What changed in this filing

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Item 1. Financial Statements

2024-08-01 compared with 2024-05-02 · 181 added, 90 removed, 446 unchanged (38% of the section changed)

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands) March 31,

(in thousands) June 30,

2024 December 31,

2023 March 31,

2023 June 30,

Current Assets:

35 unchanged sentences

Retained earnings 1,878,972 1,984,446 1,915,990

Accumulated other comprehensive income (loss) ( 51,191 ) ( 45,836 ) ( 34,578 )

Accumulated other comprehensive loss

( 55,010 ) ( 45,836 ) ( 41,332 )

Total shareholders' equity 1,823,962 1,938,610 1,874,658

4 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except per share amounts) 2024 2023 2024 2023

4 unchanged sentences

Net licensing income 5,528 4,713 9,920 9,038

Operating income 44,681 56,427

Operating income (loss) ( 23,802 ) 6,229 20,879 62,656

Interest income, net 8,344 3,506 17,541 6,789

Other non-operating income, net 271 850

Income before income tax 54,149 60,560

Income tax expense 11,849 14,358

Net income $ 42,300 $ 46,202

Earnings per share:

Other non-operating income (expense), net 476 ( 185 ) 747 665

Income (loss) before income tax ( 14,982 ) 9,550 39,167 70,110

Income tax expense (benefit) ( 3,241 ) 1,200 8,608 15,558

Net income (loss) $ ( 11,741 ) $ 8,350 $ 30,559 $ 54,552

Earnings (loss) per share:

Basic $ ( 0.20 ) $ 0.14 $ 0.51 $ 0.88

6 unchanged sentences

Notes to unaudited Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended March 31,

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands) 2024 2023 2024 2023

Net income $ 42,300 $ 46,202

Net income (loss) $ ( 11,741 ) $ 8,350 $ 30,559 $ 54,552

Other comprehensive income (loss):

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

— — ( 145 ) —

Change in derivative transactions (net of tax effects of $( 1,550 ), $( 611 ), $( 4,985 ) and $ 2,099 , respectively)

3 unchanged sentences

Other comprehensive income (loss) ( 3,819 ) ( 6,754 ) ( 9,174 ) ( 10,695 )

Comprehensive income $ 36,945 $ 42,261

Comprehensive income (loss) $ ( 15,560 ) $ 1,596 $ 21,385 $ 43,857

See accompanying notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands) 2024 2023

25 unchanged sentences

Cash flows from financing activities:

Proceeds from credit facilities — 837

Repayments on credit facilities — ( 837 )

Proceeds from issuance of common stock related to stock-based compensation 3,747 4,624

4 unchanged sentences

Net effect of exchange rate changes on cash ( 8,381 ) ( 3,251 )

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

Net decrease in cash and cash equivalents ( 8,497 ) ( 198,670 )

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

4 unchanged sentences

Property, plant and equipment acquired through increase in liabilities $ 6,283 $ 5,982

Repurchases of common stock not settled $ 8,114 $ —

See accompanying notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)

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

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

Outstanding Amount

Balance, March 31, 2024

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

Net loss — — ( 11,741 ) — ( 11,741 )

Other comprehensive loss — — — ( 3,819 ) ( 3,819 )

Cash dividends ($ 0.30 per share)

— — ( 17,701 ) — ( 17,701 )

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

62 2,534 — — 2,534

Stock-based compensation expense — 6,364 — — 6,364

Repurchase of common stock ( 783 ) ( 8,344 ) ( 52,220 ) — ( 60,564 )

Excise taxes related to repurchase of common stock — ( 554 ) — — ( 554 )

Balance, June 30, 2024

58,752 $ — $ 1,878,972 $ ( 55,010 ) $ 1,823,962

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

Outstanding Amount

Balance, March 31, 2023

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

Net income — — 8,350 — 8,350

Other comprehensive loss — — — ( 6,754 ) ( 6,754 )

Cash dividends ($ 0.30 per share)

— — ( 18,450 ) — ( 18,450 )

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

57 1,843 — — 1,843

Stock-based compensation expense — 5,400 — — 5,400

Repurchase of common stock ( 775 ) ( 7,740 ) ( 55,197 ) — ( 62,937 )

