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Item 8. Financial Statements and Supplementary Data

2025-02-27 compared with 2024-02-26 · 424 added, 281 removed, 866 unchanged (45% of the section changed)

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors of Columbia Sportswear Company

To the Shareholders and the Board of Directors of Columbia Sportswear Company

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Columbia Sportswear Company and subsidiaries (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2023, the related notes, and the schedule listed in the Index at Item 15 (collectively referred to as the "financial statements").

We have audited the accompanying consolidated balance sheets of Columbia Sportswear Company and subsidiaries (the "Company") as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2024, and the related notes, and the schedule listed in the Index at Item 15 (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

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We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the Audit Committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Intangible Assets, Net – prAna Trademark– Refer to Notes 2 and 5 to the consolidated financial statements

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

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.

As of December 31, 2024, the carrying value of the Intangible assets, net was $79.2 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 and royalty rate.

Auditing management’s estimates and assumptions related to projected net sales and the 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 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.

Our audit procedures related to management’s estimates and assumptions related to projected net sales and royalty rate 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 and selection of the royalty rate.

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 36

• 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:

◦ Developed a range of independent estimates of the discount rate and compared those to the discount rate selected by management to assess the appropriateness of the discount rate assumption.

◦ 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.

◦ 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

The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value.

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 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 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 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 management’s ability to accurately forecast future 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:

◦ 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-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.

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

• To evaluate the reasonableness of the royalty rate we:

◦ Developed a range of independent estimates and compared those to the royalty rate selected by management.

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

/s/ DELOITTE & TOUCHE LLP

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors of Columbia Sportswear Company

To the Shareholders and the Board of Directors of Columbia Sportswear Company

Opinion on Internal Control over Financial Reporting

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CONSOLIDATED BALANCE SHEETS

As of December 31,

(in thousands) 2024 2023

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250,000 shares authorized;

59,996 and 62,139 issued and outstanding, respectively

56,245 and 59,996 issued outstanding, respectively

Retained earnings 1,843,261 1,984,446

Accumulated other comprehensive income (loss) ( 45,836 ) ( 30,637 )

Accumulated other comprehensive loss ( 63,222 ) ( 45,836 )

Total shareholders' equity 1,780,039 1,938,610

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Impairment of goodwill and intangible assets

— 25,000 35,600

Net licensing income 23,562 21,665 22,020

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Other non-operating income (expense), net ( 257 ) 2,221 1,593

2,221 1,593 ( 373 )

Income before income tax 298,187 326,192 397,410

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Other comprehensive income (loss):

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

Change in available-for-sale securities (net of tax effect of $ 20 , $ 46 , and $ 0 , respectively)

Change in derivative transactions (net of tax effects of $( 5,963 ), $ 6,662 , and $( 4,358 ), respectively)

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( 37,030 ) 2,757 ( 38,137 )

Other comprehensive income (loss) ( 15,199 ) ( 26,261 ) ( 5,182 )

Other comprehensive loss ( 17,386 ) ( 15,199 ) ( 26,261 )

Comprehensive income $ 205,887 $ 236,201 $ 285,179

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

Depreciation, amortization, and non-cash lease expense 127,052 117,399 115,571

Depreciation and amortization 55,944 58,063 54,752

Non-cash lease expense 77,378 68,989 62,647

Provision for uncollectible accounts receivable 2,555 3,142 ( 2,044 )

Loss on disposal or impairment of investments, property, plant and equipment, right-of-use assets, goodwill, and intangible assets 26,374 38,194 1,233

Deferred income taxes ( 6,204 ) ( 5,135 ) ( 8,118 )

Stock-based compensation 23,051 21,021 19,126

Share-based compensation

24,777 23,051 21,021

Loss on impairment of goodwill and intangible assets — 25,000 35,600

Other, net ( 11,002 ) 1,374 2,594

Changes in operating assets and liabilities:

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Payment of line of credit issuance fees — — ( 604 )

Proceeds from issuance of common stock related to stock-based compensation 7,354 6,588 28,783

Tax payments related to stock-based compensation ( 4,681 ) ( 4,229 ) ( 5,812 )

Proceeds from issuance of common stock related to share-based compensation

6,120 7,354 6,588

Tax payments related to share-based compensation

( 4,871 ) ( 4,681 ) ( 4,229 )

Repurchase of common stock ( 317,756 ) ( 184,022 ) ( 287,443 )

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Net effect of exchange rate changes on cash ( 10,587 ) 389 ( 19,831 )

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

Net increase (decrease) in cash and cash equivalents 181,550 ( 79,922 ) ( 333,163 )

