financial Statements

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Six Months Ended June 30, 2020

(in thousands)

LAAP EMEA Canada Total

Product category net sales

Apparel, Accessories and Equipment $ 461,133 $ 123,789 $ 78,940 $ 32,224 $ 696,086

Footwear 97,980 46,172 35,199 9,402 188,753

Total $ 559,113 $ 169,961 $ 114,139 $ 41,626 $ 884,839

Channel net sales

Wholesale $ 276,202 $ 88,593 $ 95,342 $ 25,726 $ 485,863

Direct-to-consumer 282,911 81,368 18,797 15,900 398,976

Total $ 559,113 $ 169,961 $ 114,139 $ 41,626 $ 884,839

Performance Obligations

For the three and six months ended June 30, 2021 and 2020, Net sales recognized from performance obligations related to prior periods were not material.

Net sales expected to be recognized in any future period related to remaining performance obligations are not material.

Contract Balances

As of June 30, 2021, December 31, 2020 and June 30, 2020, contract liabilities included in Accrued liabilities on the Condensed Consolidated Balance Sheets, which consisted of obligations associated with the Company's gift card and customer loyalty programs, were not material.

NOTE 3—INTANGIBLE ASSETS, NET

1 unchanged sentence

(in thousands)

March 31, 2021 December 31, 2020 March 31, 2020

June 30, 2021 December 31, 2020 June 30, 2020

Intangible assets subject to amortization:

9 unchanged sentences

Intangible assets, net $ 102,733 $ 103,558 $ 122,105

Amortization expense for intangible assets subject to amortization was $ 0.4 million and $ 0.7 million for the three months ended March 31, 2021 and 2020, respectively.

The following table presents the estimated annual amortization expense for the years 2021 through 2025:

Amortization expense for intangible assets subject to amortization was $ 0.4 million and $ 0.7 million for the three months ended June 30, 2021 and 2020, respectively, and was $ 0.8 million and $ 1.5 million for the six months ended June 30, 2021, and 2020, respectively.

The following table presents the estimated annual amortization expense for the years ending 2021 through 2025:

(in thousands)

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

NOTE 4—SHORT-TERM BORROWINGS AND CREDIT LINES

2 unchanged sentences

In March 2021, the Company's Japanese subsidiary entered into an agreement to establish an unsecured and uncommitted overdraft facility providing for borrowings up to a maximum of ¥ 400.0 million.

The combined available borrowings of the three lines was approximately US$ 24.2 million at March 31, 2021.

The combined available borrowings of the three lines was approximately US$ 24.2 million at June 30, 2021.

Borrowings under the ¥ 1.5 billion and ¥ 400.0 million overdraft facilities accrue interest at the Tokyo Interbank Offered Rate plus 50 basis points and borrowings under the US$ 7.0 million overdraft facility accrue interest at 150 basis points.

As of March 31, 2021, there was no balance outstanding under these facilities.

As of June 30, 2021, there was no balance outstanding under these facilities.

NOTE 5—INCOME TAXES

For the three months ended March 31, 2021 and 2020, the Company's effective income tax rates were 20.7 % and 86.4 %, respectively.

The decrease in the effective income tax rate for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 was primarily driven by a change in the mix of book income or loss among jurisdictions and the recording of a foreign jurisdiction valuation allowance during the prior year period.

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

For the three months ended June 30, 2021 and 2020, the Company's effective income tax rates were negative 15.3 % and 27.7 %, respectively.

For the six months ended June 30, 2021 and 2020, the Company's effective income tax rates were 8.7 % and 26.4 %, respectively.

The decrease in the effective income tax rate for the three and six months ended June 30, 2021 was primarily due to a non-recurring decrease in accrued foreign withholding taxes.

NOTE 6—COMMITMENTS AND CONTINGENCIES

2 unchanged sentences

NOTE 7—SHAREHOLDERS' EQUITY

Since the inception of the Company's stock repurchase plan in 2004 through March 31, 2021, the Company's Board of Directors has authorized the repurchase of $ 1.5 billion of the Company's common stock.

Since the inception of the Company's stock repurchase plan in 2004 through June 30, 2021, the Company's Board of Directors has authorized the repurchase of $ 1.5 billion of the Company's common stock.

Shares of the Company's common stock may be purchased in the open market or through privately negotiated transactions, subject to market conditions, and generally settle subsequent to the trade date.

