What changed in this filing

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Item 1. Financial Statements

2021-11-04 compared with 2021-08-05 · 127 added, 111 removed, 516 unchanged (32% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands) June 30,

(in thousands) September 30,

2021 December 31,

2020 June 30,

2020 September 30,

Current Assets:

16 unchanged sentences

Current Liabilities:

Short-term borrowings $ — $ — $ 2,789

Accounts payable 241,119 206,697 164,332

24 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

Three Months Ended September 30, Nine Months Ended September 30,

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

4 unchanged sentences

Net licensing income 5,222 3,927 12,933 8,168

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

Operating income 133,461 85,643 238,936 13,356

Interest income (expense), net 196 ( 280 ) 1,072 728

Other non-operating income (expense), net 201 ( 465 ) ( 397 ) 2,208

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:

Income before income tax 133,858 84,898 239,611 16,292

Income tax expense ( 33,295 ) ( 22,147 ) ( 42,464 ) ( 4,035 )

Net income $ 100,563 $ 62,751 $ 197,147 $ 12,257

Earnings per share:

Basic $ 1.53 $ 0.95 $ 2.98 $ 0.18

5 unchanged sentences

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended September 30, Nine Months Ended September 30,

(in thousands) 2021 2020 2021 2020

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

Net income $ 100,563 $ 62,751 $ 197,147 $ 12,257

Other comprehensive income (loss):

3 unchanged sentences

( 11,422 ) 11,175 ( 19,396 ) 3,077

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

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

Other comprehensive loss ( 870 ) ( 510 ) ( 3,832 ) ( 1,945 )

Comprehensive income $ 99,693 $ 62,241 $ 193,315 $ 10,312

See accompanying notes to condensed consolidated financial statements

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30,

Nine Months Ended September 30,

(in thousands) 2021 2020

Cash flows from operating activities:

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

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

Net income $ 197,147 $ 12,257

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation, amortization, and non-cash lease expense 84,509 102,283

13 unchanged sentences

Other liabilities 1,359 8,077

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

Net cash used in operating activities ( 15,638 ) ( 197,960 )

Cash flows from investing activities:

13 unchanged sentences

Net effect of exchange rate changes on cash ( 4,946 ) 1,272

Net increase (decrease) in cash and cash equivalents 29,081 ( 211,216 )

Net decrease in cash and cash equivalents ( 191,246 ) ( 372,580 )

Cash and cash equivalents, beginning of period 790,725 686,009

4 unchanged sentences

Property, plant and equipment acquired through increase in liabilities $ 8,277 $ 4,774

Repurchases of common stock not settled $ 8,628 $ —

See accompanying notes to condensed consolidated financial statements

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

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

Outstanding Amount

BALANCE, MARCH 31, 2021

BALANCE, JUNE 30, 2021

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

Net income (loss) — — 40,684 — 40,684

Net income — — 100,563 — 100,563

Other comprehensive income (loss):

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

Unrealized gains on derivative transactions, net — — — 10,552 10,552

Foreign currency translation adjustment, net — — — ( 11,422 ) ( 11,422 )

5 unchanged sentences

Repurchase of common stock ( 726 ) ( 8,431 ) ( 63,911 ) — ( 72,342 )

BALANCE, JUNE 30, 2021

BALANCE, SEPTEMBER 30, 2021

65,501 $ — $ 1,883,343 $ ( 3,026 ) $ 1,880,317

Three Months Ended June 30, 2020

Three Months Ended September 30, 2020

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

Outstanding Amount

BALANCE, MARCH 31, 2020

BALANCE, JUNE 30, 2020

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

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

Net income — — 62,751 — 62,751

Other comprehensive income (loss):

4 unchanged sentences

Stock-based compensation expense — 5,090 — — 5,090

BALANCE, JUNE 30, 2020

BALANCE, SEPTEMBER 30, 2020

66,210 $ 13,142 $ 1,716,044 $ ( 6,370 ) $ 1,722,816

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

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

2 unchanged sentences

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

Net income (loss) — — 96,584 — 96,584

Net income — — 197,147 — 197,147

Other comprehensive income (loss):

