What changed in this filing

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Item 1. Financial Statements

2023-08-08 compared with 2023-05-04 · 159 added, 72 removed, 437 unchanged (35% of the section changed)

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands) March 31,

(in thousands) June 30,

2023 December 31,

2022 March 31,

2022 June 30,

Current Assets:

34 unchanged sentences

61,358 , 62,139 and 62,091 issued and outstanding, respectively

1,076 12,692 —

Retained earnings 1,915,990 1,953,734 1,753,450

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except per share amounts) 2023 2022 2023 2022

6 unchanged sentences

Interest income, net 3,506 499 6,789 894

Other non-operating income, net 850 44

Other non-operating income (expense), net ( 185 ) ( 1,435 ) 665 ( 1,391 )

Income before income tax 9,550 7,837 70,110 91,942

11 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands) 2023 2022 2023 2022

7 unchanged sentences

Other comprehensive income (loss) ( 6,754 ) ( 12,559 ) ( 10,695 ) ( 17,357 )

Comprehensive income $ 42,261 $ 62,039

Comprehensive income (loss) $ 1,596 $ ( 5,396 ) $ 43,857 $ 56,643

See accompanying notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands) 2023 2022

22 unchanged sentences

Capital expenditures ( 22,803 ) ( 28,983 )

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

Net cash provided by (used in) investing activities ( 89,933 ) 101,865

Cash flows from financing activities:

Proceeds from credit facilities 837 —

Repayments on credit facilities ( 837 ) —

Proceeds from issuance of common stock related to stock-based compensation 4,624 4,076

17 unchanged sentences

Outstanding Amount

Balance, December 31, 2022

Balance, March 31, 2023

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

8 unchanged sentences

Excise taxes related to repurchase of common stock — ( 579 ) — — ( 579 )

Balance, June 30, 2023

61,358 $ — $ 1,915,990 $ ( 41,332 ) $ 1,874,658

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

Outstanding Amount

Balance, March 31, 2022

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

Net income — — 7,163 — 7,163

Other comprehensive income (loss) — — — ( 12,559 ) ( 12,559 )

Cash dividends ($ 0.30 per share)

— — ( 18,775 ) — ( 18,775 )

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

49 1,498 — — 1,498

Stock-based compensation expense — 5,133 — — 5,133

Repurchase of common stock ( 906 ) ( 6,631 ) ( 63,012 ) — ( 69,643 )

Balance, June 30, 2022

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

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

10 unchanged sentences

Repurchase of common stock ( 954 ) ( 23,493 ) ( 55,197 ) — ( 78,690 )

Balance, March 31, 2022

Excise taxes related to repurchase of common stock — ( 631 ) — — ( 631 )

Balance, June 30, 2023

61,358 $ — $ 1,915,990 $ ( 41,332 ) $ 1,874,658

COLUMBIA SPORTSWEAR COMPANY | Q2 2023 FORM 10-Q | 5

Notes to unaudited Condensed Consolidated Financial Statements

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

Outstanding Amount

Balance, December 31, 2021

65,164 $ — $ 1,993,628 $ ( 4,376 ) $ 1,989,252

Net income — — 74,000 — 74,000

Other comprehensive income (loss) — — — ( 17,357 ) ( 17,357 )

Cash dividends ($ 0.60 per share)

— — ( 37,926 ) — ( 37,926 )

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

162 52 — — 52

Stock-based compensation expense — 10,636 — — 10,636

Repurchase of common stock ( 3,235 ) ( 10,688 ) ( 276,252 ) — ( 286,940 )

Balance, June 30, 2022

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

See accompanying notes to unaudited condensed consolidated financial statements.

16 unchanged sentences

NOTE 1 — BASIS OF PRESENTATION AND ORGANIZATION

The accompanying unaudited condensed consolidated financial statements have been prepared by the management of Columbia Sportswear Company (together with its wholly owned subsidiaries, the "Company") and, in the opinion of management, include all normal recurring material adjustments necessary to present fairly the Company's financial position as of March 31, 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 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, 2023, December 31, 2022 and June 30, 2022, the results of operations for the three and six months ended June 30, 2023 and 2022, and cash flows for the six months ended June 30, 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 months ended March 31, 2023 are not necessarily indicative of results to be expected for other quarterly periods or for the full year.

therefore, results of operations for the three and six months ended June 30, 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.

