What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-05-05 compared with 2021-11-04 · 141 added, 273 removed, 370 unchanged (53% of the section changed)

FINANCIAL STATEMENTS

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands) September 30,

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands) March 31,

2022 December 31,

2020 September 30,

2021 March 31,

Current Assets:

6 unchanged sentences

Total current assets 1,838,126 2,114,037 1,805,225

Property, plant and equipment, at cost, net of accumulated depreciation of $ 591,795 , $ 574,247 , and $ 550,097 , respectively

Property, plant and equipment, net of accumulated depreciation of $ 603,229 , $ 602,660 and $ 576,597 , respectively

290,070 291,088 300,063

21 unchanged sentences

10,000 shares authorized;

no ne issued and outstanding

none issued and outstanding

Common stock (no par value);

1 unchanged sentence

62,948 , 65,164 and 66,457 issued and outstanding, respectively

— 20,165 13,142

Retained earnings 1,828,074 1,993,628 1,850,415

3 unchanged sentences

See accompanying notes to condensed consolidated financial statements.

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 1

Notes to Condensed Consolidated Financial Statements (Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended March 31,

(in thousands, except per share amounts) 2022 2021

5 unchanged sentences

Operating income 83,666 70,480

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

Interest income, net 395 278

Other non-operating income (expense), net 44 ( 304 )

9 unchanged sentences

See accompanying notes to condensed consolidated financial statements.

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 2

Notes to Condensed Consolidated Financial Statements (Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended March 31,

(in thousands) 2022 2021

1 unchanged sentence

Other comprehensive income (loss):

Unrealized gains (losses) on derivative transactions (net of tax effects of $( 3,602 ), $ 3,995 , $( 5,787 ) and $ 1,371 , respectively)

Unrealized holding losses on available-for-sale securities (net of tax effects of $ 146 )

Unrealized holding gains (losses) on derivative transactions (net of tax effects of $ 656 and $( 3,368 ), respectively)

( 2,091 ) 8,563

1 unchanged sentence

( 2,256 ) ( 13,204 )

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

Other comprehensive income (loss) ( 4,798 ) ( 4,641 )

Comprehensive income $ 62,039 $ 51,259

See accompanying notes to condensed consolidated financial statements.

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30,

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 3

Notes to Condensed Consolidated Financial Statements (Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Three Months Ended March 31,

(in thousands) 2022 2021

1 unchanged sentence

Net income $ 66,837 $ 55,900

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

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

Depreciation, amortization, and non-cash lease expense 30,577 30,459

Provision for uncollectible accounts receivable ( 3,377 ) ( 7,849 )

Loss on disposal or impairment of property, plant and equipment and right-of-use assets 366 8,981

Loss on disposal or impairment of intangible assets, property, plant and equipment, and right-of-use assets 1,598 131

Deferred income taxes 2,746 4,577

10 unchanged sentences

Other liabilities 440 ( 18 )

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

Net cash provided by (used in) operating activities ( 33,788 ) 110,899

Cash flows from investing activities:

6 unchanged sentences

Repayments on credit facilities — ( 7,532 )

Payment of line of credit issuance fees — ( 2,096 )

Proceeds from issuance of common stock related to stock-based compensation 2,512 13,772

4 unchanged sentences

Net effect of exchange rate changes on cash 317 ( 5,268 )

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

Net increase (decrease) in cash and cash equivalents ( 328,164 ) 82,916

Cash and cash equivalents, beginning of period 763,404 790,725

4 unchanged sentences

Property, plant and equipment acquired through increase in liabilities $ 6,702 $ 2,832

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

See accompanying notes to condensed consolidated financial statements.

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

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, JUNE 30, 2021

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

Net income — — 100,563 — 100,563

Other comprehensive income (loss):

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

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

Cash dividends ($ 0.26 per share)

— — ( 17,122 ) — ( 17,122 )

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

79 3,767 — — 3,767

Stock-based compensation expense — 4,664 — — 4,664

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

BALANCE, SEPTEMBER 30, 2021

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

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, JUNE 30, 2020

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

Net income — — 62,751 — 62,751

Other comprehensive income (loss):

Unrealized losses on derivative transactions, net — — — ( 11,685 ) ( 11,685 )

