What changed in this filing

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Item 1. Financial Statements

2024-05-02 compared with 2023-11-02 · 114 added, 174 removed, 422 unchanged (41% of the section changed)

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands) September 30,

(in thousands) March 31,

2024 December 31,

2022 September 30,

2023 March 31,

Current Assets:

16 unchanged sentences

Current Liabilities:

Short-term borrowings $ — $ — $ 4,441

Accounts payable $ 150,131 $ 235,927 $ 220,231

16 unchanged sentences

59,473 , 59,996 and 62,076 issued and outstanding, respectively

— 12,692 5,803

Retained earnings 1,960,634 1,984,446 1,981,287

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands, except per share amounts) 2024 2023

6 unchanged sentences

Interest income, net 9,197 3,283

Other non-operating income (expense), net ( 311 ) ( 269 ) 354 ( 1,660 )

Other non-operating income, net 271 850

Income before income tax 54,149 60,560

11 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands) 2024 2023

1 unchanged sentence

Other comprehensive income (loss):

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

Change in derivative transactions (net of tax effects of $( 3,435 ) and $ 2,710 , respectively)

8 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands) 2024 2023

1 unchanged sentence

Net income $ 42,300 $ 46,202

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

Depreciation, amortization, and non-cash lease expense 93,365 86,569

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 15,070 13,834

Non-cash lease expense 18,603 16,749

Provision for uncollectible accounts receivable 1,033 ( 90 )

Loss on disposal or impairment of property, plant and equipment, and right-of-use assets 568 2,455

Deferred income taxes 1,232 ( 85 )

Stock-based compensation 5,644 5,808

Other, net ( 4,198 ) 287

Changes in operating assets and liabilities:

8 unchanged sentences

Other liabilities 117 1,860

Net cash provided by (used in) operating activities 22,174 ( 328,089 )

Net cash provided by operating activities 106,773 78,002

Cash flows from investing activities:

4 unchanged sentences

Cash flows from financing activities:

Proceeds from credit facilities 837 12,660

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 1,106 2,678

4 unchanged sentences

Net effect of exchange rate changes on cash ( 4,396 ) 47

Net decrease in cash and cash equivalents ( 216,959 ) ( 604,183 )

Net increase (decrease) in cash and cash equivalents 68,143 ( 69,192 )

Cash and cash equivalents, beginning of period 350,319 430,241

10 unchanged sentences

Outstanding Amount

Balance, June 30, 2023

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

Net income — — 103,508 — 103,508

Other comprehensive income (loss) — — — ( 6,066 ) ( 6,066 )

Cash dividends ($ 0.30 per share)

— — ( 18,280 ) — ( 18,280 )

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

55 2,237 — — 2,237

Stock-based compensation expense — 5,818 — — 5,818

Repurchase of common stock ( 887 ) ( 7,435 ) ( 58,509 ) — ( 65,944 )

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

Balance, September 30, 2023

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

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

Outstanding Amount

Balance, June 30, 2022

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

Net income — — 111,750 — 111,750

Other comprehensive income (loss) — — — ( 15,837 ) ( 15,837 )

Cash dividends ($ 0.30 per share)

— — ( 18,630 ) — ( 18,630 )

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

14 368 — — 368

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

Balance, September 30, 2022

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

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

Outstanding Amount

Balance, December 31, 2023

9 unchanged sentences

Excise taxes related to repurchase of common stock — ( 413 ) — — ( 413 )

Balance, September 30, 2023

Balance, March 31, 2024

59,473 $ — $ 1,960,634 $ ( 51,191 ) $ 1,909,443

COLUMBIA SPORTSWEAR COMPANY | Q3 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

10 unchanged sentences

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

Balance, September 30, 2022

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

Balance, March 31, 2023

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

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 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 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, 2024, December 31, 2023 and March 31, 2023, the results of operations for the three months ended March 31, 2024 and 2023, and cash flows for the three months ended March 31, 2024 and 2023.

The December 31, 2023 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, 2023.

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

therefore, results of operations for the three and nine months ended September 30, 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 months ended March 31, 2024 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.

7 unchanged sentences

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.

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

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.

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 7

Notes to unaudited Condensed Consolidated Financial Statements

RECLASSIFICATIONS

Certain amounts in the prior-period financial statements have been reclassified to conform to the current-period presentation.

Non-cash lease expense is now presented on its own line in the Company's Condensed Consolidated Statements of Cash Flows instead of combined with depreciation and amortization.

Additionally, Loss on disposal or impairment of property, plant and equipment is now included in Other, net in the Company's Condensed Consolidated Statements of Cash Flows.