7 unchanged sentences

Repurchase of common stock ( 1,254 ) ( 53,266 ) ( 73,942 ) — ( 127,208 )

BALANCE, JUNE 30, 2021

BALANCE, SEPTEMBER 30, 2021

65,501 $ — $ 1,883,343 $ ( 3,026 ) $ 1,880,317

Six Months Ended June 30, 2020

Nine Months Ended September 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 (loss) — — ( 50,494 ) — ( 50,494 )

Net income — — 12,257 — 12,257

Other comprehensive income (loss):

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

Unrealized losses on derivative transactions, net — — — ( 5,022 ) ( 5,022 )

Foreign currency translation adjustment, net — — — 3,077 3,077

5 unchanged sentences

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

BALANCE, JUNE 30, 2020

BALANCE, SEPTEMBER 30, 2020

66,210 $ 13,142 $ 1,716,044 $ ( 6,370 ) $ 1,722,816

10 unchanged sentences

Note 8 Stock-Based Compensation 11

Note 9 Earnings (Loss) Per Share 12

Note 9 Earnings Per Share 12

Note 10 Accumulated Other Comprehensive Income (Loss) 13

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 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 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 September 30, 2021, December 31, 2020 and September 30, 2020, the results of operations for the three and nine months ended September 30, 2021 and 2020, and cash flows for the nine months ended September 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 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.

therefore, results of operations for the three and nine months ended September 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.

26 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 June 30, 2021

Three Months Ended September 30, 2021

(in thousands)

8 unchanged sentences

Total $ 510,486 $ 102,754 $ 109,150 $ 82,316 $ 804,706

Three Months Ended June 30, 2020

Three Months Ended September 30, 2020

(in thousands)

8 unchanged sentences

Total $ 445,620 $ 90,951 $ 99,159 $ 65,362 $ 701,092

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

(in thousands)

11 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Six Months Ended June 30, 2020

Nine Months Ended September 30, 2020

(in thousands)

9 unchanged sentences

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.

For the three and nine months ended September 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.

As of September 30, 2021, December 31, 2020 and September 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)

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

September 30, 2021 December 31, 2020 September 30, 2020

Intangible assets subject to amortization:

9 unchanged sentences

Intangible assets, net $ 102,321 $ 103,558 $ 121,471

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.

Amortization expense for intangible assets subject to amortization was $ 0.4 million and $ 0.6 million for the three months ended September 30, 2021 and 2020, respectively, and was $ 1.2 million and $ 2.1 million for the nine months ended September 30, 2021, and 2020, respectively.

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

5 unchanged sentences

Except as disclosed below, there have been no significant changes to the Company's short-term borrowings and credit lines as described in Note 7 in the Company's Annual Report on Form 10-K for the year ended December 31, 2020.

At the beginning of 2021, the Company's Japanese subsidiary had two separate unsecured and uncommitted overdraft facilities guaranteed by the Company providing for borrowings up to a maximum of ¥ 1.5 billion and US$ 7.0 million.

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

In September 2021, the Company's Japanese subsidiary entered into an agreement which replaced the ¥ 1.5 billion overdraft facility with a ¥ 1.0 billion overdraft facility.

At September 30, 2021, the combined available borrowings of the three lines was approximately US$ 18.8 million.

Borrowings under the ¥ 1.0 billion and ¥ 400.0 million overdraft facilities accrue interest at the Tokyo Interbank Offered Rate plus 50 basis points and borrowings under the ¥ 700.0 million overdraft facility accrue interest at 150 basis points.

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

At the beginning of 2021, the Company's Chinese subsidiary had available an unsecured and uncommitted line of credit providing for borrowings up to a maximum of RMB 140.0 million and an unsecured and uncommitted overdraft and clean advance facility, guaranteed by the Company, that provided for borrowings of advances or overdrafts up to a maximum of US$ 20.0 million.