Foreign currency translation adjustment, net — — — 11,175 11,175

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

62 2,656 — — 2,656

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

BALANCE, SEPTEMBER 30, 2020

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

See accompanying notes to condensed consolidated financial statements

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Nine Months Ended September 30, 2021

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 4

Notes to Condensed Consolidated Financial Statements (Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)

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

4 unchanged sentences

Other comprehensive income (loss):

Unrealized gains on derivative transactions, net — — — 15,564 15,564

Unrealized holding losses on available-for-sale securities, net — — — ( 451 ) ( 451 )

Unrealized holding losses on derivative transactions, net — — — ( 2,091 ) ( 2,091 )

Foreign currency translation adjustment, net — — — ( 2,256 ) ( 2,256 )

5 unchanged sentences

Repurchase of common stock ( 2,329 ) ( 4,057 ) ( 213,240 ) — ( 217,297 )

BALANCE, SEPTEMBER 30, 2021

Balance, March 31, 2022

62,948 $ — $ 1,828,074 $ ( 9,174 ) $ 1,818,900

Nine Months Ended September 30, 2020

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

4 unchanged sentences

Other comprehensive income (loss):

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

Unrealized holding gains on derivative transactions, net — — — 8,563 8,563

Foreign currency translation adjustment, net — — — ( 13,204 ) ( 13,204 )

5 unchanged sentences

Repurchase of common stock ( 109 ) ( 11,223 ) — — ( 11,223 )

BALANCE, SEPTEMBER 30, 2020

Balance, March 31, 2021

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

See accompanying notes to condensed consolidated financial statements.

COLUMBIA SPORTSWEAR COMPANY

INDEX TO NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 5

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 1 Basis of Presentation and Organization 7

Note 2 Revenues 8

Note 3 Intangible Assets, Net 10

Note 4 Short-Term Borrowings and Credit Lines 11

Note 5 Income Taxes 11

Note 3 Intangible Assets, Net and Goodwill 9

Note 4 Commitments and Contingencies 9

6 unchanged sentences

Note 11 Fair Value Measures 15

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 6

Notes to Condensed Consolidated Financial Statements (Unaudited)

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 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 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, 2022, December 31, 2021 and March 31, 2021, the results of operations for the three months ended March 31, 2022 and 2021, and cash flows for the three months ended March 31, 2022 and 2021.

The December 31, 2021 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, 2021.

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

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.

therefore, results of operations for the three months ended March 31, 2022 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.

2 unchanged sentences

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements include the accounts of Columbia Sportswear Company and its wholly owned subsidiaries.

Intercompany balances and transactions have been eliminated in consolidation.

The unaudited condensed consolidated financial statements include the accounts of the Company.

All significant intercompany balances and transactions have been eliminated in consolidation.

ESTIMATES AND ASSUMPTIONS

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results may differ from these estimates and assumptions.

Some of the more significant estimates relate to revenue recognition;

allowance for uncollectible accounts receivable;

obsolescence reserves for excess, close-out and slow moving inventory;

impairment of long-lived assets, intangible assets and goodwill;

and income taxes.

The Company's significant estimates relate to sales reserves, allowance for uncollectible accounts receivable, excess, close-out and slow-moving inventory, impairment of long-lived assets, intangible assets and goodwill, and income taxes.

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

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

2019-12 , Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes, which, among other things, removes specific exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods, as well as targeted impacts to the accounting for taxes under hybrid tax regimes.

At adoption, there was not a material impact to the Company's financial position, results of operations or cash flows.

RECENT ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

In November 2021, the FASB issued ASU No.

2021-10 (“ASU 2021-10”), Government Assistance (Topic 832):

Disclosures by Business Entities about Government Assistance, to increase transparency of government assistance including the disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements.

ASU 2021-10 is effective for annual periods beginning after December 15, 2021.

Early adoption is permitted.

The impact of this new standard will depend on the amount of future government assistance received, if any.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 7

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 2 — REVENUES

DISAGGREGATED REVENUE

As disclosed in Note 11, the Company has four geographic reportable segments:

As disclosed below in Note 9, the Company has four geographic reportable segments:

United States ("U.S."), Latin America and Asia Pacific ("LAAP"), Europe, Middle East and Africa ("EMEA") and Canada.

