What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2024-02-26 compared with 2023-02-23 · 190 added, 178 removed, 957 unchanged (28% of the section changed)

19 unchanged sentences

We conducted our audits in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

8 unchanged sentences

The Company has trademarks and trade names (“trademarks”) that are indefinite-lived intangible assets.

As of December 31, 2022, the carrying value of the intangible assets were $81.6 million, of which $51.8 million was attributed to prAna’s trademark, after recognizing $18.7 million of impairment loss in the year ended December 31, 2022.

The Company used the relief from royalty method to estimate fair value, which requires management to make significant estimates and assumptions related to projected revenues, royalty rates and discount rates to estimate the fair value of the prAna trademark.

Auditing management’s estimates and assumptions related to projected revenues for prAna involved especially subjective judgement.

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As of December 31, 2023, the carrying value of the Intangible assets, net were $79.9 million, of which $51.8 million was attributed to prAna’s trademark.

The Company used the relief from royalty method to estimate fair value, which requires management to make significant estimates and assumptions related to projected net sales, royalty rates and discount rates.

Auditing management’s estimates and assumptions related to projected net sales, discount rate, and royalty rate for prAna involved especially subjective judgement.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to management’s estimates and assumptions related to projected revenues for the prAna trademark valuation included the following, among others:

• We tested the effectiveness of controls over intangible assets, including those over the forecasts of future revenues.

• We evaluated management’s ability to accurately forecast future revenues by comparing actual results to management’s historical forecasts.

• We evaluated the reasonableness of management’s revenue forecasts by comparing the forecasts to:

◦ Historical revenues.

◦ Forecasted information included in Company press releases as well as in analyst and industry reports for the Company and certain of its peer companies.

Our audit procedures related to management’s estimates and assumptions related to projected net sales for the prAna trademark valuation included the following, among others:

• We tested the effectiveness of controls over intangible assets, including those over the forecasts of future net sales.

• We evaluated management’s ability to accurately forecast future net sales by comparing actual results to management’s historical forecasts.

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• We evaluated the reasonableness of management’s net sales forecasts by comparing the forecasts to:

◦ Historical net sales.

◦ Forecasted information included in the Company's press releases as well as in analyst and industry reports for the Company and certain of its peer companies.

• To evaluate the reasonableness of the (1) discount rate and (2) royalty rate, with the assistance of our fair value specialists, we:

1 unchanged sentence

◦ Tested the inputs and source information underlying the determination of the discount rate by comparing to reputable third-party data or industry information and tested the mathematical accuracy of the calculation.

◦ Testing the source information underlying the determination of the royalty rate selected by management and compared the selected royalty rates from royalty agreements in the outdoor apparel industry for comparable companies and the Company's own contract royalty rates.

Goodwill – prAna Goodwill – Refer to Notes 2 and 6 to the Consolidated Financial Statements

◦ Tested the source information underlying the determination of the royalty rate selected by management and compared the selected royalty rates from royalty agreements for comparable companies.

Goodwill – prAna Reporting Unit – Refer to Notes 2 and 6 to the consolidated financial statements

Critical Audit Matter Description

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The Goodwill balance was $26.7 million as of December 31, 2023, of which $12.3 million was allocated to the prAna Reporting Unit (“prAna”), after recognizing $25.0 million of impairment loss in the year ended December 31, 2023.

The Company used a combination of discounted cash flow analysis and market-based valuation methods, which requires management to make significant estimates and assumptions related to projected revenues, discount rates, market-based multiples, and other operating performance measures.

The Company used a combination of discounted cash flow analysis and market-based valuation methods, which requires management to make significant estimates and assumptions related to projected net sales, discount rates, market-based multiples, and other operating performance measures.

Changes in these assumptions could have a significant impact on either the fair value, the amount of any goodwill impairment charge, if any, or both.

Auditing management’s estimates and assumptions related to projected revenues, discount rate and market multiples for prAna involved especially subjective judgment.

Auditing management’s estimates and assumptions related to projected net sales, discount rate and market-based multiples for prAna involved especially subjective judgment.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures for management’s estimates and assumptions related to projected revenues, for the prAna Goodwill valuation included the following, among others:

• We tested the effectiveness of internal controls over the prAna goodwill impairment analysis, including those over the forecast of future revenues, the selection of the discount rate and market-based multiples.

• We evaluated management’s ability to accurately forecast revenues by comparing actual results to management’s historical forecasts.

• We evaluated the reasonableness of management’s revenue forecasts by comparing the forecasts to:

◦ Historical revenues.

◦ Forecasted information included in Company press releases as well as in analyst and industry reports for the Company and certain of its peer companies.

Our audit procedures for management’s estimates and assumptions related to projected net sales, for the prAna valuation included the following, among others:

• We tested the effectiveness of internal controls over the prAna impairment analysis, including those over the forecast of future net sales, the selection of the discount rate and market-based multiples.

• We evaluated management’s ability to accurately forecast net sales by comparing actual results to management’s historical forecasts.

• We evaluated the reasonableness of management’s net sales forecasts by comparing the forecasts to:

◦ Historical net sales.

◦ Forecasted information included in the Company's press releases as well as in analyst and industry reports for the Company and certain of its peer companies.

• To evaluate the reasonableness of the discount rate, with the assistance of our fair value specialists, we:

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◦ Developed a range of independent estimates of the discount rate and compared those to the discount rate by comparing to reputable third-party data or industry information and tested the mathematical accuracy of the calculation.

• With the assistance of our fair value specialists, we evaluated the reasonableness of the market multiple management applied to the projected revenues as part of their market-based valuation method through comparison to valuation multiples for guideline public companies.