The repurchase program does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time.

Under this program as of March 31, 2021, the Company had repurchased 26.9 million shares at an aggregate purchase price of $ 1,029.0 million and has $ 471.0 million remaining available.

During the three months ended March 31, 2021, the Company purchased an aggregate of $ 11.2 million of the Company's common stock under this program.

Under this program, as of June 30, 2021, the Company had repurchased 27.3 million shares at an aggregate purchase price of $ 1,072.6 million and has $ 427.4 million remaining available.

During the three and six months ended June 30, 2021, the Company purchased an aggregate of $ 43.6 million and $ 54.9 million, respectively, of the Company's common stock under this program.

NOTE 8—STOCK-BASED COMPENSATION

2 unchanged sentences

Stock-based compensation expense consisted of the following:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2021 2020 2021 2020

3 unchanged sentences

Stock Options

During the three months ended March 31, 2021, the Company granted a total of 496,609 stock options at a weighted average grant date fair value of $ 17.26 per share.

As of March 31, 2021, unrecognized costs related to outstanding stock options totaled $ 17.0 million, before any related tax benefit.

As of March 31, 2021, unrecognized costs related to stock options are expected to be recognized over a weighted average period of 2.92 years.

Restricted Stock Units

During the three months ended March 31, 2021, the Company granted 150,912 restricted stock units at a weighted average grant date fair value of $ 95.39 per share.

As of March 31, 2021, unrecognized costs related to outstanding restricted stock units totaled $ 27.7 million, before any related tax benefit.

As of March 31, 2021, unrecognized costs related to restricted stock units are expected to be recognized over a weighted average period of 2.74 years.

NOTE 9—EARNINGS PER SHARE

Earnings per share ("EPS") is presented on both a basic and diluted basis.

Basic EPS is based on the weighted average number of common shares outstanding.

Diluted EPS reflects the potential dilution that could occur if outstanding securities or other contracts to issue common stock were exercised or converted into common stock.

During the six months ended June 30, 2021, the Company granted a total of 533,105 stock options at a weighted average grant date fair value of $ 17.52 per share.

As of June 30, 2021, unrecognized costs related to outstanding stock options totaled $ 15.6 million,

Index to Notes to Consolidated Financial Statements

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

before any related tax benefit.

As of June 30, 2021, unrecognized costs related to stock options are expected to be recognized over a weighted average period of 2.77 years.

Restricted Stock Units

During the six months ended June 30, 2021, the Company granted 171,773 restricted stock units at a weighted average grant date fair value of $ 96.16 per share.

As of June 30, 2021, unrecognized costs related to outstanding restricted stock units totaled $ 26.3 million, before any related tax benefit.

As of June 30, 2021, unrecognized costs related to restricted stock units are expected to be recognized over a weighted average period of 2.53 years.

NOTE 9—EARNINGS (LOSS) PER SHARE

Earnings (loss) per share ("EPS") is presented on both a basic and diluted basis.

Basic EPS is based on the weighted average number of common shares outstanding.

Diluted EPS reflects the potential dilution that could occur if outstanding securities or other contracts to issue common stock were exercised or converted into common stock.

A reconciliation of the common shares used in the denominator for computing basic and diluted EPS is as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands, except per share amounts)

Weighted average common shares outstanding, used in computing basic earnings per share

2021 2020 2021 2020

Weighted average common shares outstanding, used in computing basic earnings (loss) per share

66,327 66,135 66,345 66,553

Effect of dilutive stock options and restricted stock units 460 — 513 —

Weighted average common shares outstanding, used in computing diluted earnings per share

Weighted average common shares outstanding, used in computing diluted earnings (loss) per share

66,787 66,135 66,858 66,553

Earnings per share of common stock:

Earnings (loss) per share of common stock:

Basic $ 0.61 $ ( 0.77 ) $ 1.46 $ ( 0.76 )

Diluted $ 0.61 $ ( 0.77 ) $ 1.44 $ ( 0.76 )

Stock options, service-based restricted stock units, and performance-based restricted stock representing 693,403 and 937,523 shares of common stock for the three months ended March 31, 2021 and 2020, respectively, were outstanding but were excluded from the computation of diluted EPS because their effect would have been anti-dilutive under the treasury stock method or because the shares were subject to performance conditions that had not been met.