In September 2021, the Company's Chinese subsidiary did not renew the agreement for the RMB 140.0 million line of credit.

At September 30, 2021, the available borrowings of the remaining facility was US$ 20.0 million.

Borrowings under this facility accrue interest on advances of RMB at 4% or advances of USD at 1.62% per annum.

As of September 30, 2021, there was no balance outstanding under the facility.

NOTE 5—INCOME TAXES

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.

For the three months ended September 30, 2021 and 2020, the Company's effective income tax rates were 24.9 % and 26.1 %, respectively.

The decrease in the effective income tax rate for the three months ended September 30, 2021 was primarily due to the mix of book income or loss among jurisdictions.

For the nine months ended September 30, 2021 and 2020, the Company's effective income tax rates were 17.7 % and 24.8 %, respectively.

The decrease in the effective income tax rate for the nine months ended September 30, 2021 was primarily due to the non-recurring decrease in accrued foreign withholding taxes and the mix of book income or loss among jurisdictions.

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 June 30, 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 September 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 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.

Under this program, as of September 30, 2021, the Company had repurchased 28.1 million shares at an aggregate purchase price of $ 1,145.0 million and has $ 355.0 million remaining available.

During the three and nine months ended September 30, 2021, the Company purchased an aggregate of $ 72.3 million and $ 127.2 million, respectively, of the Company's common stock under this program.

NOTE 8—STOCK-BASED COMPENSATION

The Company's Stock Incentive Plan allows for grants of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, and other stock-based or cash-based awards.

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Stock-Based Compensation Expense

Stock-based compensation expense consisted of the following:

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

Three Months Ended September 30, Nine Months Ended September 30,

(in thousands) 2021 2020 2021 2020

3 unchanged sentences

Stock Options

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

COLUMBIA SPORTSWEAR COMPANY

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.

During the nine months ended September 30, 2021, the Company granted a total of 545,976 stock options at a weighted average grant date fair value of $ 17.55 per share.

As of September 30, 2021, unrecognized costs related to outstanding stock options totaled $ 13.0 million, before any related tax benefit.

As of September 30, 2021, unrecognized costs related to stock options are expected to be recognized over a weighted average period of 2.56 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.

During the nine months ended September 30, 2021, the Company granted 175,556 restricted stock units at a weighted average grant date fair value of $ 96.06 per share.

As of September 30, 2021, unrecognized costs related to outstanding restricted stock units totaled $ 22.8 million, before any related tax benefit.

As of September 30, 2021, unrecognized costs related to restricted stock units are expected to be recognized over a weighted average period of 2.33 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.

1 unchanged sentence

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

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

Three Months Ended September 30, Nine Months Ended September 30,

(in thousands, except per share amounts)

2021 2020 2021 2020

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

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

65,862 66,179 66,182 66,427

Effect of dilutive stock options and restricted stock units 404 358 491 380

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

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

66,266 66,537 66,673 66,807

Earnings (loss) per share of common stock:

Earnings per share of common stock:

Basic $ 1.53 $ 0.95 $ 2.98 $ 0.18

Diluted $ 1.52 $ 0.94 $ 2.96 $ 0.18

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.

Stock options, service-based restricted stock units, and performance-based restricted stock representing 652,317 and 810,092 shares of common stock for the three and nine months ended September 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 1,156,073 and 1,282,086 shares of common stock for the three and nine months ended September 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.

Index to Notes to Consolidated Financial Statements

1 unchanged sentence

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:

NOTE 10—ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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

(in thousands) Unrealized holding

2 unchanged sentences

adjustments Total

Balance at March 31, 2021

Balance at June 30, 2021

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

1 unchanged sentence

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

2,382 — 2,382

Net other comprehensive income (loss) during the year 10,552 ( 11,422 ) ( 870 )

Balance at June 30, 2021

Balance at September 30, 2021

$ 6,195 $ ( 9,221 ) $ ( 3,026 )

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

(1) Amounts reclassified are recorded in Net sales, Cost of sales, or Other non-operating income (expense) 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 June 30, 2020:

