What changed in this filing

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Item 1. Financial Statements

2023-05-04 compared with 2022-11-03 · 131 added, 250 removed, 378 unchanged (50% of the section changed)

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands) September 30,

(in thousands) March 31,

2023 December 31,

2021 September 30,

2022 March 31,

Current Assets:

3 unchanged sentences

466,690 547,561 408,186

Inventories, net 1,056,905 645,379 720,865

Inventories 959,234 1,028,545 714,415

Prepaid expenses and other current assets 100,880 129,872 105,261

10 unchanged sentences

Current Liabilities:

Short-term borrowings $ 4,441 $ — $ —

Accounts payable $ 220,231 $ 322,472 $ 262,255

16 unchanged sentences

62,076 , 62,139 and 62,948 issued and outstanding, respectively

1,076 12,692 —

Retained earnings 1,981,287 1,953,734 1,828,074

3 unchanged sentences

See accompanying notes to unaudited condensed consolidated financial statements.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 1

Notes to Condensed Consolidated Financial Statements (Unaudited)

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 1

Notes to unaudited Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands, except per share amounts) 2023 2022

6 unchanged sentences

Interest income, net 3,283 395

Other non-operating income (expense), net ( 269 ) 201 ( 1,660 ) ( 397 )

Other non-operating income, net 850 44

Income before income tax 60,560 84,105

8 unchanged sentences

See accompanying notes to unaudited condensed consolidated financial statements.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 2

Notes to Condensed Consolidated Financial Statements (Unaudited)

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 2

Notes to unaudited Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands) 2023 2022

1 unchanged sentence

Other comprehensive income (loss):

Unrealized gains on derivative transactions (net of tax effects of $( 4,856 ), $( 3,602 ), $( 9,944 ) and $( 5,787 ), respectively)

Change in available-for-sale securities (net of tax effect of $ 146 )

Change in derivative transactions (net of tax effects of $ 2,710 and $ 656 , respectively)

( 5,421 ) ( 2,091 )

4 unchanged sentences

See accompanying notes to unaudited condensed consolidated financial statements.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 3

Notes to Condensed Consolidated Financial Statements (Unaudited)

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 3

Notes to unaudited Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands) 2023 2022

1 unchanged sentence

Net income $ 46,202 $ 66,837

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 30,583 30,577

Provision for uncollectible accounts receivable ( 90 ) ( 3,377 )

Loss on disposal or impairment of investments, property, plant and equipment, and right-of-use assets 2,455 366

Loss on disposal or impairment of property, plant and equipment, and right-of-use assets 287 1,598

Deferred income taxes ( 85 ) 2,746

2 unchanged sentences

Accounts receivable 82,927 81,220

Inventories, net ( 443,194 ) ( 173,761 )

Inventories 71,503 ( 71,108 )

Prepaid expenses and other current assets 23,101 ( 17,604 )

5 unchanged sentences

Other liabilities 1,860 440

Net cash used in operating activities ( 328,089 ) ( 15,638 )

Net cash provided by (used in) operating activities 78,002 ( 33,788 )

Cash flows from investing activities:

2 unchanged sentences

Capital expenditures ( 14,047 ) ( 12,885 )

Net cash provided by (used in) investing activities 88,462 ( 19,229 )

Net cash used in investing activities ( 111,680 ) ( 56,778 )

Cash flows from financing activities:

Proceeds from credit facilities 12,660 29,508

Repayments on credit facilities ( 8,133 ) ( 29,313 )

Payment of line of credit issuance fees ( 604 ) —

Proceeds from issuance of common stock related to stock-based compensation 2,678 2,512

8 unchanged sentences

Supplemental disclosures of cash flow information:

Cash paid during the year for income taxes $ 59,584 $ 87,709

Cash paid during the period for income taxes $ 30,775 $ 18,205

Supplemental disclosures of non-cash investing and financing activities:

Property, plant and equipment acquired through increase in liabilities $ 2,899 $ 6,702

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

See accompanying notes to unaudited condensed consolidated financial statements.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 4

Notes to Condensed Consolidated Financial Statements (Unaudited)

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 4

Notes to unaudited Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)

1 unchanged sentence

Outstanding Amount

Balance, June 30, 2022

62,091 $ — $ 1,753,450 $ ( 21,733 ) $ 1,731,717

Net income — — 111,750 — 111,750

Other comprehensive income (loss):