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 September 30, 2021

(in thousands)

LAAP EMEA Canada Total

Product category net sales

Apparel, Accessories and Equipment $ 406,187 $ 78,160 $ 75,399 $ 61,409 $ 621,155

Footwear 104,299 24,594 33,751 20,907 183,551

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

Channel net sales

Wholesale $ 292,357 $ 66,070 $ 93,899 $ 65,810 $ 518,136

Direct-to-consumer 218,129 36,684 15,251 16,506 286,570

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

Three Months Ended September 30, 2020

(in thousands)

LAAP EMEA Canada Total

Product category net sales

Apparel, Accessories and Equipment $ 332,713 $ 70,026 $ 66,160 $ 41,221 $ 510,120

Footwear 112,907 20,925 32,999 24,141 190,972

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

Channel net sales

Wholesale $ 282,850 $ 50,723 $ 85,074 $ 52,820 $ 471,467

Direct-to-consumer 162,770 40,228 14,085 12,542 229,625

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

Nine Months Ended September 30, 2021

Three Months Ended March 31, 2022

(in thousands)

6 unchanged sentences

Wholesale $ 247,509 $ 59,938 $ 75,294 $ 25,483 $ 408,224

Direct-to-consumer 628,788 139,017 36,274 36,751 840,830

DTC 254,385 61,805 19,423 17,673 353,286

Total $ 501,894 $ 121,743 $ 94,717 $ 43,156 $ 761,510

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Nine Months Ended September 30, 2020

Three Months Ended March 31, 2021

(in thousands)

6 unchanged sentences

Wholesale $ 200,881 $ 55,550 $ 57,764 $ 21,218 $ 335,413

Direct-to-consumer 445,681 121,596 32,882 28,442 628,601

DTC 207,781 56,427 13,001 12,984 290,193

Total $ 408,662 $ 111,977 $ 70,765 $ 34,202 $ 625,606

PERFORMANCE OBLIGATIONS

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.

For the three months ended March 31, 2022 and 2021, 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 is not material.

CONTRACT BALANCES

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

As of March 31, 2022, December 31, 2021 and March 31, 2021, contract liabilities included in Accrued liabilities on the unaudited Condensed Consolidated Balance Sheets, which consisted of obligations associated with the Company's gift card and customer loyalty programs, were not material.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 8

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 3 — INTANGIBLE ASSETS, NET AND GOODWILL

Intangible assets, net consisted of the following:

(in thousands)

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

Intangible assets subject to amortization:

March 31, 2022 December 31, 2021 March 31, 2021

Intangible assets with definite lives:

Patents and purchased technology $ 14,198 14,198 14,198

6 unchanged sentences

Net carrying amount 3,575 3,987 5,225

Intangible assets not subject to amortization 97,921 97,921 115,421

Intangible assets with indefinite lives 97,921 97,921 97,921

Intangible assets, net $ 101,496 $ 101,908 $ 103,146

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:

Amortization expense for intangible assets subject to amortization was $ 0.4 million for the three months ended March 31, 2022 and 2021.

The following table presents the remaining estimated annual amortization expense for the years 2022 through 2027:

(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

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 ¥ 700.0 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.

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 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 4 — COMMITMENTS AND CONTINGENCIES

The Company is involved in litigation and various legal matters arising in the normal course of business, including matters related to employment, retail, intellectual property, contractual agreements, lease agreements, and various regulatory compliance activities.

Management has considered facts related to legal and regulatory matters and opinions of counsel handling these matters, and does not believe the ultimate resolution of these proceedings will have a material adverse effect on the Company's financial position, results of operations or cash flows.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 9

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 5 — SHAREHOLDERS' EQUITY

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.

Since the inception of the Company's stock repurchase plan in 2004 through March 31, 2022, 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 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.

Under this program as of March 31, 2022, the Company had repurchased 30.8 million shares at an aggregate purchase price of $ 1,401.0 million and had $ 99.0 million remaining available.

During the three months ended March 31, 2022, the Company repurchased an aggregate of $ 217.3 million of common stock under this program.

In April 2022, the Company's Board of Directors approved a $ 500.0 million increase in share repurchase authorization.

NOTE 6 — 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)

The Company uses original issuance shares to satisfy share-based payments.

STOCK-BASED COMPENSATION EXPENSE

Stock-based compensation expense consisted of the following:

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

Three Months Ended March 31,

(in thousands) 2022 2021

3 unchanged sentences

STOCK OPTIONS

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.