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

Balance, June 30, 2023

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

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

Outstanding Amount

Balance, December 31, 2023

1 unchanged sentence

Net income — — 30,559 — 30,559

Other comprehensive income (loss) — — — ( 5,355 ) ( 5,355 )

Other comprehensive loss — — — ( 9,174 ) ( 9,174 )

Cash dividends ($ 0.60 per share)

5 unchanged sentences

Excise taxes related to repurchase of common stock — ( 967 ) — — ( 967 )

Balance, March 31, 2024

Balance, June 30, 2024

58,752 $ — $ 1,878,972 $ ( 55,010 ) $ 1,823,962

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

COLUMBIA SPORTSWEAR COMPANY | Q2 2024 FORM 10-Q | 5

Notes to unaudited Condensed Consolidated Financial Statements

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

Outstanding Amount

2 unchanged sentences

Net income — — 54,552 — 54,552

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

Other comprehensive loss — — — ( 10,695 ) ( 10,695 )

Cash dividends ($ 0.60 per share)

5 unchanged sentences

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

Balance, March 31, 2023

Balance, June 30, 2023

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

9 unchanged sentences

Note 6 Stock-Based Compensation 12

Note 7 Earnings Per Share 11

Note 8 Accumulated Other Comprehensive Income (Loss) 12

Note 7 Earnings (Loss) Per Share 13

Note 8 Accumulated Other Comprehensive Loss 14

Note 9 Segment Information 15

4 unchanged sentences

NOTE 1 — BASIS OF PRESENTATION AND ORGANIZATION

The accompanying unaudited condensed consolidated financial statements have been prepared by the management of Columbia Sportswear Company (together with its wholly owned subsidiaries, the "Company") and, in the opinion of management, include all normal recurring material adjustments necessary to present fairly the Company's financial position as of March 31, 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 accompanying unaudited condensed consolidated financial statements have been prepared by the management of Columbia Sportswear Company (together with its wholly owned subsidiaries, the "Company") and, in the opinion of management, include all normal recurring material adjustments necessary to present fairly the Company's financial position as of June 30, 2024, December 31, 2023 and June 30, 2023, the results of operations for the three and six months ended June 30, 2024 and 2023, and cash flows for the six months ended June 30, 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 months ended March 31, 2024 are not necessarily indicative of results to be expected for other quarterly periods or for the full year.

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

25 unchanged sentences

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.

Non-cash lease expense is now presented on its own line in the Company's unaudited 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 unaudited 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 March 31, 2024

Three Months Ended June 30, 2024

(in thousands)

8 unchanged sentences

Total $ 340,228 $ 99,484 $ 103,922 $ 26,610 $ 570,244

Three Months Ended March 31, 2023

Three Months Ended June 30, 2023

(in thousands)

8 unchanged sentences

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

COLUMBIA SPORTSWEAR COMPANY | Q2 2024 FORM 10-Q | 9

Notes to unaudited Condensed Consolidated Financial Statements

Six Months Ended June 30, 2024

(in thousands)

LAAP EMEA Canada Total

Product category net sales

Apparel, Accessories and Equipment $ 689,841 $ 181,501 $ 149,132 $ 62,520 $ 1,082,994

Footwear 124,793 56,629 59,310 16,500 257,232

Total $ 814,634 $ 238,130 $ 208,442 $ 79,020 $ 1,340,226

Channel net sales

Wholesale $ 349,528 $ 114,445 $ 162,503 $ 42,805 $ 669,281

Direct-to-consumer 465,106 123,685 45,939 36,215 670,945

Total $ 814,634 $ 238,130 $ 208,442 $ 79,020 $ 1,340,226

Six Months Ended June 30, 2023

(in thousands)

LAAP EMEA Canada Total

Product category net sales

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

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

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

Channel net sales

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

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

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

PERFORMANCE OBLIGATIONS

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

For the three and six months ended June 30, 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 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.

As of June 30, 2024, December 31, 2023 and June 30, 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 | Q2 2024 FORM 10-Q | 10

4 unchanged sentences

(in thousands)

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

June 30, 2024 December 31, 2023 June 30, 2023

Intangible assets with definite lives:

9 unchanged sentences

Intangible assets, net $ 79,221 $ 79,908 $ 80,733

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.