Unrealized gains on derivative transactions, net — — — 14,221 14,221

Foreign currency translation adjustment, net — — — ( 30,058 ) ( 30,058 )

Cash dividends ($ 0.30 per share)

— — ( 18,630 ) — ( 18,630 )

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

14 368 — — 368

Stock-based compensation expense — 5,435 — — 5,435

Balance, September 30, 2022

62,105 $ 5,803 $ 1,846,570 $ ( 37,570 ) $ 1,814,803

(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

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

Outstanding Amount

Balance, December 31, 2022

2 unchanged sentences

Other comprehensive income (loss) — — — ( 3,941 ) (3,941)

Unrealized gains on derivative transactions, net

— — — 27,938 27,938

Foreign currency translation adjustment, net — — — ( 61,132 ) ( 61,132 )

Cash dividends ($ 0.30 per share)

4 unchanged sentences

Repurchase of common stock ( 179 ) ( 15,753 ) — — ( 15,753 )

Balance, September 30, 2022

Excise taxes related to repurchase of common stock — (52) — — (52)

Balance, March 31, 2023

62,076 $ 1,076 $ 1,981,287 $ ( 34,578 ) $ 1,947,785

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 5

Notes to Condensed Consolidated Financial Statements (Unaudited)

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

4 unchanged sentences

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

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

Foreign currency translation adjustment, net — — — ( 19,396 ) ( 19,396 )

Cash dividends ($ 0.30 per share)

4 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

See accompanying notes to unaudited condensed consolidated financial statements.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 6

Notes to Condensed Consolidated Financial Statements (Unaudited)

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 5

Notes to unaudited Condensed Consolidated Financial Statements

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

2 unchanged sentences

Note 3 Intangible Assets, Net and Goodwill 9

Note 4 Short-Term Borrowings and Credit Lines 11

Note 4 Commitments and Contingencies 9

6 unchanged sentences

Note 11 Fair Value Measures 15

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 7

Notes to Condensed Consolidated Financial Statements (Unaudited)

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 6

Notes to unaudited Condensed Consolidated Financial Statements

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, 2022 , December 31, 2021 and September 30, 2021, the results of operations for the three and nine months ended September 30, 2022 and 2021, and cash flows for the nine months ended September 30, 2022 and 2021.

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, 2023, December 31, 2022 and March 31, 2022, the results of operations for the three months ended March 31, 2023 and 2022, and cash flows for the three months ended March 31, 2023 and 2022.

The December 31, 2022 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, 2022.

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, 2022 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, 2023 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.

9 unchanged sentences

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

RECENT ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED

In November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 | 8

Notes to Condensed Consolidated Financial Statements (Unaudited)

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 7

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 2 — REVENUES

3 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 September 30, 2022

(in thousands)

LAAP EMEA Canada Total

Product category net sales

Apparel, Accessories and Equipment $ 473,066 $ 84,769 $ 112,817 $ 55,690 $ 726,342

Footwear 134,008 30,559 40,713 23,437 228,717

Total $ 607,074 $ 115,328 $ 153,530 $ 79,127 $ 955,059

Channel net sales

Wholesale $ 368,040 $ 76,829 $ 139,027 $ 61,133 $ 645,029

Direct-to-consumer 239,034 38,499 14,503 17,994 310,030

Total $ 607,074 $ 115,328 $ 153,530 $ 79,127 $ 955,059

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

Nine Months Ended September 30, 2022

Three Months Ended March 31, 2023

(in thousands)

8 unchanged sentences

Total $ 517,475 $ 136,413 $ 108,289 $ 58,416 $ 820,593

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 9

Notes to Condensed Consolidated Financial Statements (Unaudited)

Nine Months Ended September 30, 2021

Three Months Ended March 31, 2022

(in thousands)

9 unchanged sentences

PERFORMANCE OBLIGATIONS

For the three and nine months ended September 30, 2022 and 2021, Net sales recognized from performance obligations related to prior periods were not material.

For the three months ended March 31, 2023 and 2022, 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, 2022, December 31, 2021 and September 30, 2021, the Company did not have contract assets and had an immaterial amount of contract liabilities included in Accrued liabilities on the unaudited Condensed Consolidated Balance Sheets.