Cash and cash equivalents, beginning of period 350,319 430,241 763,404

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CONSOLIDATED STATEMENTS OF EQUITY

(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

Outstanding Amount

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Net income — — 311,440 — 311,440

Other comprehensive income (loss) — — — ( 5,182 ) ( 5,182 )

Other comprehensive loss

— — — ( 26,261 ) ( 26,261 )

Cash dividends ($ 1.20 per share)

— — ( 75,082 ) — ( 75,082 )

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

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

210 2,359 — — 2,359

Stock-based compensation expense — 19,126 — — 19,126

Share-based compensation expense

— 21,021 — — 21,021

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

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Net income — — 251,400 — 251,400

Other comprehensive income (loss) — — — ( 26,261 ) ( 26,261 )

Other comprehensive loss

— — — ( 15,199 ) ( 15,199 )

Cash dividends ($ 1.20 per share)

— — ( 73,440 ) — ( 73,440 )

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

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

235 2,673 — — 2,673

Stock-based compensation expense — 21,021 — — 21,021

Share-based compensation expense

— 23,051 — — 23,051

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

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Net income — — 223,273 — 223,273

Other comprehensive income (loss) — — — ( 15,199 ) ( 15,199 )

Other comprehensive loss

— — — ( 17,386 ) ( 17,386 )

Cash dividends ($ 1.20 per share)

— — ( 69,732 ) — ( 69,732 )

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

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

211 1,249 — — 1,249

Stock-based compensation expense — 23,051 — — 23,051

Share-based compensation expense

— 24,777 — — 24,777

Repurchase of common stock ( 3,962 ) ( 23,030 ) ( 294,726 ) — ( 317,756 )

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Note 3 Revenues 50

Note 4 Concentrations 50

Note 4 Property, Plant and Equipment, Net 52

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Note 12 Shareholders' Equity 59

Note 14 Stock-Based Compensation 59

Note 13 Share-Based Compensation 60

Note 14 Earnings Per Share 65

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Note 18 Fair Value Measures 71

Note 19 Supply Chain Financing 73

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 44

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PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of the Columbia Sportswear Company, its wholly owned subsidiaries and entities in which it maintained a controlling financial interest (the "Company").

The consolidated financial statements include the accounts of the Columbia Sportswear Company, its wholly owned subsidiaries and entities in which it maintains a controlling financial interest (the "Company").

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

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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, impairment of indefinite-lived intangible assets and goodwill, and income taxes.

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

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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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, with original maturities of three months or less.

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 gains and losses included in Selling, general, and administrative ("SG&A") expenses .

As of December 31, 2024 and 2023, Cash and cash equivalents consisted of cash, money market funds, United States ("U.S.") government treasury bills, and time deposits.

As of December 31, 2024 and 2023, Short-term investments consisted of U.S.

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.

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) .

As of December 31, 2024 and 2023, 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.

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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

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 estimate is a result of the Company’s ongoing evaluation of collectability, customer

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 45

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.

creditworthiness, historical levels of credit losses, and future expectations.

Write-offs of accounts receivable were $ 2.5 million and $ 2.8 million for the years ended December 31, 2024 and 2023 , respectively.

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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 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.

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, with amortization included in the same financial statement line item in the Consolidated Statements of Operations as the expense for fees in the associated CCA contract.

As of December 31, 2024, CCA assets in-service have useful lives which range from approximately one year to six years .

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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.

Long-lived assets, which include property, plant and equipment, lease right-of-use ("ROU") assets, and CCA assets 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.

If the carrying value of an asset or asset group exceeds the estimated undiscounted future cash flows, an analysis is performed to estimate the fair value of the asset or asset group.

An impairment is recorded if the fair value of the asset or asset group is less than the carrying amount.

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.

During 2024, we tested certain long-lived assets for impairment at certain underperforming retail locations.

For the years ended December 31, 2024 and 2023, impairment charges from underperforming retail stores were not material.

DEFINITE-LIVED INTANGIBLE ASSETS

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 not be recoverable.

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.

Intangible assets that are determined to have finite lives were amortized using the straight-line method over their estimated useful lives.

Intangible assets subject to amortization were fully amortized as of December 31, 2024.

INDEFINITE-LIVED INTANGIBLE ASSETS AND GOODWILL

The Company reviews and tests its indefinite-lived intangible assets 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

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 46

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.

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.

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

For both indefinite-lived intangible assets and goodwill, if the carrying amount exceeds its estimated fair value, the Company recognizes an impairment loss as the excess of carrying amount over the estimate of fair value.