• With the assistance of our fair value specialists, we evaluated the reasonableness of the market-based multiple management applied to the projected revenues as part of their market-based valuation method through comparison to valuation multiples for guideline public companies.

/s/ DELOITTE & TOUCHE LLP

87 unchanged sentences

Other non-operating income (expense), net

2,221 1,593 ( 373 )

Income before income tax 326,192 397,410 451,511

15 unchanged sentences

Other comprehensive income (loss):

Change in available-for-sale securities

Change in available-for-sale securities (net of tax effect of $46)

Change in derivative transactions (net of tax effects of $ 6,662 , $( 4,358 ), and $( 7,138 ), respectively)

44 unchanged sentences

Net effect of exchange rate changes on cash 389 ( 19,831 ) ( 7,087 )

Net increase (decrease) in cash and cash equivalents ( 333,163 ) ( 27,321 ) 104,716

Net decrease in cash and cash equivalents ( 79,922 ) ( 333,163 ) ( 27,321 )

Cash and cash equivalents, beginning of period 430,241 763,404 790,725

1 unchanged sentence

Supplemental disclosures of cash flow information:

Cash paid during the year for income taxes $ 92,110 $ 129,483 $ 14,687

Cash paid during the period for income taxes $ 90,507 $ 92,110 $ 129,483

Supplemental disclosures of non-cash investing and financing activities:

36 unchanged sentences

Repurchase of common stock ( 2,378 ) ( 36,774 ) ( 147,248 ) — ( 184,022 )

Excise taxes related to repurchase of common stock — ( 1,642 ) — — (1,642)

Balance, December 31, 2023

27 unchanged sentences

NATURE OF THE BUSINESS

Columbia Sportswear Company connects active people with their passions through its four well-known brands, Columbia, SOREL, Mountain Hardwear, and prAna, by designing, developing, marketing, and distributing its outdoor, active and lifestyle apparel, footwear, accessories, and equipment products to meet the diverse needs of its customers and consumers.

Columbia Sportswear Company connects active people with their passions through its four brands, Columbia, SOREL, Mountain Hardwear, and prAna, by designing, developing, marketing, and distributing its outdoor, active and lifestyle apparel, footwear, accessories, and equipment products to meet the diverse needs of its customers and consumers.

PRINCIPLES OF CONSOLIDATION

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

RECLASSIFICATIONS

Certain amounts in prior period consolidated financial statements have been reclassified to conform to our current period presentation.

ESTIMATES AND ASSUMPTIONS

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Actual results may differ from these estimates and assumptions.

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

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

Cash and cash equivalents are stated at fair value or at cost, which approximates fair value, and include short-term highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity they present insignificant risk of changes in value because of changes in interest rates.

As of December 31, 2022 and December 31, 2021, Cash and cash equivalents consisted of cash and money market funds.

As of December 31, 2022, Short-term investments consisted of money market funds and mutual fund shares held as part of the Company's deferred compensation plan expected to be distributed in the next twelve months.

As of December 31, 2023, Cash and cash equivalents consisted of cash, money market funds and time deposits.

As of December 31, 2022, Cash and cash equivalents consisted of cash and money market funds.

As of December 31, 2023, Short-term investments consisted of United States government treasury bills, as well as money market funds and mutual fund shares held as part of the Company's deferred compensation plan expected to be distributed in the next twelve months.

As of December 31, 2022 , Short-term investments consisted of money market funds and mutual fund shares held as part of the Company's deferred compensation plan expected to be distributed in the next twelve months.

The United States government treasury bills are classified as available-for-sale securities and are recorded at fair value with any unrealized gains or losses reported, net of tax, in Other comprehensive income (loss) .

Investments held as part of the Company's deferred compensation plan are classified as trading securities and are recorded at fair value with any unrealized gains and losses included in Selling, general, and administrative ("SG&A") expenses .

Realized gains or losses from these trading securities are determined based on the specific identification method and are included in SG&A expenses .

Investments held as part of the Company's deferred compensation plan are classified as trading securities and are recorded at fair value with any gains and losses included in Selling, general, and administrative ("SG&A") expenses .

As of December 31, 2023 and 2022, long-term investments included in Other non-current assets consisted of money market funds and mutual fund shares held to offset liabilities to participants in the Company's deferred compensation plan.

These investments are classified as long-term because the related deferred compensation liabilities are not expected to be paid within the next year.

These investments are classified as trading securities and are recorded at fair value with unrealized gains and losses reported as SG&A expenses .

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Notes to Consolidated Financial Statements

ACCOUNTS RECEIVABLE

These investments are classified as long-term because the related deferred compensation liabilities are not expected to be paid within the next twelve months.

These investments are classified as trading securities and are recorded at fair value with gains and losses reported as SG&A expenses .

ALLOWANCE FOR DOUBTFUL ACCOUNTS

Accounts receivable have been reduced by an allowance for doubtful accounts.

The Company maintains an allowance for estimated credit losses resulting from the inability of the Company's customers to make required payments.

The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate.

The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and

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Notes to Consolidated Financial Statements

supportable forecasts when appropriate.

The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations.

15 unchanged sentences

Internal and external costs directly related to the development of internal-use software during the application development stage, including costs incurred for third party contractors and employee compensation, are capitalized and depreciated over a 3-10 year estimated useful life.

INTANGIBLE ASSETS AND GOODWILL

Intangible assets with indefinite lives and goodwill are not amortized but are periodically evaluated for impairment.