As of March 31, 2023, December 31, 2022 and March 31, 2022, the Company did not have contract assets and had an immaterial amount of contract liabilities included in Accrued liabilities on the unaudited Condensed Consolidated Balance Sheets.

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 8

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 3 — INTANGIBLE ASSETS, NET AND GOODWILL

INTANGIBLE ASSETS, NET

Intangible assets, net consisted of the following:

(in thousands)

September 30, 2022 December 31, 2021 September 30, 2021

March 31, 2023 December 31, 2022 March 31, 2022

Intangible assets with definite lives:

9 unchanged sentences

Intangible assets, net $ 81,146 $ 81,558 $ 101,496

Amortization expense for intangible assets subject to amortization was $ 0.4 million for the three months ended September 30, 2022 and 2021, and was $ 1.2 million for the nine months ended September 30, 2022 and 2021.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 10

Notes to Condensed Consolidated Financial Statements (Unaudited)

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

Amortization expense for intangible assets subject to amortization was $0.4 million for the three months ended March 31, 2023 and 2022.

The following table presents the remaining estimated annual amortization expense of intangible assets with definite lives for the years 2023 through 2028:

(in thousands)

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, 2021.

DOMESTIC CREDIT FACILITY

In July 2022, the Company terminated its unsecured, committed revolving credit agreement, maturing on December 30, 2025, which provided for funding up to $ 500.0 million (the "Prior Domestic Credit Agreement") and, simultaneously, entered into a new credit agreement (the “Domestic Credit Agreement”).

The Domestic Credit Agreement provides for up to $500.0 million of borrowings pursuant to an unsecured, committed revolving credit facility (the “Credit Facility”), which is available for working capital and general corporate purposes, including a sublimit for the issuance of letters of credit.

This Credit Facility matures on July 12, 2027.

Interest, generally payable monthly, is based on the Company's option of either the secured overnight financing rate (“SOFR”) plus an applicable margin or a base rate.

Base rate is defined as the highest of the following, plus an applicable margin:

• the administrative agent's prime rate;

• the higher of the federal funds rate or overnight bank funding rate set by the Federal Reserve Bank of New York, plus 0.50%;

• the one-month SOFR plus 1.00%.

The applicable margin for SOFR loans will range from 1.00% to 1.50% based on the Company’s funded debt ratio.

The applicable margin for base rate loans will range from 0.00% to 0.50% based on the Company’s funded debt ratio.

A commitment fee ranging from 0.10% to 0.20% based on the Company's funded debt ratio is paid quarterly on the average daily unused commitment amount of the Credit Facility.

The Domestic Credit Agreement requires the Company to comply with a financial covenant to maintain a certain funded debt ratio.

In addition, the Domestic Credit Agreement includes customary covenants that, among other things, limit or restrict the ability of the Company and its subsidiaries to incur additional indebtedness and liens, engage in mergers, acquisitions and dispositions, and engage in transactions with affiliates, as well as restrict the amount of certain payments, including dividends and share buybacks in the event the Company's funded debt ratio is greater than a set amount.

As of September 30, 2022 , the Company was in compliance with all associated covenants and there was no balance outstanding under the Credit Facility.

In October 2022, the Company borrowed $25.0 million from the Credit Facility.

These borrowings accrue interest at a rate of 4.14% per annum.

OTHER SHORT-TERM BORROWINGS AND CREDIT LINES

As of September 30, 2022 , there was €4.5 million (approximately US$4.4 million) of borrowings outstanding under an overdraft facility utilized by the Company's European subsidiary, which was guaranteed by the Company.

These borrowings accrued interest at a rate of 3.75% per annum and were repaid in October 2022.

In October 2022, the Company borrowed €15.0 million (approximately US$15.0 million) from an unsecured, uncommitted credit facility utilized by the Company's European subsidiary, which is guaranteed by the Company.

These borrowings accrue interest at a rate of 2.10% per annum .

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 11

Notes to Condensed Consolidated Financial Statements (Unaudited)

There have been no changes to the Company's goodwill as described in Note 6 in Part II, Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

NOTE 4 — COMMITMENTS AND CONTINGENCIES

1 unchanged sentence

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 | Q1 2023 FORM 10-Q | 9

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 5 — SHAREHOLDERS' EQUITY

Since the inception of the Company's stock repurchase plan in 2004 through September 30, 2022 , the Company's Board of Directors has authorized the repurchase of $ 2.0 billion of the Company's common stock, including an additional $500 million approved by the Company’s Board of Directors at its regular board meeting in April 2022.