NOTE 2 — REVENUES

3 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 September 30, 2023

(in thousands)

LAAP EMEA Canada Total

Product category net sales

Apparel, Accessories and Equipment $ 487,596 $ 88,362 $ 85,051 $ 70,656 $ 731,665

Footwear 147,817 26,995 44,300 34,906 254,018

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

Channel net sales

Wholesale $ 391,892 $ 75,814 $ 110,608 $ 86,046 $ 664,360

Direct-to-consumer 243,521 39,543 18,743 19,516 321,323

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

Three Months Ended September 30, 2022

(in thousands)

LAAP EMEA Canada Total

Product category net sales

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

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

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

Channel net sales

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

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

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

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

(in thousands)

8 unchanged sentences

Total $ 474,406 $ 138,646 $ 104,520 $ 52,410 $ 769,982

COLUMBIA SPORTSWEAR COMPANY | Q3 2023 FORM 10-Q | 9

Notes to unaudited Condensed Consolidated Financial Statements

Nine Months Ended September 30, 2022

Three Months Ended March 31, 2023

(in thousands)

9 unchanged sentences

PERFORMANCE OBLIGATIONS

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.

For the three months ended March 31, 2024 and 2023, Net sales recognized from performance obligations related to prior periods were not material.

Net sales expected to be recognized in any future period related to remaining performance obligations is not material.

CONTRACT BALANCES

As of September 30, 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.

As of March 31, 2024, December 31, 2023 and March 31, 2023, 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 2024 FORM 10-Q | 8

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 3 — INTANGIBLE ASSETS, NET AND GOODWILL

2 unchanged sentences

(in thousands)

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

March 31, 2024 December 31, 2023 March 31, 2023

Intangible assets with definite lives:

9 unchanged sentences

Intangible assets, net $ 79,496 $ 79,908 $ 81,146

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

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:

(in thousands)

2025 and thereafter $ —

Amortization expense for intangible assets subject to amortization was $ 0.4 million for each of the three months ended March 31, 2024 and 2023.

The remaining amortization expense of intangible assets with definite lives will be recognized in 2024.

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, 2023.

3 unchanged sentences

NOTE 5 — SHAREHOLDERS' EQUITY

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.

Since the inception of the Company's stock repurchase plan in 2004 through March 31, 2024, the Company's Board of Directors has authorized the repurchase of $ 2.0 billion of the Company's common stock, excluding excise tax.

Shares of the Company's common stock may be purchased in the open market or through privately negotiated transactions, subject to market conditions, and generally settle subsequent to the trade date.

The repurchase program does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time.

Under this program as of September 30, 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.

Under this program as of March 31, 2024, the Company had repurchased 34.7 million shares at an aggregate purchase price of $ 1,704.8 million and had $ 295.2 million remaining available, excluding excise tax.

During the three months ended March 31, 2024 and 2023, the Company repurchased an aggregate of $ 50.2 million and $ 15.8 million, respectively, of common stock under this program, excluding excise tax.

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 9

5 unchanged sentences

Stock-based compensation expense consisted of the following:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands) 2024 2023

3 unchanged sentences

STOCK OPTIONS

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.

During the three months ended March 31, 2024, the Company granted a total of 156,277 stock options at a weighted average grant date fair value of $ 20.87 per option.

As of March 31, 2024, unrecognized costs related to outstanding stock options totaled $ 13.4 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 2.61 years.

RESTRICTED STOCK UNITS

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.

During the three months ended March 31, 2024, the Company granted 399,170 restricted stock units at a weighted average grant date fair value of $ 78.65 per restricted stock unit.

As of March 31, 2024, unrecognized costs related to outstanding restricted stock units totaled $ 45.6 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 3.05 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 September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(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)

2,266 2,175 1,989 1,738

(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, service-based restricted stock units and certain market-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.

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 11

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 8 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

1 unchanged sentence

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

(in thousands) Derivative transactions Foreign currency

adjustments Total

Balance as of June 30, 2023

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

Other comprehensive income (loss) before reclassifications 9,876 ( 9,659 ) 217

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

( 6,283 ) — ( 6,283 )

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

Balance as of September 30, 2023

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

(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.

COLUMBIA SPORTSWEAR COMPANY | Q3 2023 FORM 10-Q | 13

Notes to unaudited Condensed Consolidated Financial Statements

(in thousands) Derivative transactions Foreign currency

adjustments Total

Balance as of June 30, 2022

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

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

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

( 2,970 ) — ( 2,970 )

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

Balance as of September 30, 2022

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

(1) Amounts reclassified are recorded in Net sales, 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

(in thousands) Available-for-

sale securities Derivative transactions Foreign currency

adjustments Total

5 unchanged sentences

Net other comprehensive income (loss) during the period ( 145 ) 9,777 ( 14,987 ) ( 5,355 )

Balance as of September 30, 2023

Balance as of March 31, 2024

$ — $ 13,466 $ ( 64,657 ) $ ( 51,191 )

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

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

Refer to Note 10 for further information regarding reclassifications .

(in thousands) Available-for-

sale securities Derivative transactions Foreign currency

(in thousands) Derivative transactions Foreign currency

adjustments Total

5 unchanged sentences

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

Balance as of September 30, 2022

Balance as of March 31, 2023

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

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

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

Refer to Note 10 for further information regarding reclassifications.