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

(in thousands) Unrealized gains (losses)

4 unchanged sentences

adjustments Total

Balance at March 31, 2020

Balance at June 30, 2020

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

3 unchanged sentences

Net other comprehensive income (loss) during the year — ( 11,685 ) 11,175 ( 510 )

Balance at June 30, 2020

Balance at September 30, 2020

$ ( 4 ) $ 4,460 $ ( 10,826 ) $ ( 6,370 )

1 unchanged sentence

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:

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

(in thousands) Unrealized holding

8 unchanged sentences

Net other comprehensive income (loss) during the year 15,564 ( 19,396 ) ( 3,832 )

Balance at June 30, 2021

Balance at September 30, 2021

$ 6,195 $ ( 9,221 ) $ ( 3,026 )

4 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:

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

(in thousands) Unrealized gains (losses)

6 unchanged sentences

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

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

Other comprehensive income before reclassifications — 4,617 3,077 7,694

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

1 unchanged sentence

Net other comprehensive income (loss) during the year — ( 5,022 ) 3,077 ( 1,945 )

Balance at June 30, 2020

Balance at September 30, 2020

$ ( 4 ) $ 4,460 $ ( 10,826 ) $ ( 6,370 )

9 unchanged sentences

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

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

Three Months Ended September 30, Nine Months Ended September 30,

(in thousands)

6 unchanged sentences

$ 804,706 $ 701,092 $ 1,996,682 $ 1,585,931

Segment operating income (loss):

Segment operating income:

$ 139,101 $ 96,577 $ 320,819 $ 118,454

2 unchanged sentences

Canada 22,849 19,767 29,710 15,142

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

Total segment operating income 195,793 140,039 414,685 161,318

Unallocated corporate expenses ( 62,332 ) ( 54,396 ) ( 175,749 ) ( 147,962 )

3 unchanged sentences

201 ( 465 ) ( 397 ) 2,208

Income (loss) before income tax

Income before income tax

$ 133,858 $ 84,898 $ 239,611 $ 16,292

Concentrations

The Company had one customer that accounted for 10.4 %, 14.3 % and 11.4 % of Accounts receivable, net on the Condensed Consolidated Balance Sheets as of September 30, 2021, December 31, 2020, and September 30, 2020, respectively.

Index to Notes to Consolidated Financial Statements

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Concentrations

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.

customer accounted for 10% or more of Net sales in the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2021 and 2020.

NOTE 12—FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

9 unchanged sentences

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

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

Derivative instruments designated as cash flow hedges:

2 unchanged sentences

Currency forward contracts 247,134 326,280 224,573

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 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.

At September 30, 2021, $ 0.3 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.

Actual amounts ultimately reclassified to Net sa les or Cost of sales in the Condensed Consolidated Statements of Comprehensive Income 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 September 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 $ 3.5 million at September 30, 2021.

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

5 unchanged sentences

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

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

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

Derivative instruments designated as cash flow hedges:

8 unchanged sentences

Currency forward contracts Prepaid expenses and other current assets 1,633 1,650 2,211

Currency forward contracts Other non-current assets 109 — —

Derivative instruments in liability positions:

Currency forward contracts Accrued liabilities 251 2,268 381

Currency forward contracts Other long-term liabilities 17 — —

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 June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

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

1 unchanged sentence

Derivative instruments designated as cash flow hedges:

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

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

— $ 8,170 $ ( 6,398 ) $ 13,547 $ 4,617

10 unchanged sentences

1,077 ( 1,795 ) 355 ( 465 )

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.

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

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 September 30, 2021 are as follows:

(in thousands) Level 1 Level 2 Level 3 Total

39 unchanged sentences

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

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

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 September 30, 2020 are as follows:

(in thousands) Level 1 Level 2 Level 3 Total

13 unchanged sentences

Derivative financial instruments $ — $ 2,415 $ — $ 2,415

Other long-term liabilities:

Derivative financial instruments — 1,186 — 1,186

Total liabilities measured at fair value $ — $ 3,601 $ — $ 3,601

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