During the three months ended March 31, 2022, the Company granted a total of 536,436 stock options at a weighted average grant date fair value of $ 18.36 per option.

As of March 31, 2022, unrecognized costs related to outstanding stock options totaled $ 19.2 million, before any related tax benefit.

These unrecognized costs related to stock options are expected to be recognized over a weighted average remaining period of 2.89 years.

RESTRICTED STOCK UNITS

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.

During the three months ended March 31, 2022, the Company granted 206,787 restricted stock units at a weighted average grant date fair value of $ 86.74 per restricted stock unit.

As of March 31, 2022, unrecognized costs related to outstanding restricted stock units totaled $ 30.6 million, before any related tax benefit.

These unrecognized costs related to restricted stock units are expected to be recognized over a weighted average remaining period of 2.95 years.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 10

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 7 — EARNINGS PER SHARE

3 unchanged sentences

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

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

Three Months Ended March 31,

(in thousands, except per share amounts)

2021 2020 2021 2020

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

3 unchanged sentences

64,591 66,885

Earnings per share of common stock:

Earnings per share:

Basic $ 1.04 $ 0.84

Diluted $ 1.03 $ 0.84

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

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Stock options, service-based restricted stock units, and performance-based restricted stock representing 1,230,716 and 693,403 shares of common stock for the three months ended March 31, 2022 and 2021, respectively, were outstanding but were excluded from the computation of diluted EPS because their effect would be anti-dilutive under the treasury stock method or because the shares were subject to performance conditions that had not been met.

NOTE 8 — 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 September 30, 2021:

(in thousands) Unrealized holding

gains (losses) on

derivative transactions Foreign currency

adjustments Total

Balance at June 30, 2021

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

Other comprehensive income (loss) before reclassifications 8,170 ( 11,422 ) ( 3,252 )

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 September 30, 2021

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

(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 September 30, 2020:

(in thousands) Unrealized gains (losses)

on available for

sale securities Unrealized holding

gains (losses) on

derivative transactions Foreign currency

Accumulated other comprehensive income (loss) on the unaudited 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) attributable to the Company:

(in thousands) Unrealized holding losses on available-for-sale securities Unrealized holding gains (losses) on derivative transactions Foreign currency

adjustments Total

Balance at June 30, 2020

Balance as of December 31, 2021

$ — $ 9,914 $ ( 14,290 ) $ ( 4,376 )

3 unchanged sentences

Net other comprehensive income (loss) during the year ( 451 ) ( 2,091 ) ( 2,256 ) ( 4,798 )

Balance at September 30, 2020

Balance as of March 31, 2022

$ ( 451 ) $ 7,823 $ ( 16,546 ) $ ( 9,174 )

(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.

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

Refer to Note 10 for further information regarding reclassifications.

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

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 11

Notes to Condensed Consolidated Financial Statements (Unaudited)

(in thousands) Unrealized holding

2 unchanged sentences

adjustments Total

Balance at December 31, 2020

Balance as of December 31, 2020

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

3 unchanged sentences

Net other comprehensive income (loss) during the year 8,563 ( 13,204 ) ( 4,641 )

Balance at September 30, 2021

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

(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.

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 nine months ended September 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 before reclassifications — 4,617 3,077 7,694

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

— ( 9,639 ) — ( 9,639 )

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

Balance at September 30, 2020

Balance as of 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.

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

Refer to Note 10 for further information regarding reclassifications.

7 unchanged sentences

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

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

Three Months Ended March 31,

(in thousands)

2021 2020 2021 2020

Net sales to unrelated entities:

11 unchanged sentences

Unallocated corporate expenses ( 67,152 ) ( 55,189 )

Interest income (expense), net

196 ( 280 ) 1,072 728

Interest income, net 395 278

Other non-operating income (expense), net 44 ( 304 )

201 ( 465 ) ( 397 ) 2,208

Income before income tax $ 84,105 $ 70,454

$ 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

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

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.

The Company had one customer that accounted for approximately 13.0 %, 14.3 % and 10.2 % of Accounts receivable, net as of March 31, 2022, December 31, 2021, and March 31, 2021, respectively.

No single customer accounted for 10% or more of Net sales for any of the three months ended March 31, 2022 and March 31, 2021, respectively.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 12

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 10 — FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

5 unchanged sentences

Subsidiaries that use European euros, Canadian dollars, Japanese yen, Chinese renminbi, or Korean won as their functional currency are primarily exposed to changes in functional currency equivalent cash flows from anticipated United States dollar inventory purchases.