Intangible assets that are determined to have finite lives are amortized using the straight-line method over their estimated useful lives and are measured for impairment only when events or circumstances indicate the carrying value may be impaired.

Intangible assets with finite lives include patents, purchased technology and customer relationships and have estimated useful lives which range from approximately 3 to 10 years.

CLOUD COMPUTING ARRANGEMENTS

1 unchanged sentence

Implementation costs associated with CCAs are capitalized ("CCA assets") when incurred during the application development stage and generally included in Other non-current assets in the Consolidated Balance Sheets.

CCA assets are amortized on a straight-line basis over their assessed useful lives or the contractual term of the CCA contract, whichever is shorter, with amortization included in the same financial statement line item in the Consolidated Statement of Operations as the expense for fees in the associated CCA contract.

As of December 31, 2022, CCA assets in-service have useful lives which range from approximately ten months to six years.

CCA assets are amortized on a straight-line basis over the lesser of their assessed useful lives or the contractual term of the CCA contract, whichever is shorter, with amortization included in the same financial statement line item in the Consolidated Statement of Operations as the expense for fees in the associated CCA contract.

As of December 31, 2023, CCA assets in-service have useful lives which range from approximately one year to six years.

As of December 31, 2023 and 2022, CCA assets consisted of capitalized implementation costs of $ 38.6 million and $ 36.0 million, respectively and associated accumulated amortization of $ 19.8 million and $ 12.6 million, respectively.

Changes in these assets are recorded in Other assets within operating activities in the Consolidated Statements of Cash Flows.

IMPAIRMENT OF LONG-LIVED ASSETS

Long-lived assets, which include property, plant and equipment, lease ROU assets, and capitalized implementation costs for cloud computing arrangements are tested for recoverability only when events or circumstances indicate the carrying value may not be recoverable.

In these cases, the Company estimates the future undiscounted cash flows to be derived from the asset or asset group to determine whether the asset or asset group is recoverable.

If the sum of the estimated future undiscounted cash flows is less than the carrying value of the asset or asset group, the Company recognizes an impairment loss, measured as the amount by which the carrying value exceeds the estimate of fair value.

Impairment charges of long-lived assets, if any, are classified as SG&A expenses .

Impairment charges of goodwill and indefinite-lived intangible assets, if any, are classified as Impairment of goodwill and intangible assets in the Consolidated Statements of Operations.

DEFINITE-LIVED INTANGIBLE ASSETS

Intangible assets with finite lives include patents, purchased technology and customer relationships and have estimated useful lives which range from approximately 3 to 10 years.

INDEFINITE-LIVED INTANGIBLE ASSETS AND GOODWILL

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Notes to Consolidated Financial Statements

The Company reviews and tests its indefinite-lived intangible assets with indefinite lives and goodwill for impairment in the fourth quarter of each year and when events or changes in circumstances indicate that it is more likely than not that the fair value of the asset or reporting unit is less than its carrying amount.

The Company's intangible assets with indefinite lives consist of trademarks and trade names.

In the impairment test for goodwill, the estimated fair value of the reporting unit is compared with the carrying amount of that reporting unit.

In the impairment tests for trademarks and trade names indefinite-lived intangibles, the Company compares the estimated fair value of each asset to its carrying amount.

In the impairment tests for goodwill, the estimated fair value of the reporting unit is compared with the carrying amount of that reporting unit.

For goodwill and trademarks and trade names indefinite-lived intangible assets and goodwill, if the carrying amount exceeds its estimated fair value, the Company calculates an impairment as the excess of carrying amount over the estimate of fair value.

The Company leases, among other things, retail space, office space, warehouse facilities, storage space, vehicles, and equipment.

Generally, the base lease terms are between 5 and 10 years.

Generally, the initial lease terms are between 5 and 10 years.

Certain lease agreements contain scheduled rent escalation clauses and others include rental payments adjusted periodically depending on an index or rate.

1 unchanged sentence

Certain lease agreements require the Company to pay real estate taxes, insurance, common area maintenance, and other costs, collectively referred to as operating costs, in addition to base rent.

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Notes to Consolidated Financial Statements

Certain lease agreements also contain lease incentives, such as tenant improvement allowances and rent holidays.

15 unchanged sentences

accordingly, these options are generally not considered in determining the initial lease term.

At the renewal of an expiring lease, the Company reassesses options in the contract that it is reasonably certain to exercise in its measurement of lease term.

In instances where the Company exercises an option it had previously determined it was not reasonably certain to exercise, the Company reassesses any remaining options in the contract that it is reasonably certain to exercise in its measurement of the lease term.

For lease agreements entered into or reassessed after the adoption of Accounting Standards Codification ("ASC") 842, the Company has elected the practical expedient to account for the lease and non-lease components as a single lease component.

1 unchanged sentence

Variable lease payments associated with the Company's leases are recognized upon occurrence of the event, activity, or circumstance in the lease agreement on which those payments are assessed.

Variable lease payments are presented in the Company's Consolidated Statements of Operations in the same line item as expense arising from fixed lease payments.

Leases with an initial term of 12 months or less are not recorded on the balance sheet.

The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

For lease concessions related to the effects of the COVID-19 pandemic that provide a deferral of payments with no substantive changes to the consideration in the original contract, the Company continues to recognize expense during the deferral period.

For concessions related to the effects of the COVID-19 pandemic in the form of lease abatements, the reduced lease payments are accounted for as reductions to variable lease expense.