Stock options, service-based restricted stock units, and performance-based restricted stock representing 611,143 and 793,051 shares of common stock for the three and six months ended June 30, 2021, respectively, were outstanding but were excluded from the computation of diluted EPS because their effect would have been anti-dilutive under the treasury stock method, or because the shares were subject to performance conditions that had not been met.

Stock options, service-based restricted stock units, and performance-based restricted stock representing 2,468,516 and 2,334,223 shares of common stock for the three and six months ended June 30, 2020, respectively, were outstanding but were excluded from the computation of diluted EPS because their effect would have been anti-dilutive due to a net loss in the period or because the shares were subject to performance conditions that had not been met.

NOTE 10—ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Accumulated other comprehensive income (loss) on the Condensed Consolidated Balance Sheets is net of applicable taxes, and consists of unrealized holding gains and losses on available-for-sale securities, unrealized gains and losses on certain derivative transactions and foreign currency translation adjustments.

The following table sets forth the changes in Accumulated other comprehensive income (loss) for the three months ended March 31, 2021:

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The following table sets forth the changes in Accumulated other comprehensive income (loss) for the three months ended June 30, 2021:

(in thousands) Unrealized holding

2 unchanged sentences

adjustments Total

Balance at December 31, 2020 $ ( 9,369 ) $ 10,175 $ 806

Balance at March 31, 2021

$ ( 806 ) $ ( 3,029 ) $ ( 3,835 )

Other comprehensive income (loss) before reclassifications ( 3,903 ) 5,230 1,327

Amounts reclassified from accumulated other comprehensive income (loss) (1)

( 716 ) — ( 716 )

Net other comprehensive income (loss) during the year ( 3,551 ) 5,230 1,679

Balance at March 31, 2021 $ ( 806 ) $ ( 3,029 ) $ ( 3,835 )

(1) Amounts reclassified are recorded in Net sales, Cost of sales, or Other non-operating income (expense), net on the Condensed Consolidated Statements of Operations.

Balance at June 30, 2021

$ ( 4,357 ) $ 2,201 $ ( 2,156 )

(1) Amounts reclassified are recorded in Net sales or Cost of sales on the Condensed Consolidated Statements of Operations.

Refer to Note 12 for further information regarding reclassifications.

The following table sets forth the changes in Accumulated other comprehensive income (loss) for the three months ended March 31, 2020:

The following table sets forth the changes in Accumulated other comprehensive income (loss) for the three months ended June 30, 2020:

(in thousands) Unrealized gains (losses)

4 unchanged sentences

adjustments Total

Balance at March 31, 2020

$ ( 4 ) $ 21,007 $ ( 28,977 ) $ ( 7,974 )

Other comprehensive income (loss) before reclassifications — ( 3,347 ) 6,976 3,629

Amounts reclassified from accumulated other comprehensive income (loss) (1)

— ( 1,515 ) — ( 1,515 )

Net other comprehensive income (loss) during the year — ( 4,862 ) 6,976 2,114

Balance at June 30, 2020

$ ( 4 ) $ 16,145 $ ( 22,001 ) $ ( 5,860 )

(1) Amounts reclassified are recorded in Net sales, Cost of sales, or Other non-operating income (expense), net on the Condensed Consolidated Statements of Operations.

Refer to Note 12 for further information regarding reclassifications.

The following table sets forth the changes in Accumulated other comprehensive income (loss) for the six months ended June 30, 2021:

(in thousands) Unrealized holding

gains (losses) on

derivative transactions Foreign currency

adjustments Total

Balance at December 31, 2020

$ ( 9,369 ) $ 10,175 $ 806

Other comprehensive income (loss) before reclassifications 5,376 ( 7,974 ) ( 2,598 )

2 unchanged sentences

Net other comprehensive income (loss) during the year 5,012 ( 7,974 ) ( 2,962 )

Balance at March 31, 2020 $ ( 4 ) $ 21,007 $ ( 28,977 ) $ ( 7,974 )

Balance at June 30, 2021

$ ( 4,357 ) $ 2,201 $ ( 2,156 )

(1) Amounts reclassified are recorded in Net sales, Cost of sales, or Other non-operating income (expense), net on the Condensed Consolidated Statements of Operations.