Amortization expense for intangible assets subject to amortization was $ 0.3 million and $ 0.4 million for the three months ended June 30, 2024 and 2023, respectively, and was $ 0.7 million and $ 0.8 million for the six months ended June 30, 2024 and 2023, respectively.

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 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.

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

Under this program as of June 30, 2024, the Company had repurchased 35.5 million shares at an aggregate purchase price of $ 1,765.4 million and had $ 234.6 million remaining available, excluding excise tax.

During the three and six months ended June 30, 2024, the Company repurchased an aggregate of $ 60.6 million and $ 110.7 million, respectively, of common stock under this program, excluding excise tax.

COLUMBIA SPORTSWEAR COMPANY | Q2 2024 FORM 10-Q | 11

5 unchanged sentences

Stock-based compensation expense consisted of the following:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands) 2024 2023 2024 2023

3 unchanged sentences

STOCK OPTIONS

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.

During the six months ended June 30, 2024, the Company granted a total of 156,277 stock options at a weighted average grant date fair value of $ 20.86 per option.

As of June 30, 2024, unrecognized costs related to outstanding stock options totaled $ 11.9 million, before any related tax benefit.

These unrecognized costs related to stock options are expected to be recognized over a weighted average remaining period of 2.38 years.

RESTRICTED STOCK UNITS

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.

During the six months ended June 30, 2024, the Company granted 421,786 restricted stock units at a weighted average grant date fair value of $ 78.82 per restricted stock unit.

As of June 30, 2024, unrecognized costs related to outstanding restricted stock units totaled $ 42.6 million, before any related tax benefit.

These unrecognized costs related to restricted stock units are expected to be recognized over a weighted average remaining period of 2.84 years.

1 unchanged sentence

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 7 — EARNINGS PER SHARE

Earnings per share ("EPS") is presented on both a basic and diluted basis.

NOTE 7 — EARNINGS (LOSS) PER SHARE

Earnings (loss) per share ("EPS") is presented on both a basic and diluted basis.

Basic EPS is based on the weighted average number of common shares outstanding.

1 unchanged sentence

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

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except per share amounts)

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

2024 2023 2024 2023

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

59,093 61,655 59,458 61,893

Effect of dilutive stock options and restricted stock units — 126 145 229

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

Weighted average common shares outstanding, used in computing diluted earnings (loss) per share

59,093 61,781 59,603 62,122

Earnings per share:

Earnings (loss) per share:

Basic $ ( 0.20 ) $ 0.14 $ 0.51 $ 0.88

Diluted $ ( 0.20 ) $ 0.14 $ 0.51 $ 0.88

Anti-dilutive common shares (1)

(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.

Weighted average common shares excluded (1)

2,969 2,213 2,029 1,789

(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, due to a net loss in the period, or because the shares were subject to performance conditions that had not been met.

COLUMBIA SPORTSWEAR COMPANY | Q2 2024 FORM 10-Q | 13

Notes to unaudited Condensed Consolidated Financial Statements

NOTE 8 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Accumulated other comprehensive income (loss) on the unaudited Condensed 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 tables set forth the changes in Accumulated other comprehensive income (loss) :

(in thousands) Available-for-

sale securities Derivative transactions Foreign currency

NOTE 8 — ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss on the unaudited Condensed 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 tables set forth the changes in Accumulated other comprehensive loss :

(in thousands) Derivative transactions Foreign currency

adjustments Total

Balance as of December 31, 2023

Balance as of March 31, 2024

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

Other comprehensive income (loss) before reclassifications 5,451 ( 7,876 ) ( 2,425 )

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

Amounts reclassified from accumulated other comprehensive loss (1)

( 1,394 ) — ( 1,394 )

Net other comprehensive income (loss) during the period 4,057 ( 7,876 ) ( 3,819 )

Balance as of March 31, 2024

Balance as of June 30, 2024

$ 17,523 $ ( 72,533 ) $ ( 55,010 )

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

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

Refer to Note 10 for further information regarding reclassifications.

1 unchanged sentence

adjustments Total

Balance as of March 31, 2023

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

Other comprehensive income (loss) before reclassifications 2,404 ( 6,028 ) ( 3,624 )

Amounts reclassified from accumulated other comprehensive loss (1)

( 3,130 ) — ( 3,130 )

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

Balance as of June 30, 2023

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

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

Refer to Note 10 for further information regarding reclassifications.