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

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The Company determines if an arrangement is or contains a lease at contract inception.

The Company recognizes a right-of-use ("ROU") asset and a lease liability at the lease commencement date.

The Company recognizes a lease ROU asset and a lease liability at the lease commencement date.

The lease liability is initially measured at the present value of the unpaid lease payments at the lease commencement date.

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Because the Company does not generally borrow on a collateralized basis, it uses market-based rates as an input to derive an appropriate incremental borrowing rate, adjusted for the lease term and the effect on that rate of designating specific collateral with a value equal to the unpaid lease payments for that lease.

The Company also contemplates adjusting the discount rate for the amount of the lease payments.

The Company's lease contracts may include options to extend the lease following the initial term or terminate the lease prior to the end of the initial term.

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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.

For most 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.

Therefore, for those leases, the lease payments used to measure the lease liability include all of the fixed consideration in the contract.

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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

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.

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Valuation allowances are used to reduce deferred tax assets to amounts considered likely to be realized.

Accrued income taxes in the Consolidated Balance Sheets include unrecognized income tax benefits relating to uncertain tax positions, including related interest and penalties, appropriately classified as current or non-current.

The Company recognizes the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the relevant taxing authority based on the technical merits of the position.

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

The Consolidated Statements of Operations classification of effective hedge results is the same as that of the underlying exposure.

The Consolidated Statements of Operations classification of results from effective hedges is the same as that of the underlying exposure.

Results of hedges of product costs are recorded in Cost of sales when the underlying hedged transactions affect earnings.

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FOREIGN CURRENCY TRANSLATION

For the Company's subsidiaries whose functional currency is not the United States dollar, assets and liabilities have been translated into United States dollars using the exchange rates in effect at period end, and the sales and expenses have been translated into United States dollars using average exchange rates in effect during the period.

For the Company's subsidiaries whose functional currency is not the U.S.

dollar, assets and liabilities have been translated into U.S.

dollars using the exchange rates in effect at period end, and the sales and expenses have been translated into U.S.

dollars using average exchange rates in effect during the period.

The foreign currency translation adjustments are included as a component of Accumulated other comprehensive income (loss) in the Consolidated Balance Sheets.

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

As a 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.

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Notes to Consolidated Financial Statements

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.

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.

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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.

Shipping and handling costs also include costs associated with the handling of inventory and warehousing costs associated with the operation of the Company's owned distribution centers and third-party logistics providers are recorded as SG&A expenses , and were $ 153.9 million, $ 183.2 million and $ 155.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.

COST OF SALES

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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

Stock-based compensation cost is estimated at the grant date based on the award's fair value.

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 the related performance targets.

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

SHARE-BASED COMPENSATION

Share-based compensation cost is estimated at the grant date based on the award's fair value.

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

For equity-classified market-based restricted stock units, the probability of achieving the related market condition is incorporated into the grant date fair value.

If targets are not met, no compensation cost will be reversed except in the case of award forfeitures.

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

If such targets are not met, no compensation cost is recognized and any previously recognized compensation cost is reversed.

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

ADVERTISING COSTS

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Total advertising expense was $ 198.7 million, $ 209.4 million and $ 205.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

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Notes to Consolidated Financial Statements

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

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

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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.

The Company adopted ASU 2023-07 on a retrospective basis within this Annual Report on Form 10-K.

The adoption resulted in enhanced disclosures which can be found within Note 16 of these Consolidated Financial Statements.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED

In December 2023, the FASB issued ASU No.

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

In November 2024, the FASB issued ASU No.

2024-03 ("ASU 2024-03"), Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses, which is intended to improve disclosures about a public business entity's expenses, primarily through additional disaggregation of income statement expenses.

ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted.

The amendments in ASU 2024-03 should be applied either prospectively to financial statements issued for reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements.

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

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 Consolidated Statements of Cash Flows instead of combined with depreciation and amortization.

Additionally, loss on disposal or impairment of property, plant and equipment and right-of-use assets is now included in Other, net in the Company's Consolidated Statements of Cash Flows.

NOTE 3 — REVENUES

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As disclosed below in Note 16, the Company has four geographic reportable segments:

United States ("U.S."), Latin America and Asia Pacific ("LAAP"), Europe, Middle East and Africa ("EMEA") and Canada.

U.S., Latin America and Asia Pacific ("LAAP"), Europe, Middle East and Africa ("EMEA"), and Canada.