3 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The following table sets forth the changes in Accumulated other comprehensive income (loss) for the six months ended June 30, 2020:

(in thousands) Unrealized gains (losses)

on available for

sale securities Unrealized holding

gains (losses) on

derivative transactions Foreign currency

adjustments Total

Balance at December 31, 2019

$ ( 4 ) $ 9,482 $ ( 13,903 ) $ ( 4,425 )

Other comprehensive income (loss) before reclassifications — 11,015 ( 8,098 ) 2,917

Amounts reclassified from accumulated other comprehensive income (loss) (1)

— ( 4,352 ) — ( 4,352 )

Net other comprehensive income (loss) during the year — 6,663 ( 8,098 ) ( 1,435 )

Balance at June 30, 2020

$ ( 4 ) $ 16,145 $ ( 22,001 ) $ ( 5,860 )

(1) Amounts reclassified are recorded in Net sales, Cost of sales, or Other non-operating income (expense), net on the Condensed Consolidated Statements of Operations.

Refer to Note 12 for further information regarding reclassifications.

NOTE 11—SEGMENT INFORMATION

6 unchanged sentences

The following table presents financial information for the Company's reportable segments:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands)

2021 2020 2021 2020

Net sales to unrelated entities:

4 unchanged sentences

$ 566,370 $ 316,611 $ 1,191,976 $ 884,839

Segment income (loss) from operations

Segment operating income (loss):

$ 82,057 $ ( 18,155 ) $ 181,718 $ 21,877

2 unchanged sentences

Canada 633 ( 8,776 ) 6,861 ( 4,625 )

Total segment income from operations 125,669 50,255

Total segment operating income (loss) 93,223 ( 28,976 ) 218,892 21,279

Unallocated corporate expenses ( 58,228 ) ( 41,324 ) ( 113,417 ) ( 93,566 )

Interest income, net

Interest income (expense), net

598 ( 805 ) 876 1,008

Other non-operating income (expense), net

( 294 ) 935 ( 598 ) 2,673

Income before income tax

Income (loss) before income tax

$ 35,299 $ ( 70,170 ) $ 105,753 $ ( 68,606 )

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Concentrations

The Company had one customer that accounted for 10.2% and 14.3% of Accounts receivable, net on the Condensed Consolidated Balance Sheets as of March 31, 2021, and December 31, 2020, respectively.

No single customer accounted for 10% or more of Accounts receivable, net as of March 31, 2020.

No single customer accounted for 10% or more of Net sales in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2021 or 2020.

The Company had one customer that accounted for 12.5 % and 14.3 % of Accounts receivable, net on the Condensed Consolidated Balance Sheets as of June 30, 2021, and December 31, 2020, respectively.

The Company had two customers that accounted for 13.3 % and 12.9 % of Accounts receivable, net as of June 30, 2020.

No single customer accounted for 10% or more of Net sales in the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2021 and 2020.

NOTE 12—FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

8 unchanged sentences

Hedge effectiveness is generally determined by evaluating the ability of a hedging instrument's cumulative change in fair value to offset the cumulative change in the present value of expected cash flows on the underlying exposures.

For forward contracts, forward points are included in the fair value of the cash flow hedge on a prospective basis.

These costs or benefits are included in

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Accumulated other comprehensive income (loss) until the underlying hedge transaction is recognized in either Net sales or Cost of sales , at which time, the forward points will also be recognized as a component of Net income .

For forward contracts, forward points are included in the fair value of the cash flow hedge.

These costs or benefits are included in Accumulated other comprehensive income (loss) until the underlying hedge transaction is recognized in either Net sales or Cost of sales , at which time, the forward points will also be recognized as a component of Net income (loss) .

The Company also uses currency forward contracts not formally designated as hedges to manage the consolidated currency exchange rate risk associated with the remeasurement of non-functional currency denominated monetary assets and liabilities by subsidiaries that use United States dollars, euros, Canadian dollars, yen, won, or renminbi as their functional currency.

2 unchanged sentences

The following table presents the gross notional amount of outstanding derivative instruments:

(in thousands) March 31, 2021 December 31, 2020 March 31, 2020

(in thousands) June 30, 2021 December 31, 2020 June 30, 2020

Derivative instruments designated as cash flow hedges:

2 unchanged sentences

Currency forward contracts 258,377 326,280 223,500

At March 31, 2021, $ 3.2 million of deferred net losses on both outstanding and matured derivatives recorded in Other comprehensive loss are expected to be reclassified to Net income during the next twelve months as a result of underlying hedged transactions also being recorded in Net sa les or Cost of sales in the Condensed Consolidated Statements of Operations.