16 unchanged sentences

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 March 31, 2023

The following tables disaggregate the Company's reportable 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, 2023

(in thousands)

8 unchanged sentences

Total $ 399,109 $ 93,329 $ 100,854 $ 27,641 $ 620,933

Three Months Ended March 31, 2022

Three Months Ended June 30, 2022

(in thousands)

8 unchanged sentences

Total $ 412,485 $ 72,825 $ 57,542 $ 35,211 $ 578,063

Six Months Ended June 30, 2023

(in thousands)

LAAP EMEA Canada Total

Product category net sales

Apparel, Accessories and Equipment $ 741,453 $ 169,083 $ 144,228 $ 66,803 $ 1,121,567

Footwear 175,131 60,659 64,915 19,254 319,959

Total $ 916,584 $ 229,742 $ 209,143 $ 86,057 $ 1,441,526

Channel net sales

Wholesale $ 444,702 $ 112,825 $ 172,212 $ 51,031 $ 780,770

Direct-to-consumer 471,882 116,917 36,931 35,026 660,756

Total $ 916,584 $ 229,742 $ 209,143 $ 86,057 $ 1,441,526

COLUMBIA SPORTSWEAR COMPANY | Q2 2023 FORM 10-Q | 9

Notes to unaudited Condensed Consolidated Financial Statements

Six Months Ended June 30, 2022

(in thousands)

LAAP EMEA Canada Total

Product category net sales

Apparel, Accessories and Equipment $ 733,820 $ 140,304 $ 100,811 $ 59,326 $ 1,034,261

Footwear 180,559 54,264 51,448 19,041 305,312

Total $ 914,379 $ 194,568 $ 152,259 $ 78,367 $ 1,339,573

Channel net sales

Wholesale $ 449,389 $ 88,246 $ 122,553 $ 47,932 $ 708,120

Direct-to-consumer 464,990 106,322 29,706 30,435 631,453

Total $ 914,379 $ 194,568 $ 152,259 $ 78,367 $ 1,339,573

PERFORMANCE OBLIGATIONS

For the three months ended March 31, 2023 and 2022, Net sales recognized from performance obligations related to prior periods were not material.

For the three and six months ended June 30, 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 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

As of June 30, 2023, December 31, 2022 and June 30, 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.

NOTE 3 — INTANGIBLE ASSETS, NET AND GOODWILL

2 unchanged sentences

(in thousands)

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

June 30, 2023 December 31, 2022 June 30, 2022

Intangible assets with definite lives:

9 unchanged sentences

Intangible assets, net $ 80,733 $ 81,558 $ 101,083

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

Amortization expense for intangible assets subject to amortization was $ 0.4 million for the three months ended June 30, 2023 and 2022, and was $ 0.8 million for the six months ended June 30, 2023 and 2022.

COLUMBIA SPORTSWEAR COMPANY | Q2 2023 FORM 10-Q | 10

Notes to unaudited Condensed Consolidated Financial Statements

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

4 unchanged sentences

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 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.

Since the inception of the Company's stock repurchase plan in 2004 through June 30, 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 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.

Under this program as of June 30, 2023, the Company had repurchased 32.7 million shares at an aggregate purchase price of $ 1,549.3 million and had $ 450.7 million remaining available, excluding excise tax.

During the three and six months ended June 30, 2023, the Company repurchased an aggregate of $ 62.9 million and $ 78.7 million, respectively, of common stock under this program, excluding excise tax.

COLUMBIA SPORTSWEAR COMPANY | Q2 2023 FORM 10-Q | 11

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 6 — STOCK-BASED COMPENSATION

3 unchanged sentences

Stock-based compensation expense consisted of the following:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands) 2023 2022 2023 2022

3 unchanged sentences

STOCK OPTIONS

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.

During the six months ended June 30, 2023, the Company granted a total of 485,806 stock options at a weighted average grant date fair value of $ 22.71 per option.

As of June 30, 2023, unrecognized costs related to outstanding stock options totaled $ 16.8 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 2.51 years.

RESTRICTED STOCK UNITS

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.

During the six months ended June 30, 2023, the Company granted 281,154 restricted stock units at a weighted average grant date fair value of $ 82.81 per restricted stock unit.

As of June 30, 2023, unrecognized costs related to outstanding restricted stock units totaled $ 32.6 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 2.81 years.

6 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except per share amounts)

2023 2022 2023 2022

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

7 unchanged sentences

Anti-dilutive common shares (1)

2,213 2,061 1,789 1,709

(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.

4 unchanged sentences

adjustments Total

Balance as of December 31, 2022

Balance as of March 31, 2023

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

3 unchanged sentences

Net other comprehensive income (loss) during the period ( 726 ) ( 6,028 ) ( 6,754 )

Balance as of March 31, 2023

Balance as of June 30, 2023

$ 15,643 $ ( 56,975 ) $ ( 41,332 )

(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.

(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.

1 unchanged sentence

Notes to unaudited Condensed Consolidated Financial Statements

(in thousands) Available-for-sale securities Derivative transactions Foreign currency

adjustments Total

Balance as of March 31, 2022

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

Other comprehensive income (loss) before reclassifications — 16,453 ( 28,818 ) ( 12,365 )

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

451 ( 645 ) — ( 194 )

Net other comprehensive income (loss) during the period 451 15,808 ( 28,818 ) ( 12,559 )

Balance as of June 30, 2022

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

(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.