IMPAIRMENT OF LONG-LIVED ASSETS, INTANGIBLE ASSETS AND GOODWILL

Long-lived assets, which include property, plant and equipment, lease ROU assets, capitalized implementation costs for cloud computing arrangements, and intangible assets with finite lives, are tested for recoverability only when events or circumstances indicate the carrying value may not be recoverable.

In these cases, the Company estimates the future undiscounted cash flows to be derived from the asset or asset group to determine whether a potential impairment exists.

If the sum of the estimated undiscounted cash flows is less than the carrying value of the asset or asset group, the Company recognizes an impairment loss, measured as the amount by which the carrying value exceeds the estimate of fair value.

The Company reviews and tests its intangible assets with indefinite lives and goodwill for impairment in the fourth quarter of each year and when events or changes in circumstances indicate that it is more likely than not that the fair value of the asset or reporting unit is less than its carrying amount.

The Company's intangible assets with indefinite lives consist of trademarks and trade names.

In the impairment test for goodwill, the estimated fair value of the reporting unit is compared with the carrying amount of that reporting unit.

In the impairment tests for trademarks and trade names, the Company compares the estimated fair value of each asset to its carrying amount.

For goodwill and trademarks and trade names, if the carrying amount exceeds its estimated fair value, the Company calculates an impairment as the excess of carrying amount over the estimate of fair value.

Variable lease payments are presented in the Company's Consolidated Statements of Operations in the same line item as expense arising from fixed lease payments, which is generally within SG&A expenses .

Leases with an initial term of 12 months or less are considered short-term leases and not recorded on the Consolidated Balance Sheets.

The Company recognizes lease expense for short-term leases on a straight-line basis over the lease term.

For lease concessions related to the effects of the COVID-19 pandemic that provided a deferral of payments with no substantive changes to the consideration in the original contract, the Company continues to recognize expense during the deferral period.

For concessions related to

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Notes to Consolidated Financial Statements

Impairment charges of long-lived assets, if any, are classified as SG&A expenses .

Impairment charges of goodwill and indefinite-lived intangible assets, if any, are classified as Impairment of goodwill and intangible assets in the Consolidated Statements of Operations.

the effects of the COVID-19 pandemic in the form of lease abatements, the reduced lease payments were accounted for as reductions to variable lease expense.

Income taxes are based on amounts of taxes payable or refundable in the current year and on expected future tax consequences of events that are recognized in the financial statements in different periods than they are recognized in tax returns.

8 unchanged sentences

Changes in the Company's assessment may result in the recognition of a tax benefit or an additional charge to the tax provision in the period the assessment changes.

The effective portion of changes in fair values of outstanding cash flow hedges is recorded in Accumulated other comprehensive income (loss) until earnings are affected by the hedged transaction, and any ineffective portion is included in earnings.

The effective portion of changes in the fair value of outstanding cash flow hedges is recorded in Accumulated other comprehensive income (loss) until earnings are affected by the hedged transaction, and any ineffective portion is included in earnings.

In most cases, amounts recorded in Accumulated other comprehensive income (loss) will be released to earnings after maturity of the related derivative.

12 unchanged sentences

The Company estimates expected sales returns and other accommodations, such as chargebacks and markdowns, and records a sales reserve to reduce Net sales.

These estimates are based on historical rates of product returns and claims, as well as events and circumstances that indicate changes to such historical rates.

These estimates are based on historical rates of product returns and claims, as well as events and circumstances that indicate changes to such historical rates are warranted.

However, actual returns and claims in any future period are inherently uncertain and thus may differ from estimates.

As a result, the

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Notes to Consolidated Financial Statements

Company adjusts estimates of revenue at the earlier of when the most likely amount of consideration the Company expects to receive changes or when the amount of consideration becomes fixed.

If actual or expected future returns and claims are significantly greater or lower than the sales reserves established, the Company records an adjustment to Net sales in the period in which it made such determination.

result, the Company adjusts estimates of revenue at the earlier of when the most likely amount of consideration the Company expects to receive changes or when the amount of consideration becomes fixed.

If actual or expected future returns and claims are significantly different than the sales reserves established, the Company records an adjustment to Net sales in the period in which it made such determination.

Licensing income, which is presented separately as Net licensing income on the Consolidated Statements of Operations and represents less than 1 % of total revenue, is recognized over time based on the greater of contractual minimum royalty guarantees and actual, or estimated, sales of licensed products by the Company's licensees.

3 unchanged sentences

Shipping and Handling Costs

The Company treats shipping and handling activities as fulfillment costs, and as such recognizes the costs for these activities at the time the related revenue is recognized.

The majority of these costs, typically associated with warehousing and handling of inventory, are generally recorded as SG&A expenses , while the direct costs associated with shipping goods to customers and consumers are recorded as Cost of sales .

Shipping and handling fees billed to customers are recorded as Net sales .

Shipping and handling costs recorded as a component of SG&A expenses were $ 155.8 million, $ 114.4 million and $ 98.0 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Fees for shipping and handling activities which are billed to customers and consumers are recorded as Net Sales .

The Company has elected to account for shipping and handling activities that occur after a customer has obtained control of a good as fulfillment costs rather than an additional performance obligation.

Freight costs associated with the shipment of goods to customers and consumers, including freight costs associated with the transfer of inventory within the Company's distribution network and to our retail stores, are recorded as Cost of sales .

Shipping and handling costs also include costs associated with the handling of inventory and warehousing costs associated with the operation of our owned distribution centers and third-party logistics providers are recorded as SG&A expenses , and were $ 183.2 million , $ 155.8 million and $ 114.4 million for the years ended December 31, 2023, 2022 and 2021, respectively.