Subsidiaries that use United States dollars and euros as their functional currency also have non-functional currency denominated sales for which the Company hedges the Canadian dollar and British pound.

Subsidiaries that use United States dollars and European euros as their functional currency also have non-functional currency denominated sales for which the Company hedges the Canadian dollar and British pound.

The Company manages these risks by using currency forward contracts formally designated and effective as cash flow hedges.

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.

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 .

Time value components ("forward points") for forward contracts are included in the fair value of the cash flow hedge.

These costs or benefits will be 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 .

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

(in thousands) March 31, 2022 December 31, 2021 March 31, 2021

Derivative instruments designated as cash flow hedges:

Currency forward contracts $ 536,790 $ 485,083 $ 484,176

Derivative instruments not designated as cash flow hedges:

Derivative instruments not designated as hedges:

Currency forward contracts 230,968 267,982 219,961

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.

As of March 31, 2022, $ 5.1 million of deferred net gains on both outstanding and matured derivatives recorded in Accumulated other comprehensive income (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, Cost of sales, or Other non-operating income (expense) in the unaudited Condensed Consolidated Statements of Operations.

When outstanding derivative contracts mature, actual amounts ultimately reclassified to Net sa les, Cost of sales, or Other non-operating income (expense) in the unaudited Condensed Consolidated Statements of Operations are dependent on United States dollar exchange rates in effect against the euro, pound sterling, renminbi, Canadian dollar, and yen as well as the euro exchange rate in effect against the pound sterling.

As of March 31, 2022, the Company's derivative contracts had a remaining maturity of less than three 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 $ 5.3 million as of March 31, 2022.

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)

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 13

Notes to Condensed Consolidated Financial Statements (Unaudited)

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

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

(in thousands) Balance Sheet

Classification March 31, 2022 December 31, 2021 March 31, 2021

Derivative instruments designated as cash flow hedges:

8 unchanged sentences

Currency forward contracts Prepaid expenses and other current assets 1,888 1,470 1,759

Currency forward contracts Other non-current assets 109 — —

Derivative instruments in liability positions:

Currency forward contracts Accrued liabilities 902 1,027 1,793

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 September 30, Nine Months Ended September 30,

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

Statement Of Operations Classification Three Months Ended March 31,

(in thousands) 2022 2021

Currency Forward Contracts:

Derivative instruments designated as cash flow hedges:

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

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

— $ ( 1,864 ) $ 9,279

1 unchanged sentence

Net sales ( 136 ) 100

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

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

Cost of sales 311 772

1 unchanged sentence

Other non-operating income (expense), net 222 106

345 60 451 1,177

Derivative instruments not designated as cash flow hedges:

Gain (loss) recognized in income

Gain recognized in income

Other non-operating income (expense), net 590 897

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

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 14

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 11 — 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 September 30, 2021 are as follows:

Assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 are as follows:

(in thousands) Level 1 Level 2 Level 3 Total

1 unchanged sentence

Money market funds $ 142 $ — $ — $ 142

Short-term investments:

Available-for-sale short-term investments:

Government treasury bills — 174,435 — 174,435

Other short-term investments:

Money market funds 145 — — 145

12 unchanged sentences

Total liabilities measured at fair value $ — $ 5,696 $ — $ 5,696

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 December 31, 2020 are as follows:

(1) Available-for-sale short-term investments have remaining maturities of less than one year.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 15

Notes to Condensed Consolidated Financial Statements (Unaudited)

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

(in thousands) Level 1 Level 2 Level 3 Total

1 unchanged sentence

Money market funds $ 2,677 $ — $ — $ 2,677

United States government treasury bills — 234,982 — 234,982

Available-for-sale short-term investments:

Government treasury bills — 130,168 — 130,168

Short-term investments:

13 unchanged sentences

Total liabilities measured at fair value $ — $ 3,890 $ — $ 3,890

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:

(1) Available-for-sale short-term investments have remaining maturities of less than one year.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 16

Notes to Condensed Consolidated Financial Statements (Unaudited)

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

(in thousands) Level 1 Level 2 Level 3 Total

1 unchanged sentence

Money market funds $ 344,886 $ — $ — $ 344,886

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

Short-term investments:

14 unchanged sentences

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