(in thousands) Derivative transactions Foreign currency

adjustments Total

Balance as of December 31, 2022

$ 21,790 $ ( 52,427 ) $ ( 30,637 )

Other comprehensive income (loss) before reclassifications 726 ( 4,548 ) ( 3,822 )

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

( 6,873 ) — ( 6,873 )

Net other comprehensive income (loss) during the period ( 6,147 ) ( 4,548 ) ( 10,695 )

Balance as of June 30, 2023

$ 15,643 $ ( 56,975 ) $ ( 41,332 )

(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 .

(in thousands) Available-for-

3 unchanged sentences

$ — $ 9,914 $ ( 14,290 ) $ ( 4,376 )

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

Other comprehensive income (loss) before reclassifications ( 451 ) 14,589 ( 31,074 ) ( 16,936 )

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

451 ( 872 ) — ( 421 )

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

Balance as of March 31, 2022

Net other comprehensive income (loss) during the period — 13,717 ( 31,074 ) ( 17,357 )

Balance as of June 30, 2022

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

(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.

(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.

6 unchanged sentences

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.

COLUMBIA SPORTSWEAR COMPANY | Q2 2023 FORM 10-Q | 14

Notes to unaudited Condensed Consolidated Financial Statements

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

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

2023 2022 2023 2022

Net sales to unrelated entities:

4 unchanged sentences

$ 620,933 $ 578,063 $ 1,441,526 $ 1,339,573

Segment operating income

Segment operating income (loss):

$ 55,058 $ 67,346 $ 136,658 $ 180,522

5 unchanged sentences

Interest income, net 3,506 499 6,789 894

Other non-operating income, net 850 44

Other non-operating income (expense), net ( 185 ) ( 1,435 ) 665 ( 1,391 )

Income before income tax $ 9,550 $ 7,837 $ 70,110 $ 91,942

CONCENTRATIONS

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

The Company had one customer that accounted for approximately 14.6 %, 13.8 % and 12.3 % of Accounts receivable, net as of June 30, 2023, December 31, 2022 and June 30, 2022, respectively.

The Company did not have any customer that accounted for 10% or more of Net sales for the three and six months ended June 30, 2023 and June 30, 2022.

NOTE 10 — FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

11 unchanged sentences

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, renminbi, or won as their functional currency.

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.

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

COLUMBIA SPORTSWEAR COMPANY | Q2 2023 FORM 10-Q | 15

Notes to unaudited Condensed Consolidated Financial Statements

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 (expense), 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) March 31, 2023 December 31, 2022 March 31, 2022

(in thousands) June 30, 2023 December 31, 2022 June 30, 2022

Derivative instruments designated as cash flow hedges:

2 unchanged sentences

Currency forward contracts $ 465,182 $ 448,838 $ 239,676

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.

As of June 30, 2023, $ 18.1 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), 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, won, and yen as well as the euro exchange rate in effect against the pound sterling.

As of June 30, 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 $ 7.1 million as of June 30, 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 | 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 March 31, 2023 December 31, 2022 March 31, 2022

(in thousands) Balance Sheet Classification June 30, 2023 December 31, 2022 June 30, 2022

Derivative instruments designated as cash flow hedges:

10 unchanged sentences

Currency forward contracts Accrued liabilities 1,936 2,533 1,410

COLUMBIA SPORTSWEAR COMPANY | Q2 2023 FORM 10-Q | 16

Notes to unaudited Condensed Consolidated Financial Statements

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

Classification Three Months Ended March 31,

Classification Three Months Ended June 30,

Six Months Ended June 30,

(in thousands) 2023 2022 2023 2022

1 unchanged sentence

Derivative instruments designated as cash flow hedges:

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

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

— $ 2,404 $ 16,453 $ 726 $ 14,589

4 unchanged sentences

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

Other non-operating income, net

Other non-operating income (expense), net

5 — ( 2 ) 222

Derivative instruments not designated as cash flow hedges:

Gain (loss) recognized in income

Other non-operating income, net

Other non-operating income (expense), net

( 93 ) 707 ( 1,280 ) 1,297

11 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 March 31, 2023 are as follows:

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2023 are as follows:

(in thousands) Level 1 Level 2 Level 3 Total

1 unchanged sentence

Money market funds $ 60,565 $ — $ — $ 60,565

Government treasury bills — 49,695 — 49,695

Short-term investments:

24 unchanged sentences

Short-term investments:

Other short-term investments:

Money market funds 80 — — 80

Mutual fund shares 642 — — 642

Prepaid and other current assets:

Prepaid expenses and other current assets:

Derivative financial instruments — 23,333 — 23,333

11 unchanged sentences

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:

Assets and liabilities measured at fair value on a recurring basis as of June 30, 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 81 — — 81

Mutual fund shares 1,027 — — 1,027

Other current assets:

Prepaid expenses and other current assets:

Derivative financial instruments — 22,297 — 22,297

Non-current assets:

Other non-current assets:

Money market funds 1,208 — — 1,208

7 unchanged sentences

Total liabilities measured at fair value $ — $ 2,115 $ — $ 2,115

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

NON-RECURRING FAIR VALUE MEASUREMENTS

4 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