COST OF SALES

Cost of sales consists of all direct product costs, including shipping, duties and importation costs, as well as specific provisions for excess, close-out or slow-moving inventory.

Cost of sales consists of all direct costs to source and purchase inventory, including product costs, freight, duties and other importation costs, as well as specific provisions for excess, close-out or slow-moving inventory.

In addition, certain products carry life-time or limited warranty provisions for defects in quality and workmanship.

1 unchanged sentence

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

SG&A expenses consists of personnel-related costs, advertising, depreciation and amortization, occupancy, and other selling and general operating expenses related to the Company's business functions.

SG&A expenses consists of personnel-related costs, advertising, depreciation and amortization, occupancy, warehousing, and other selling and general operating expenses related to the Company's business functions.

STOCK-BASED COMPENSATION

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For stock options and service-based restricted stock units, stock-based compensation cost is recognized over the expected requisite service period using the straight-line attribution method.

For performance-based restricted stock units, stock-based compensation cost is recognized based on the Company's assessment of the probability of achieving performance targets in the reporting period.

For performance-based restricted stock units, stock-based compensation cost is recognized based on the Company's assessment of the probability of achieving the related performance targets.

The Company estimates forfeitures for stock-based awards granted, but which are not expected to vest.

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Advertising costs, including marketing and demand creation spending, are expensed in the period incurred and are included in SG&A expenses .

Total advertising expense, including cooperative advertising costs, was $ 205.9 million, $ 184.8 million and $ 141.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Cooperative advertising costs are expensed when the related revenues are recognized and included in SG&A expenses .

The Company may reimburse its customers for certain marketing activities at the Company's discretion.

The costs for such activities are recorded as advertising costs when the Company has determined a payment is in exchange for a distinct good or service and approximates the fair value of the good or service received.

Total advertising expense was $ 209.4 million, $ 205.9 million and $ 184.8 million for the years ended December 31, 2023, 2022 and 2021, respectively.

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

The Company adopted ASU No.

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

Disclosures by Business Entities about Government Assistance, effective January 1, 2022, using the prospective method of adoption.

ASU 2021-10 increases transparency of government assistance received by a business entity by requiring annual 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 was effective for annual periods beginning after December 15, 2021.

At adoption, there was not a material impact to the Company's consolidated financial statements.

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RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED

In November 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update ("ASU") No.

2023-07 (“ASU 2023-07”), Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses.

The amendments will require public entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within the reported measure of segment profit or loss, among other disclosure requirements.

ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024, with early adoption permitted, and should be applied retrospectively to all prior periods presented in the financial statements.

The Company is currently evaluating the ASU to determine the impact on the Company's disclosures.

In December 2023, the FASB issued ASU No.

2023-09 (“ASU 2023-09”), Income Taxes (Topic 740):

Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through disaggregation of specific rate reconciliation categories and income taxes paid by jurisdiction.

The amendments are effective for annual periods beginning after December 15, 2024, with early adoption permitted, and may be applied prospectively or retrospectively.

The Company is currently evaluating the ASU to determine the impact on the Company’s disclosures.

NOTE 3 — REVENUES

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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:

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:

Year Ended December 31, 2023

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No single customer accounted for 10% or more of Net sales for any of the years ended December 31, 2023, 2022 or 2021.

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Notes to Consolidated Financial Statements

NOTE 5 — PROPERTY, PLANT AND EQUIPMENT, NET

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Depreciation expense for Property, plant and equipment, net was $ 56.4 million , $ 53.1 million, and $ 54.2 million for the years ended December 31, 2023, 2022 and 2021, respectively.

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Notes to Consolidated Financial Statements

Impairment charges for Property, plant and equipment, net are inclu ded in SG&A expenses an d were $ 0.8 million, $ 0.5 million, and $ 5.0 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Charges during the years ended December 31, 2022, 2021 and 2020 were recorded primarily for certain underperforming retail stores in the U.S., EMEA and LAAP regions.

NOTE 6 — INTANGIBLE ASSETS, NET AND GOODWILL

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Intangible assets, net $ 79,908 $ 81,558

Amortization expense for intangible assets subject to amortization was $ 1.7 million, $ 1.7 million and $ 2.5 million for the years ended December 31, 2022, 2021 and 2020 respectively.

Amortization expense for intangible assets subject to amortization was $ 1.7 million for each of the years ended December 31, 2023, 2022 and 2021.

For the year ended December 31, 2023 , there was no impairment recorded for intangible assets with indefinite lives.

For the year ended December 31, 2022, an im pairment charge of $ 18.7 million was recorded for the impairment of prAna's trademar k and trade name (collectively, "trademark"), which is an indefinite-lived intangible asset recorded in the U.S.

The impairment of the prAna trademark was determined as part of the annual impairment test.

The decline in estimated fair value from the fourth quarter 2021 impairment test reflects a decline in forecasted revenue, a lower estimated royalty rate, and a slightly higher discount rate.

For the year ended December 31, 2021 , there were no impairments recorded for intangible assets with indefinite lives.

For the year ended December 31, 2020, an impairment charge of $ 17.5 million was recorded for the impairment of prAna's trademark.

The impairment of the prAna trademark was determined as part of the annual impairment test.

The decline in estim ated fair value from the fourth quarter 2020 impairment test compared to the fourth quarter 2019 impairment test reflected a lower estimated royalty rate and a decline in forecasted revenues.

The Company estimated fair value using a relief from royalty method under the income approach.

Cash flow projections were developed in part from the Company's annual planning process.

The discount rate was the equity component of the estimated weighted average cost of capital of the reporting unit from a market-participant perspective.

The following table presents the remaining estimated annual amortization expense of intangible assets with definite lives for the years 2023 through 2027:

(in thousands)

The decline in estimated fair value from the fourth quarter 2021 impairment test

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Notes to Consolidated Financial Statements

reflected a decline in forecasted revenue, a lower estimated royalty rate, and a slightly higher discount rate.

For the year ended December 31, 2021 , there was no impairment recorded for intangible assets with indefinite lives.

The following table presents the remaining estimated annual amortization expense of intangible assets with definite lives:

(in thousands)

2025 and thereafter $ —

The following table sets forth the changes in Goodwill .

2 unchanged sentences

Gross $ 73,208

Accumulated impairment loss ( 4,614 )

Accumulated impairment losses

Carrying value 68,594

Impairment losses during 2022

Balance as of December 31, 2022

Accumulated impairment loss ( 4,614 )

Accumulated impairment losses

Carrying value 51,694

Impairment losses during the year ( 16,900 )

Impairment losses during 2023

Balance as of December 31, 2023

Accumulated impairment loss ( 21,514 )

Accumulated impairment losses

Carrying value $ 26,694

Substantially all of the Company's goodwill is recorded in the U.S.

For the y ear ended December 31, 2022 , an impairment charge of $ 16.9 million was recorded.

The impairment of goodwill attributable to the prAna business was determined as part of the annual impairment test.

For the years ended December 31 2023 and 2022, the impairment of goodwill attributable to the prAna reporting unit was determined as part of the annual impairment test.

The Company estimated the fair value of the prAna reporting unit using a combination of discounted cash flow analysis and market-based valuation methods.

Key assumptions used in the discounted cash flow models are cash flow projections and the discount rate.

Key assumptions used in the discounted cash flow models included the cash flow projections and the discount rate.

Cash flow projections are developed in part from our annual planning process.

The discount rate is the estimated weighted-average costs of capital of the reporting unit from a market-participant perspective.

The discount rate reflected the estimated weighted-average cost of capital of the reporting unit from a market-participant perspective.

The market-based valuation methods to estimate fair value of the reporting units utilized market multiples for guideline public companies .

The decline in estimated fair value from the fourth-quarter 2021 impairment test reflects lower assumed revenue and operating income levels, while the weighted-average cost of capital used in the discounted cash flow model remained relatively unchanged.

The Company determined that goodwill was not impaired for the years ended December 31, 2021 and 2020.

For the year ended December 31, 2 023 an impairment charge of $ 25.0 million was recorded.

The decline in estimated fair value from the fourth quarter 2022 impairment test reflected an increase in the weighted-average cost of capital used in the discounted cash flow model and lower operating income levels.

For the y ear ended December 31, 2022, an impairment charge of $ 16.9 million was recorded.

The decline in estimated fair value from the fourth quarter 2021 impairment test reflected lower assumed revenue and operating income levels, while the weighted-average cost of capital used in the discounted cash flow model remained relatively unchanged.

For the year ended December 31, 2021 , there was no impairment recorded for goodwill.

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Notes to Consolidated Financial Statements

NOTE 7 — SHORT-TERM BORROWINGS AND CREDIT LINES

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The agreement for the Credit Facility requires the Company to comply with a financial covenant to maintain a certain funded debt ratio.

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Notes to Consolidated Financial Statements

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 December 31, 2022, the Company was in compliance with all associated covenants and there was no balance outstanding under the Credit Facility.

As of December 31, 2021 there was no balance outstanding under the credit agreement in effect for such period.

In addition, the 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 December 31, 2023, the Company was in compliance with all associated covenants.

As of December 31, 2023 and 2022, there was no balance outstanding.

INTERNATIONAL CREDIT FACILITIES

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$ 272,058 $ 328,759

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Notes to Consolidated Financial Statements

A reconciliation of product warranties is as follows:

14 unchanged sentences

$ 159,359 $ 145,962 $ 145,353

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Notes to Consolidated Financial Statements

For the year ended December 31, 2023, there were no impairments recorded for ROU assets related to underperforming retail locations or gains from lease termination negotiations or settlements related to previous store closures.

For the year ended December 31, 2022, operating lease costs included $ 0.8 million of ROU asset impairment charges related to underperforming retail locations, as well as a gain of $ 4.8 million from the completion of lease termination negotiations and settlements related to certain retail store closures in 2020 and 2022, primarily in the U.S.

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segment, as well as a gain of $ 8.6 million from the completion of lease termination negotiations and settlements related to certain 2020 retail store closures, primarily in the U.S.

For the year ended December 31, 2020, op erating lease cost included $ 16.5 million of accelerated amortization for retail locations that permanently closed during 2020 for which the related lease liabilities had not been extinguished as of December 31, 2020 due to ongoing negotiations with the landlords.

In addition, for the year ended December 31, 2020, operating lease cost included $ 7.0 million of ROU asset impairment charges related to underperforming retail locations primarily in the U.S.

segment for the year ended December 31, 2020.

In the periods presented, lease concessions reducing variable lease expense were not material.

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Weighted average discount rate 4.42 % 4.21 %

The following table presents the future maturities of lease liabilities as of December 31, 2022:

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Notes to Consolidated Financial Statements

The following table presents the future maturities of operating lease liabilities as of December 31, 2023:

(in thousands)

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Thereafter 106,339

Total lease payments 424,473

Total operating lease payments

imputed interest ( 59,417 )

Total lease liabilities 379,310

current obligations ( 68,685 )

Long-term lease obligations $ 310,625

As of December 31, 2022, the Company has additional operating lease commitments that have not yet commenced of $ 1.5 million.