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 12

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 9 — SEGMENT INFORMATION

4 unchanged sentences

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

Unallocated corporate expenses consist of expenses incurred by centrally-managed 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 | Q3 2023 FORM 10-Q | 14

Notes to unaudited Condensed Consolidated Financial Statements

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

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

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands)

2023 2022 2023 2022

Net sales to unrelated entities:

12 unchanged sentences

Interest income, net 9,197 3,283

Other non-operating income (expense), net ( 311 ) ( 269 ) 354 ( 1,660 )

Other non-operating income, net 271 850

Income before income tax $ 54,149 $ 60,560

CONCENTRATIONS

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.

The Company had one customer that accounted for approximately 14.4 %, 19.8 % and 12.3 % of Accounts receivable, net as of March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

The Company did not have any customers that accounted for 10% or more of Net sales for the three months ended March 31, 2024 and 2023.

NOTE 10 — FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

6 unchanged sentences

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

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

The Company seeks to

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 13

Notes to unaudited Condensed Consolidated Financial Statements

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

Hedge effectiveness is generally determined by evaluating the ability of a hedging instrument's cumulative change in fair value to offset the cumulative change in the present value of expected cash flows on the underlying exposures.

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

These costs or benefits will be included in Accumulated other comprehensive income (loss) until the underlying hedge transaction is recognized in either Net sales or Cost of sales , at which time, the forward points will also be recognized as a component of Net income .

These costs or benefits are included in Accumulated other comprehensive income (loss) until the underlying hedge transaction is recognized in either Net sales or Cost of sales , at which time, the forward points will also be recognized as a component of Net income .

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

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

Notes to unaudited Condensed Consolidated Financial Statements

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.

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

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

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

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

(in thousands) March 31, 2024 December 31, 2023 March 31, 2023

Derivative instruments designated as cash flow hedges:

2 unchanged sentences

Currency forward contracts $ 231,449 $ 342,532 $ 393,450

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 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.

As of March 31, 2024 , $ 13.0 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 or Cost of sales in the unaudited Condensed Consolidated Statements of Operations.

When outstanding derivative contracts mature, actual amounts ultimately reclassified to Net sa les or Cost of sales 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, 2024, the Company's derivative contracts had a remaining maturity of less than 3 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 $ 4.4 million as of March 31, 2024.

All of the Company's derivative counterparties have credit ratings that are investment grade or higher.

2 unchanged sentences

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 14

Notes to unaudited Condensed Consolidated Financial Statements

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

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

(in thousands) Balance Sheet Classification March 31, 2024 December 31, 2023 March 31, 2023

Derivative instruments designated as cash flow hedges:

11 unchanged sentences

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

Classification Three Months Ended September 30,

Nine Months Ended September 30,

Classification Three Months Ended March 31,

(in thousands) 2024 2023

1 unchanged sentence

Derivative instruments designated as cash flow hedges:

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

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

— $ 11,727 $ ( 1,678 )

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 (expense), net

— — ( 2 ) 222

Other non-operating income, net

Derivative instruments not designated as cash flow hedges:

Gain recognized in income

Other non-operating income (expense), net

Gain (loss) recognized in income

Other non-operating income, net

2,925 ( 1,187 )

COLUMBIA SPORTSWEAR COMPANY | Q3 2023 FORM 10-Q | 17

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 11 — FAIR VALUE MEASURES

1 unchanged sentence

Fair value is defined as an exit price, representing the amount that the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 15

Notes to unaudited Condensed Consolidated Financial Statements

Level 1 — observable inputs such as quoted prices for identical assets or liabilities in active liquid markets;

5 unchanged sentences

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

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

Assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 are as follows:

(in thousands) Level 1 Level 2 Level 3 Total

1 unchanged sentence

Money market funds $ 57,144 $ — $ — $ 57,144

Government treasury bills — 74,828 — 74,828

Time deposits (1)

1 unchanged sentence

Short-term investments:

Available-for-sale short-term investments:

Government treasury bills — 366,982 — 366,982

Other short-term investments:

Money market funds 343 — — 343

13 unchanged sentences

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

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

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 16

4 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 unaudited Condensed Consolidated Balance Sheet, which reasonably approximates fair value.

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

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 17

Notes to unaudited Condensed Consolidated Financial Statements

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

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

(in thousands) Level 1 Level 2 Level 3 Total

Cash equivalents:

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

Government treasury bills — 49,695 — 49,695

Short-term investments:

Available-for-sale short-term investments:

Government treasury bills $ — $ 98,746 $ — $ 98,746

Other short-term investments:

Money market funds 284 — — 284

12 unchanged sentences

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

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

NON-RECURRING FAIR VALUE MEASUREMENTS

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

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

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

COLUMBIA SPORTSWEAR COMPANY | Q3 2023 FORM 10-Q | 20

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.

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