Since the inception of the Company's stock repurchase plan in 2004 through March 31, 2023, the Company's Board of Directors has authorized the repurchase of $ 2.0 billion of the Company's common stock, excluding excise tax.

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, 2022 , the Company had repurchased 31.7 million shares at an aggregate purchase price of $1,470.6 million and had $529.4 million remaining available.

During the nine months ended September 30, 2022 , the Company repurchased an aggregate of $ 286.9 million of the Company's common stock under this program.

The Company did not repurchase common stock during the three months ended September 30, 2022 .

Under this program as of March 31, 2023, the Company had repurchased 31.9 million shares at an aggregate purchase price of $ 1,486.4 million and had $ 513.6 million remaining available, excluding excise tax.

During the three months ended March 31, 2023, the Company repurchased an aggregate of $ 15.8 million of common stock under this program, excluding excise tax.

NOTE 6 — STOCK-BASED COMPENSATION

3 unchanged sentences

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) 2023 2022

3 unchanged sentences

STOCK OPTIONS

During the nine months ended September 30, 2022 , the Company granted a total of 551,134 stock options at a weighted average grant date fair value of $ 18.29 per option.

As of September 30, 2022 , unrecognized costs related to outstanding stock options totaled $ 14.9 million, before any related tax benefit.

During the three months ended March 31, 2023, the Company granted a total of 470,803 stock options at a weighted average grant date fair value of $ 22.80 per option.

As of March 31, 2023, unrecognized costs related to outstanding stock options totaled $ 19.9 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 2.72 years.

RESTRICTED STOCK UNITS

During the nine months ended September 30, 2022 , the Company granted 246,031 restricted stock units at a weighted average grant date fair value of $ 85.29 per restricted stock unit.

As of September 30, 2022 , unrecognized costs related to outstanding restricted stock units totaled $ 25.3 million, before any related tax benefit.

During the three months ended March 31, 2023, the Company granted 256,331 restricted stock units at a weighted average grant date fair value of $ 83.50 per restricted stock unit.

As of March 31, 2023, unrecognized costs related to outstanding restricted stock units totaled $ 36.3 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 3.01 years.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 12

Notes to Condensed Consolidated Financial Statements (Unaudited)

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 10

Notes to unaudited Condensed Consolidated Financial Statements

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)

2022 2021 2022 2021

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

6 unchanged sentences

Diluted $ 0.74 $ 1.03

Stock options, service-based restricted stock units, and performance-based restricted stock units representing 2,174,505 and 652,317 shares of common stock for the three months ended September 30, 2022 and 2021, respectively, and 1,738,354 and 810,092 shares of common stock for the nine months ended September 30, 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.

Anti-dilutive common shares (1)

(1) Common stock related to stock options and service-based restricted stock units, and performance-based restricted stock 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)

1 unchanged sentence

The following tables set forth the changes in Accumulated other comprehensive income (loss) :

(in thousands) Unrealized gains (losses) on derivative transactions Foreign currency

adjustments Total

Balance as of June 30, 2022

$ 23,631 $ ( 45,364 ) $ ( 21,733 )

Other comprehensive income (loss) before reclassifications 17,191 ( 30,058 ) ( 12,867 )

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

( 2,970 ) — ( 2,970 )

Net other comprehensive income (loss) during the year 14,221 ( 30,058 ) ( 15,837 )

Balance as of September 30, 2022

$ 37,852 $ ( 75,422 ) $ ( 37,570 )

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

Refer to Note 11 for further information regarding reclassifications.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 13

Notes to Condensed Consolidated Financial Statements (Unaudited)

(in thousands) Unrealized gains (losses) on derivative transactions Foreign currency

adjustments Total

Balance as of 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 as of 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 unaudited Condensed Consolidated Statements of Operations.

Refer to Note 11 for further information regarding reclassifications.

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

(in thousands) Derivative transactions Foreign currency

adjustments Total

4 unchanged sentences

( 3,743 ) — ( 3,743 )

Net other comprehensive income (loss) during the year — 27,938 ( 61,132 ) ( 33,194 )

Balance as of September 30, 2022

Net other comprehensive income (loss) during the period ( 5,421 ) 1,480 ( 3,941 )

Balance as of March 31, 2023

$ 16,369 $ ( 50,947 ) $ ( 34,578 )

(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.