These leases will commence in 2023 with lease terms of approximately three to six years.

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Notes to Consolidated Financial Statements

Total operating lease liabilities

current operating lease liabilities

Non-current operating lease liabilities

As of December 31, 2023, the Company has additional commitments for operating lease that have not yet commenced of $ 3.8 million.

These leases will commence in 2024 with lease terms of approximately one to ten years.

NOTE 10 — INCOME TAXES

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Income tax expense $ 74,792 $ 85,970 $ 97,403

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Notes to Consolidated Financial Statements

The following is a reconciliation of the statutory federal income tax rate to the effective rate reported in the financial statements:

12 unchanged sentences

Actual provision for income taxes 22.9 % 21.6 % 21.6 %

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Notes to Consolidated Financial Statements

DEFERRED INCOME TAX BALANCES

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Depreciation and amortization 20,335 15,463

Capitalized research and development expenditures (1)

Tax credits 860 2,751

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Total net deferred taxes $ 105,508 $ 94,019

The Company had foreign net operating loss carryforwards of $ 64.3 million as of December 31, 2022, all of which has an unlimited carryforward period.

(1) Capitalized research and development expenditures balance as of December 31, 2022 were previously classified as Other.

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Notes to Consolidated Financial Statements

The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized.

In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations.

The Company had foreign net operating loss carryforwards of $ 8.2 million as of December 31, 2023, of which $ 7.9 million have a 15-year carryforward period and $ 0.3 million have an unlimited carryforward period.

As of December 31, 2023 and 2022, the net operating losses result in deferred tax assets of $ 1.7 million and $ 18.8 million, respectively, and were subject to a valuation allowance of $ 0.0 million and $ 18.8 million, respectively.

Due to a foreign reorganization, the $ 18.8 million net operating losses and related valuation allowance as of December 31, 2022 were written off as the losses were no longer available to offset income.

As of December 31, 2023, the Company had a foreign deferred tax asset of $ 9.4 million, which is subject to a valuation allowance of $ 7.0 million.

As of December 31, 2023, the Company had accumulated undistributed earnings generated by the Company's foreign subsidiaries of $ 299.6 million.

As a result of the Tax Cuts and Jobs Act, these earnings have been subject to U.S.

These earnings have been subject to U.S.

tax, so any further taxes associated with such earnings would generally be limited to foreign withholding and state taxes.

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Due to the nature of the findings in the 2009 through 2014 audits, the Company has invoked the Mutual Agreement Procedures outlined in the United States-Korean income tax treaty.

The Company does not anticipate that adjustments relative to these findings, or any other ongoing tax audits, will result in material changes to its financial condition, results of operations or cash flows.

As of December 31, 2022, the

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Notes to Consolidated Financial Statements

Company was under audit in Canada for tax year 2018.

The Company does not anticipate that adjustments relative to these findings, or any other ongoing tax audits, will result in material impacts to its financial condition, results of operations or cash flows.

Other than the findings and audits previously noted, the Company is not currently under examination in any other major jurisdiction.

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The Company recognizes interest expense and penalties related to income tax matters in Income tax expense .

The Company recognized a net decrease of accrued interest and penalties of $ 0.8 million in 2022, and a net increase of accrued interest and penalties of $ 0.3 million in 2021 and a net increase of accrued interest and penalties of $ 0.8 million in 2020, all of which related to uncertain tax positions.

The Company recognized a net increase of accrued interest and penalties of $ 2.7 million in 2023, and a net decrease of accrued interest and penalties of $ 0.8 million in

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Notes to Consolidated Financial Statements

2022 and a net increase of accrued interest and penalties of $ 0.3 million in 2021, all of which related to uncertain tax positions.

The Company had $ 4.5 million and $ 1.8 million of accrued interest and penalties related to uncertain tax positions as of December 31, 2023 and 2022, respectively.

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The Company, with approval of the Board of Directors, may elect to make discretionary matching or non-matching contributions.

Costs recognized for Company contributions to the plan were $ 13.3 million, $ 10.7 million and $ 10.1 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Costs recognized for Company contributions to the pla n were $ 15.6 million, $ 13.3 million and $ 10.7 million for the years ended December 31, 2023, 2022 and 2021, respectively.

DEFERRED COMPENSATION PLAN

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These investment securities and earnings thereon, held in an irrevocable trust, are intended to provide a source of funds to meet the deferred compensation obligations, subject to claims of creditors in the event of the Company's insolvency.

Changes in the market value of the participants' investment selections are recorded as an adjustment to the investments and as

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Notes to Consolidated Financial Statements

unrealized gains and losses in SG&A expenses .

Changes in the market value of the participants' investment selections are recorded as an adjustment to the investments and as gains and losses in SG&A expenses .

A corresponding adjustment of an equal amount is made to the deferred compensation liabilities and compensation expense, which is included in SG&A expenses .

9 unchanged sentences

These include (i) intellectual property indemnities to the Company's customers and licensees in connection with the use, sale or license of Company products, (ii) indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease, (iii) indemnities to customers, vendors and service providers pertaining to claims based on the negligence or willful misconduct of the Company, (iv) executive severance arrangements, and (v) indemnities involving the accuracy of representations and warranties in certain contracts.

The duration of these indemnities, commitments and guarantees varies, and in certain cases, may be indefinite.

The duration of these indemnities, commitments and guarantees varies, and

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Notes to Consolidated Financial Statements

in certain cases, may be indefinite.