(in thousands) Available-for-

sale securities Derivative transactions Foreign currency

adjustments Total

Balance as of December 31, 2023

1 unchanged sentence

Other comprehensive income (loss) before reclassifications — 17,178 ( 22,863 ) ( 5,685 )

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

Amounts reclassified from accumulated other comprehensive loss (1)

( 145 ) ( 3,344 ) — ( 3,489 )

Net other comprehensive income (loss) during the period ( 145 ) 13,834 ( 22,863 ) ( 9,174 )

Balance as of March 31, 2023

Balance as of June 30, 2024

$ — $ 17,523 $ ( 72,533 ) $ ( 55,010 )

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

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

Refer to Note 10 for further information regarding reclassifications .

1 unchanged sentence

Notes to unaudited Condensed Consolidated Financial Statements

(in thousands) Derivative transactions Foreign currency

adjustments Total

Balance as of December 31, 2022

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

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

Amounts reclassified from accumulated other comprehensive loss (1)

( 6,873 ) — ( 6,873 )

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

Balance as of June 30, 2023

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

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

Refer to Note 10 for further information regarding reclassifications.

NOTE 9 — SEGMENT INFORMATION

6 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

2024 2023 2024 2023

Net sales to unrelated entities:

4 unchanged sentences

$ 570,244 $ 620,933 $ 1,340,226 $ 1,441,526

Segment operating income:

Segment operating income (loss):

$ 23,466 $ 55,058 $ 96,459 $ 136,658

5 unchanged sentences

Interest income, net 8,344 3,506 17,541 6,789

Other non-operating income, net 271 850

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

Other non-operating income (expense), net 476 ( 185 ) 747 665

Income (loss) before income tax $ ( 14,982 ) $ 9,550 $ 39,167 $ 70,110

CONCENTRATIONS

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.

The Company had one customer that accounted for approximately 13.7 % , 19.8 % and 14.6 % of Accounts receivable, net as of June 30, 2024, December 31, 2023 and June 30, 2023, respectively.

The Company did not have any customers that accounted for 10% or more of Net sales for the three and six months ended June 30, 2024 and 2023.

COLUMBIA SPORTSWEAR COMPANY | Q2 2024 FORM 10-Q | 15

Notes to unaudited Condensed Consolidated Financial Statements

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

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.

The Company seeks to 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.

3 unchanged sentences

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

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

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

(in thousands) June 30, 2024 December 31, 2023 June 30, 2023

Derivative instruments designated as cash flow hedges:

2 unchanged sentences

Currency forward contracts $ 377,391 $ 342,532 $ 465,182

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.

As of June 30, 2024 , $ 16.3 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.

As of June 30, 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 $ 5.9 million as of June 30, 2024.

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

3 unchanged sentences

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

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

(in thousands) Balance Sheet Classification June 30, 2024 December 31, 2023 June 30, 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 March 31,

Classification Three Months Ended June 30,

Six Months Ended June 30,

(in thousands) 2024 2023 2024 2023

1 unchanged sentence

Derivative instruments designated as cash flow hedges:

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

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

— $ 5,451 $ 2,404 $ 17,178 $ 726

4 unchanged sentences

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

Other non-operating income, net

Other non-operating income (expense), net

Derivative instruments not designated as cash flow hedges:

Gain (loss) recognized in income

Other non-operating income, net

Other non-operating income (expense), net

1,604 ( 93 ) 4,529 ( 1,280 )

COLUMBIA SPORTSWEAR COMPANY | Q2 2024 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 March 31, 2024 are as follows:

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 are as follows:

(in thousands) Level 1 Level 2 Level 3 Total

22 unchanged sentences

Total liabilities measured at fair value $ — $ 2,164 $ — $ 2,164

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

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

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

26 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.

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

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

1 unchanged sentence

Notes to unaudited Condensed Consolidated Financial Statements

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

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

(in thousands) Level 1 Level 2 Level 3 Total

1 unchanged sentence

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

Government treasury bills — 49,695 — 49,695

Short-term investments:

22 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements