What changed in this filing

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Item 1. Financial Statements

2023-11-02 compared with 2023-08-08 · 69 added, 69 removed, 527 unchanged (21% of the section changed)

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands) June 30,

(in thousands) September 30,

2023 December 31,

2022 June 30,

2022 September 30,

Current Assets:

16 unchanged sentences

Current Liabilities:

Short-term borrowings $ — $ — $ 4,441

Accounts payable 162,222 322,472 336,782

16 unchanged sentences

60,526 , 62,139 and 62,105 issued and outstanding, respectively

— 12,692 5,803

Retained earnings 1,942,709 1,953,734 1,846,570

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

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

20 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands) 2023 2022 2023 2022

1 unchanged sentence

Other comprehensive income (loss):

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

Change in derivative transactions (net of tax effects of $( 960 ), $( 4,856 ), $ 1,139 , and $( 9,944 ), respectively)

3 unchanged sentences

Other comprehensive income (loss) ( 6,066 ) ( 15,837 ) ( 16,761 ) ( 33,194 )

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

Comprehensive income $ 97,442 $ 95,913 $ 141,299 $ 152,556

See accompanying notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Six Months Ended June 30,

Nine Months Ended September 30,

(in thousands) 2023 2022

26 unchanged sentences

Repayments on credit facilities ( 837 ) ( 8,133 )

Payment of line of credit issuance fees — ( 604 )

Proceeds from issuance of common stock related to stock-based compensation 7,081 4,598

17 unchanged sentences

Outstanding Amount

Balance, March 31, 2023

Balance, June 30, 2023

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

8 unchanged sentences

Excise taxes related to repurchase of common stock — ( 620 ) — — ( 620 )

Balance, June 30, 2023

Balance, September 30, 2023

60,526 $ — $ 1,942,709 $ ( 47,398 ) $ 1,895,311

1 unchanged sentence

Outstanding Amount

Balance, March 31, 2022

Balance, June 30, 2022

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

6 unchanged sentences

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

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

Balance, June 30, 2022

Balance, September 30, 2022

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

12 unchanged sentences

Excise taxes related to repurchase of common stock — ( 1,251 ) — — ( 1,251 )

Balance, June 30, 2023

Balance, September 30, 2023

60,526 $ — $ 1,942,709 $ ( 47,398 ) $ 1,895,311

13 unchanged sentences

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

Balance, June 30, 2022

Balance, September 30, 2022

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

17 unchanged sentences

NOTE 1 — BASIS OF PRESENTATION AND ORGANIZATION

The accompanying unaudited condensed consolidated financial statements have been prepared by the management of Columbia Sportswear Company (together with its wholly owned subsidiaries, the "Company") and, in the opinion of management, include all normal recurring material adjustments necessary to present fairly the Company's financial position as of June 30, 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 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, 2023, December 31, 2022 and September 30, 2022, the results of operations for the three and nine months ended September 30, 2023 and 2022, and cash flows for the nine months ended September 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 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.

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

17 unchanged sentences

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

Three Months Ended September 30, 2023

(in thousands)

8 unchanged sentences

Total $ 635,413 $ 115,357 $ 129,351 $ 105,562 $ 985,683

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

(in thousands)

8 unchanged sentences

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

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

(in thousands)

10 unchanged sentences

Notes to unaudited Condensed Consolidated Financial Statements

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

(in thousands)

9 unchanged sentences

PERFORMANCE OBLIGATIONS

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.

For the three and nine months ended September 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 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.

As of September 30, 2023, December 31, 2022 and September 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)

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

September 30, 2023 December 31, 2022 September 30, 2022

Intangible assets with definite lives:

9 unchanged sentences

Intangible assets, net $ 80,321 $ 81,558 $ 100,672

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.

Amortization expense for intangible assets subject to amortization was $ 0.4 million for the three months ended September 30, 2023 and 2022, and was $ 1.2 million for the nine months ended September 30, 2023 and 2022.

COLUMBIA SPORTSWEAR COMPANY | Q3 2023 FORM 10-Q | 10

2 unchanged sentences

(in thousands)

2025 and thereafter $ —

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.

3 unchanged sentences

NOTE 5 — SHAREHOLDERS' EQUITY

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.

Since the inception of the Company's stock repurchase plan in 2004 through September 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 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.

Under this program as of September 30, 2023, the Company had repurchased 33.5 million shares at an aggregate purchase price of $ 1,615.3 million and had $ 384.7 million remaining available, excluding excise tax.

During the three and nine months ended September 30, 2023, the Company repurchased an aggregate of $ 65.9 million and $ 144.6 million, respectively, of common stock under this program, excluding excise tax.