The majority of these indemnities, commitments and guarantees do not provide for any limitation of the maximum potential for future payments the Company could be obligated to make.

1 unchanged sentence

NOTE 13 — SHAREHOLDERS' EQUITY

Since the inception of the Company's stock repurchase plan in 2004 through December 31, 2022, the Company's Board of Directors has authorized the repurchase of $ 2.0 billion of the Company's common stock.

Since the inception of the Company's stock repurchase plan in 2004 through December 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 December 31, 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 year ended December 31, 2022, the Company repurchased an aggregate of $ 286.9 million of common stock under this program.

Under this program as of December 31, 2023, the Company had repurchased 34.1 million shares at an aggregate purchase price of $ 1,654.7 million and had $ 345.3 million remaining available, excluding excise tax.

During the years ended December 31, 2023 and 2022, the Company repurchased an aggregate of $ 184.0 million and $ 286.9 million, respectively, of common stock under this program, excluding excise tax.

NOTE 14 — STOCK-BASED COMPENSATION

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As of December 31, 2023, 2,552,993 shares were available for future grants under the 2020 Plan.

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Notes to Consolidated Financial Statements

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

14 unchanged sentences

The fair value of stock options is determined using the Black-Scholes model.

Key inputs and assumptions used in the model include the exercise price of the award, the expected option term, the expected stock price volatility of the Company's stock over the option's expected term, the risk-free interest rate over the option's expected term, and the Company's expected annual dividend yield.

Key inputs and assumptions used in the model include the

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Notes to Consolidated Financial Statements

exercise price of the award, the expected option term, the expected stock price volatility of the Company's stock over the option's expected term, the risk-free interest rate over the option's expected term, and the Company's expected annual dividend yield.

The option's expected term is derived from historical option exercise behavior and the option's terms and conditions, which the Company believes provide a reasonable basis for estimating an expected term.

10 unchanged sentences

Weighted average grant date fair value per stock option granted $ 22.61 $ 18.33 $ 17.95

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-K | 59

Notes to Consolidated Financial Statements

The following table summarizes stock option activity under the Plan:

30 unchanged sentences

The total cash received as a result of stock option exercises was $ 7.4 million, $ 6.6 million and $ 28.8 million for the years ended December 31, 2023, 2022 and 2021, respectively.

COLUMBIA SPORTSWEAR COMPANY | 2023 FORM 10-K | 60

Notes to Consolidated Financial Statements

RESTRICTED STOCK UNITS

5 unchanged sentences

Other assumptions incorporated into the grant date fair value include the vesting period and the Company's expected annual dividend yield.

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-K | 60

Notes to Consolidated Financial Statements

The weighted average assumptions for restricted stock units granted and resulting fair value are as follows:

52 unchanged sentences

1,996 1,735 844

(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.

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

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2 unchanged sentences

Accumulated other comprehensive income (loss) on the Consolidated Balance Sheets is net of applicable taxes, and consists of unrealized gains and losses on available-for-sale securities, unrealized gains and losses on certain derivative transactions and foreign currency translation adjustments.

The following table sets forth the changes in Accumulated other comprehensive income (loss) :

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

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

1 unchanged sentence

Balance as of December 31, 2020

$ — $ ( 9,369 ) $ 10,175 $ 806

Other comprehensive income (loss) before reclassifications — 16,113 ( 24,465 ) ( 8,352 )

16 unchanged sentences

$ 145 $ 3,689 $ ( 49,670 ) $ ( 45,836 )

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

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

Refer to Note 18 for further information regarding reclassifications.

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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 (expense), net by the gains and losses generated from the remeasurement of the non-functional currency denominated monetary assets and liabilities.

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.

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Currency forward contracts $ 342,532 $ 448,838

As of December 31, 2022, $ 22.8 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 (expense), net in the 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 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 December 31, 2023, $ 8.1 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 sales, Cost of sales, or Other non-operating income, net in the 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 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 December 31, 2023, the Company's derivative contracts had a remaining maturity of less than three years .

18 unchanged sentences

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Notes to Consolidated Financial Statements

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

10 unchanged sentences

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

Other non-operating income (expense), net

Other non-operating income, net

Derivative instruments not designated as cash flow hedges:

Loss recognized in income

Other non-operating income (expense), net

Other non-operating income, net

( 1,822 ) ( 1,955 ) ( 608 )

COLUMBIA SPORTSWEAR COMPANY | 2022 FORM 10-K | 67

Notes to Consolidated Financial Statements

NOTE 19 — FAIR VALUE MEASURES

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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.

COLUMBIA SPORTSWEAR COMPANY | 2023 FORM 10-K | 67

Notes to Consolidated Financial Statements

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

2 unchanged sentences

Money market funds $ 75,758 $ — $ — $ 75,758

Government treasury bills — 9,977 — 9,977

Time deposits (1)

— 40,876 — 40,876

Short-term investments:

Available-for-sale short-term investments:

Government treasury bills — 412,987 — 412,987

Other short-term investments:

Money market funds 314 — — 314

12 unchanged sentences

Total liabilities measured at fair value $ — $ 9,019 $ — $ 9,019

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

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

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Short-term investments:

Available-for-sale short-term investments:

Government treasury bills — 130,168 — 130,168

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

9 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.

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 herein for discussion of impairment charges.

The Company measured the fair value of certain trademark indefinite-lived intangible assets and goodwill as part of impairment testing for the year ended December 31, 2023.

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

Refer to Note 6 in Part II, Item 8 in the Annual Report on Form 10-K for further discussion.

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1 unchanged sentence

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-K

Item 8. Financial Statements and Supplementary Data