At June 30, 2021, $ 5.0 million of deferred net losses on both outstanding and matured derivatives recorded in Other comprehensive income (loss) are expected to be reclassified to Net income (loss) during the next twelve months as a result of underlying hedged transactions also being recorded in Net sa les or Cost of sales in the Condensed Consolidated Statements of Operations.

Actual amounts ultimately reclassified to Net sa les or Cost of sales in the Condensed Consolidated Statements of Comprehensive Income (Loss) are dependent on United States dollar exchange rates in effect against the euro, pound sterling, renminbi, Canadian dollar, and yen when outstanding derivative contracts mature.

At March 31, 2021, the Company's derivative contracts had a remaining maturity of less than four years .

The maximum net exposure to any single counterparty, which is generally limited to the aggregate unrealized gain of all contracts with that counterparty, was $ 2.7 million at March 31, 2021.

At June 30, 2021, the Company's derivative contracts had a remaining maturity of less than four years .

The maximum net exposure to any single counterparty, which is generally limited to the aggregate unrealized gain of all contracts with that counterparty, was $ 2.4 million at June 30, 2021.

All of the Company's derivative counterparties have credit ratings that are investment grade or higher.

1 unchanged sentence

The Company has not pledged assets or posted collateral as a requirement for entering into or maintaining derivative positions.

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The following table presents the balance sheet classification and fair value of derivative instruments:

(in thousands) Balance Sheet Classification March 31, 2021 December 31, 2020 March 31, 2020

(in thousands) Balance Sheet Classification June 30, 2021 December 31, 2020 June 30, 2020

Derivative instruments designated as cash flow hedges:

10 unchanged sentences

Currency forward contracts Accrued liabilities 1,830 2,268 524

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The following table presents the statement of operations effect and classification of derivative instruments:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) Statement Of Operations Classification 2021 2020 2021 2020

1 unchanged sentence

Derivative instruments designated as cash flow hedges:

Gain recognized in other comprehensive loss, net of tax

Gain (loss) recognized in other comprehensive income (loss), net of tax

— $ ( 3,903 ) $ ( 3,347 ) $ 5,376 $ 11,015

1 unchanged sentence

Net sales ( 111 ) 165 ( 11 ) 43

Gain reclassified from accumulated other comprehensive income (loss) to income for the effective portion

Gain (loss) reclassified from accumulated other comprehensive income (loss) to income for the effective portion

Cost of sales ( 348 ) 1,826 424 4,621

1 unchanged sentence

Other non-operating income (expense), net

— 6 106 1,117

Derivative instruments not designated as cash flow hedges:

Gain recognized in income

Gain (loss) recognized in income

Other non-operating income (expense), net

( 1,619 ) ( 319 ) ( 722 ) 1,330

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

NOTE 13—FAIR VALUE MEASURES

8 unchanged sentences

Level 2 instrument valuations are obtained from inputs, other than quoted market prices in active markets, that are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions.

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 are as follows:

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 are as follows:

(in thousands) Level 1 Level 2 Level 3 Total

1 unchanged sentence

Money market funds $ 159,897 $ — $ — $ 159,897

United States government treasury bills — 45,000 — 45,000

Short-term investments:

36 unchanged sentences

Total liabilities measured at fair value $ — $ 16,431 $ — $ 16,431

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Assets and liabilities measured at fair value on a recurring basis at March 31, 2020 are as follows:

Assets and liabilities measured at fair value on a recurring basis at June 30, 2020 are as follows:

(in thousands) Level 1 Level 2 Level 3 Total

1 unchanged sentence

Money market funds $ 151,823 $ — $ — $ 151,823

United States government treasury bills — 44,973 — 44,973

Available-for-sale short-term investments:

United States government treasury bills — 35,032 — 35,032

Other short-term investments:

Short-term investments:

Money market funds 51 — — 51

10 unchanged sentences

Total liabilities measured at fair value $ — $ 604 $ — $ 604

(1) Investments have remaining maturities of less than one year.

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-Q

Item 1. Financial Statements