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:

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Total $ 2,068,228 $ 560,706 $ 511,778 $ 227,870 $ 3,368,582

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Notes to Consolidated Financial Statements

Year Ended December 31, 2023

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Total $ 2,241,437 $ 519,754 $ 469,237 $ 256,775 $ 3,487,203

COLUMBIA SPORTSWEAR COMPANY | 2023 FORM 10-K | 49

Notes to Consolidated Financial Statements

Year Ended December 31, 2022

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PERFORMANCE OBLIGATIONS

For the years December 31, 2023, 2022 and 2021, Net sales recognized from performance obligations related to prior periods were not material.

For the years ended December 31, 2024, 2023, and 2022 Net sales recognized from performance obligations related to prior periods were not material.

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

CONTRACT BALANCES

As of December 31, 2023 and 2022, the Company did not have contract assets and had an immaterial amount of contract liabilities included in Accrued liabilities on the Consolidated Balance Sheets.

NOTE 4 — CONCENTRATIONS

TRADE RECEIVABLES

The Company had one customer that accounted for approximately 19.8 % and 13.8 % of Accounts receivable, net as of December 31, 2023 and 2022, respectively.

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

As of December 31, 2024 and 2023, the Company did not have any contract assets and had an immaterial amount of contract liabilities included in Accrued liabilities on the Consolidated Balance Sheets.

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Property, plant and equipment, net consisted of the following:

As of December 31,

(in thousands)

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Intangible assets, net consisted of the following:

As of December 31,

(in thousands)

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

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.

I ntangible assets subject to amortization were fully amortized as of December 31, 2024.

Amortization expense for intangible assets subject to amortization was $ 0.7 million for the year ended December 31, 2024 and $ 1.7 million for the years ended December 31, 2023 and 2022.

For the years ended December 31, 2024 and 2023, there was no im pairment recorded for intangible assets with indefinite lives.

For the year ended December 31, 2022, an impairment charge of $ 18.7 million was recorded for the impairment of prAna's trademark and trade name (collectively, "trademark").

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

The decline in

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 52

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 $ —

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

The following table sets forth the changes in Goodwill .

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Balance as of December 31, 2022

Gross $ 73,208

Accumulated impairment losses

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

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 included the cash flow projections and the discount rate.

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

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 .

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, 2024, there was no impairment recorded for goodwill.

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Notes to Consolidated Financial Statements

For the years ended December 31, 2023 and 2022, an impairment charge of $ 25.0 million and $ 16.9 million was recorded for the impairment of goodwill attributable to the prAna reporting unit, respectively.

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

For the year ended December 31, 2023, 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 year ended December 31, 2022, 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.

NOTE 6 — SHORT-TERM BORROWINGS AND CREDIT LINES

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A commitment fee ranging from 0.10 % to 0.20 % based on the Company's funded debt ratio is paid quarterly on the average daily unused commitment amount of the Credit Facility.

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Notes to Consolidated Financial Statements

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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As of December 31, 2024 and 2023, there was no balance outstanding.

INTERNATIONAL CREDIT FACILITIES

INTERNATIONAL CREDIT FACILITY

The Company's European subsidiary has available an unsecured, committed line of credit, which is guaranteed by the Company, and provides for borrowing up to a maximum of € 4.4 million (approximately US$ 4.6 million) as of December 31, 2024, with borrowings to accrue interest at a base rate plus 75 basis points.

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Accrued liabilities consisted of the following:

As of December 31,

(in thousands) 2024 2023

Sales reserves $ 96,857 $ 103,907

Accrued salaries, bonus, paid time off and other benefits 72,726 99,524

Accrued salaries, bonus, and other benefits

84,270 72,726

Accrued import duties 15,151 18,741

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$ 273,330 $ 272,058

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Notes to Consolidated Financial Statements

A reconciliation of product warranties is as follows:

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(in thousands) 2024 2023 2022

Balance at beginning of year $ 13,810 $ 13,645 $ 14,745

Balance at the beginning of the year

$ 11,620 $ 13,810 $ 13,645

Provision for warranty claims 2,132 877 3,627

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Other ( 270 ) 8 ( 299 )

Balance at end of year $ 11,620 $ 13,810 $ 13,645

Balance at the end of the year

$ 11,267 $ 11,620 $ 13,810

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Notes to Consolidated Financial Statements

NOTE 8 — LEASES

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$ 172,084 $ 159,359 $ 145,962

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.

For the year ended December 31, 2021, operating lease costs included $ 0.5 million of ROU asset impairment charges related to underperforming retail locations primarily in the EMEA.

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.