COLUMBIA SPORTSWEAR COMPANY | Q3 2023 FORM 10-Q | 11

5 unchanged sentences

Stock-based compensation expense consisted of the following:

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands) 2023 2022 2023 2022

3 unchanged sentences

STOCK OPTIONS

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.

During the nine months ended September 30, 2023, the Company granted a total of 499,440 stock options at a weighted average grant date fair value of $ 22.61 per option.

As of September 30, 2023, unrecognized costs related to outstanding stock options totaled $ 14.9 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 2.28 years.

RESTRICTED STOCK UNITS

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.

During the nine months ended September 30, 2023, the Company granted 286,951 restricted stock units at a weighted average grant date fair value of $ 82.55 per restricted stock unit.

As of September 30, 2023, unrecognized costs related to outstanding restricted stock units totaled $ 28.7 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 2.58 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 June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands, except per share amounts)

16 unchanged sentences

adjustments Total

Balance as of March 31, 2023

Balance as of June 30, 2023

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

3 unchanged sentences

Net other comprehensive income (loss) during the period 3,593 ( 9,659 ) ( 6,066 )

Balance as of June 30, 2023

Balance as of September 30, 2023

$ 19,236 $ ( 66,634 ) $ ( 47,398 )

3 unchanged sentences

Notes to unaudited Condensed Consolidated Financial Statements

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

(in thousands) Derivative transactions Foreign currency

adjustments Total

Balance as of March 31, 2022

Balance as of June 30, 2022

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

3 unchanged sentences

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

Balance as of June 30, 2022

Balance as of September 30, 2022

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

9 unchanged sentences

Net other comprehensive income (loss) during the period ( 2,554 ) ( 14,207 ) ( 16,761 )

Balance as of June 30, 2023

Balance as of September 30, 2023

$ 19,236 $ ( 66,634 ) $ ( 47,398 )

10 unchanged sentences

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

Balance as of June 30, 2022

Balance as of September 30, 2022

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

11 unchanged sentences

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

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

6 unchanged sentences

$ 985,683 $ 955,059 $ 2,427,209 $ 2,294,632

Segment operating income (loss):

Segment operating income:

$ 131,602 $ 145,268 $ 268,260 $ 325,790

8 unchanged sentences

CONCENTRATIONS

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.

The Company had one customer that accounted for approximately 11.6 % and 13.8 % of Accounts receivable, net as of September 30, 2023 and December 31, 2022, respectively.

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

The Company did not have any customers that accounted for 10% or more of Net sales for the three and nine months ended September 30, 2023 and September 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,

Non-functional currency denominated

COLUMBIA SPORTSWEAR COMPANY | Q3 2023 FORM 10-Q | 15

Notes to unaudited Condensed Consolidated Financial Statements

and intercompany loans and dividends.

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

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

Derivative instruments designated as cash flow hedges:

2 unchanged sentences

Currency forward contracts $ 477,843 $ 448,838 $ 287,825

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.

As of September 30, 2023, $ 16.8 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 sales, 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.

As of September 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 $ 7.5 million as of September 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 | Q3 2023 FORM 10-Q | 16

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

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

Derivative instruments designated as cash flow hedges:

10 unchanged sentences

Currency forward contracts Accrued liabilities 1,389 2,533 1,514

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 June 30,

Six Months Ended June 30,

Classification Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands) 2023 2022 2023 2022

11 unchanged sentences

Derivative instruments not designated as cash flow hedges:

Gain (loss) recognized in income

Gain recognized in income

Other non-operating income (expense), net

12 unchanged sentences

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

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

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

(in thousands) Level 1 Level 2 Level 3 Total

1 unchanged sentence

Money market funds $ 60,120 $ — $ — $ 60,120

Time deposits (1)

— 19,412 — 19,412

Short-term investments:

Available-for-sale short-term investments:

Government treasury bills — 69,751 — 69,751

Other short-term investments:

Money market funds 302 — — 302

12 unchanged sentences

Total liabilities measured at fair value $ — $ 2,465 $ — $ 2,465

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

(1) Time deposits are carried at amortized cost on the unaudited Condensed Consolidated Balance Sheet, which reasonably approximates fair value.

COLUMBIA SPORTSWEAR COMPANY | Q3 2023 FORM 10-Q | 18

21 unchanged sentences

Notes to unaudited Condensed Consolidated Financial Statements

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

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

(in thousands) Level 1 Level 2 Level 3 Total

Cash equivalents:

Money market funds $ 30,141 $ — $ — $ 30,141

Short-term investments:

19 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