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

Refer to Note 10 for further information regarding reclassifications .

(in thousands) Unrealized gains (losses) on derivative transactions Foreign currency

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 11

Notes to unaudited Condensed Consolidated Financial Statements

(in thousands) Available-for-

sale securities Derivative transactions Foreign currency

adjustments Total

1 unchanged sentence

$ — $ 9,914 $ ( 14,290 ) $ ( 4,376 )

Other comprehensive income (loss) before reclassifications 13,547 ( 19,396 ) ( 5,849 )

Other comprehensive loss before reclassifications ( 451 ) ( 1,864 ) ( 2,256 ) ( 4,571 )

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

— ( 227 ) — ( 227 )

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

Balance as of September 30, 2021

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

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 unaudited Condensed Consolidated Statements of Operations.

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

Refer to Note 10 for further information regarding reclassifications.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 14

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 9 — SEGMENT INFORMATION

4 unchanged sentences

Intersegment net sales and intersegment profits, which are recorded at a negotiated mark-up and eliminated in consolidation, are not material.

Unallocated corporate expenses consist of expenses incurred by centrally-managed departments, including global information services, certain supply chain functions, finance, human resources and legal, as well as executive compensation, unallocated benefit program expense, and other miscellaneous costs.

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

Three Months Ended September 30,

Nine Months Ended September 30,

Unallocated corporate expenses consist of expenses incurred by centrally-managed departmental functions, including consumer digital technology, certain supply chain functions, finance, human resources and legal, as well as executive compensation, unallocated benefit program expense, and other miscellaneous costs.

The following tables present financial information for the Company's reportable segments:

Three Months Ended March 31,

(in thousands)

2022 2021 2022 2021

Net sales to unrelated entities:

12 unchanged sentences

Interest income, net 3,283 395

Other non-operating income (expense), net ( 269 ) 201 ( 1,660 ) ( 397 )

Other non-operating income, net 850 44

Income before income tax $ 60,560 $ 84,105

CONCENTRATIONS

The Company did not have any customer that accounted for 10% or more of Accounts receivable, net as of September 30, 2022 .

The Company had one customer that accounted for approximately 14.3 % and 10.4 % of Accounts receivable, net as of December 31, 2021 and September 30, 2021, respectively.

The Company did not have any customer that accounted for 10% or more of Net sales for the three and nine months ended September 30, 2022 and September 30, 2021.

The Company had one customer that accounted for approximately 12.3 %, 13.8 % and 13.0 % of Accounts receivable, net as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively.

The Company did not have any customer that accounted for 10% or more of Net sales for the three months ended March 31, 2023 and March 31, 2022.

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 12

Notes to unaudited Condensed Consolidated Financial Statements

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 European euros as their functional currency also

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 15

Notes to Condensed Consolidated Financial Statements (Unaudited)

have non-functional currency denominated sales for which the Company hedges the Canadian dollar and British pound.

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 sterling.

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

2 unchanged sentences

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.

Non-functional currency denominated monetary assets and liabilities consist primarily of cash and cash equivalents, short-term investments, receivables, payables, deferred income taxes, and intercompany loans.

The gains and losses generated on these currency forward contracts not formally designated as hedges are expected to be largely offset in Other non-operating income (expense), net by the gains and losses generated from the remeasurement of the non-functional currency denominated monetary assets and liabilities.

Non-functional currency denominated monetary assets and liabilities consists of cash and cash equivalents, short-term investments, receivables, payables, deferred income taxes, and intercompany loans and dividends.

The gains and losses generated on these currency forward contracts not formally designated as hedges are expected to be largely offset in Other non-operating income, net by the gains and losses generated from the remeasurement of the non-functional currency denominated monetary assets and liabilities.

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

(in thousands) September 30, 2022 December 31, 2021 September 30, 2021

(in thousands) March 31, 2023 December 31, 2022 March 31, 2022

Derivative instruments designated as cash flow hedges:

2 unchanged sentences

Currency forward contracts 393,450 448,838 230,968

As of September 30, 2022 , $ 30.4 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), net 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), net 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 September 30, 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 $ 13.1 million as of September 30, 2022 .

As of March 31, 2023, $ 17.8 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, net 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, net 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, won, and yen as well as the euro exchange rate in effect against the pound sterling.

As of March 31, 2023, 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 $ 6.0 million as of March 31, 2023.

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.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 16

Notes to Condensed Consolidated Financial Statements (Unaudited)

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 13

Notes to unaudited Condensed Consolidated Financial Statements

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

(in thousands) Balance Sheet

Classification September 30, 2022 December 31, 2021 September 30, 2021

(in thousands) Balance Sheet Classification March 31, 2023 December 31, 2022 March 31, 2022

Derivative instruments designated as cash flow hedges:

8 unchanged sentences

Currency forward contracts Prepaid expenses and other current assets 890 3,027 1,888

Currency forward contracts Other non-current assets — — 109

Derivative instruments in liability positions:

Currency forward contracts Accrued liabilities 2,257 2,533 902

Currency forward contracts Other long-term liabilities — — 17

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

Classification Three Months Ended September 30,

Nine Months Ended September 30,

Classification Three Months Ended March 31,

(in thousands) 2023 2022

1 unchanged sentence

Derivative instruments designated as cash flow hedges:

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

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

— $ ( 1,678 ) $ ( 1,864 )

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

Net sales ( 28 ) ( 170 ) ( 204 ) ( 182 )

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

Net sales 191 ( 136 )

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

Cost of sales 5,762 311

Gain reclassified from accumulated other comprehensive income (loss) to income as a result of cash flow hedge discontinuance

Other non-operating income (expense), net

— 345 222 451

Gain (loss) reclassified from accumulated other comprehensive income (loss) to income as a result of cash flow hedge discontinuance

Other non-operating income, net

Derivative instruments not designated as cash flow hedges:

Gain recognized in income

Other non-operating income (expense), net

Gain (loss) recognized in income

Other non-operating income, net

( 1,187 ) 590

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 17

Notes to Condensed Consolidated Financial Statements (Unaudited)

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 14

Notes to unaudited Condensed Consolidated Financial Statements

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.

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 are as follows:

Assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 are as follows:

(in thousands) Level 1 Level 2 Level 3 Total

Cash equivalents:

Money market funds $ 106,092 $ — $ — $ 106,092

Government treasury bills — 49,695 — 49,695

Short-term investments:

Available-for-sale short-term investments:

Government treasury bills — 98,746 — 98,746

Other short-term investments:

Money market funds 284 — — 284

Mutual fund shares 482 — — 482

Other current assets:

Prepaid expenses and other current assets:

Derivative financial instruments — 17,716 — 17,716

Non-current assets:

Other non-current assets:

Money market funds 1,712 — — 1,712

7 unchanged sentences

Total liabilities measured at fair value $ — $ 6,675 $ — $ 6,675

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 18

Notes to Condensed Consolidated Financial Statements (Unaudited)

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

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 15

Notes to unaudited Condensed Consolidated Financial Statements

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

2 unchanged sentences

Money market funds $ 120,481 $ — $ — $ 120,481

Available-for-sale short-term investments:

Government treasury bills — 130,168 — 130,168

Short-term investments:

Other short-term investments:

1 unchanged sentence

Mutual fund shares 642 — — 642

Other current assets:

Prepaid and other current assets:

Derivative financial instruments — 23,333 — 23,333

Non-current assets:

Other non-current assets:

Money market funds 1,456 — — 1,456

7 unchanged sentences

Total liabilities measured at fair value $ — $ 5,552 $ — $ 5,552

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

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 19

Notes to Condensed Consolidated Financial Statements (Unaudited)

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

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 16

Notes to unaudited Condensed Consolidated Financial Statements

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

2 unchanged sentences

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

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-Q | 20

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

NON-RECURRING FAIR VALUE MEASUREMENTS

The Company measured the fair value of certain retail store long-lived assets consisting of property, plant and equipment, certain trademark intangible assets and goodwill, and lease ROU assets as part of impairment testing for the year ended December 31, 2022.

The inputs used to measure the fair value of these assets are primarily unobservable inputs and, as such, considered Level 3 fair value measurements.

Refer to Notes 5, 6 and 9 in Part II, Item 8 in the Annual Report on Form 10-K for discussion of impairment charges.

COLUMBIA SPORTSWEAR COMPANY | Q1 2023 FORM 10-Q | 17

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