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

The following table presents supplemental cash flow information related to leases:

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Cash paid for amounts included in the measurement of operating lease liabilities $ 98,620 $ 85,793 $ 81,130

Operating lease liabilities arising from obtaining ROU assets (1)

Operating lease liabilities arising from obtaining lease ROU assets (1)

$ 128,605 $ 83,393 $ 51,976

Reductions to ROU assets resulting from reductions to operating lease liabilities $ 234 $ 52 $ 118

(1) Includes amounts added to the carrying amount of lease liabilities resulting from lease modifications and reassessments.

The following table presents supplemental balance sheet information related to leases:

As of December 31,

Weighted average remaining lease term 5.79 years 5.45 years

Weighted average discount rate 4.89 % 4.42 %

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Notes to Consolidated Financial Statements

The following table presents the future maturities of operating lease liabilities as of December 31, 2024:

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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.

As of December 31, 2024, the Company has additional commitments for operating leases that have not yet commenced of $ 13.6 million.

These leases will commence in 2025 with lease terms of approximately one to ten years .

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Notes to Consolidated Financial Statements

NOTE 9 — INCOME TAXES

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2024 2023 2022

United States operations $ 125,578 $ 243,695 $ 318,306

$ 83,120 $ 125,578 $ 243,695

Foreign operations 215,067 200,614 153,715

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State and local 8,394 6,879 11,191

Non-United States 33,109 25,615 33,825

40,651 33,109 25,615

81,118 79,927 89,309

Federal ( 11,925 ) ( 5,492 ) ( 13,248 )

State and local ( 1,258 ) ( 1,589 ) ( 710 )

Non-United States 1,946 10,619 667

6,979 1,946 10,619

( 6,204 ) ( 5,135 ) ( 3,339 )

Income tax expense $ 74,914 $ 74,792 $ 85,970

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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:

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State and local income taxes, net of federal benefit 1.9 1.2 1.6

Non-United States income taxed at different rates ( 1.4 ) ( 0.4 ) 2.7

Foreign tax credits — — ( 2.4 )

income taxed at different rates

( 0.5 ) ( 1.4 ) ( 0.4 )

Valuation allowance

Adjustment to deferred taxes — — 0.1

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Withholding taxes 0.4 1.0 0.2

Excess tax benefits from stock plans 0.1 — ( 0.9 )

Excess tax benefits from share-based compensation plans

Other 0.7 0.8 ( 0.6 )

Actual provision for income taxes 25.1 % 22.9 % 21.6 %

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Notes to Consolidated Financial Statements

DEFERRED INCOME TAX BALANCES

Significant components of the Company's deferred taxes consisted of the following:

As of December 31,

(in thousands)

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Accruals and allowances $ 37,436 $ 29,585

Lease liability 103,551 89,742

Lease liabilities

114,079 103,551

Capitalized inventory costs 17,895 20,589

Sales reserves 16,648 16,559

Stock compensation 9,166 7,659

Share-based compensation

Net operating loss carryforwards 2,550 1,720

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Prepaid expenses ( 3,216 ) ( 3,315 )

ROU lease asset ( 90,756 ) ( 78,274 )

Lease ROU assets

( 100,475 ) ( 90,756 )

Deferred tax liability associated with future repatriations ( 7,849 ) ( 11,657 )

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Total net deferred taxes $ 103,893 $ 105,508

(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.

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The Company had foreign net operating loss carryforwards of $ 12.1 million as of December 31, 2024, of which $ 11.7 million have a 15-year carryforward period and $ 0.4 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, 2024 and 2023, the net operating losses result in deferred tax assets of $ 2.6 million and $ 1.7 million, respectively, and were subject to a valuation allowance of $ 2.5 million and $ 0 , respectively.

As of December 31, 2024 , the Company had a foreign deferred tax asset of $ 10.7 million , which is subject to a valuation allowance of $ 8.2 million .

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

As of December 31, 2024, the Company had accumulated undistributed earnings generated by the Company's foreign subsidiaries of $ 295.5 million.

These earnings have been subject to U.S.

These earnings have already 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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UNRECOGNIZED TAX BENEFITS

The Company conducts business globally and, as a result, the Company or one or more of its subsidiaries file income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions.

The Company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as Canada, China, France, Japan, South Korea, Switzerland, and the United States.

The Company has effectively settled Canadian tax examinations of all years through 2018, United States tax examinations of all years through 2018, Japanese tax examinations of all years through 2019, France tax examinations of all years through 2016, Swiss tax examinations of all years through 2019, Italy tax examinations of all years through 2016, and China tax examinations of all years through 2018.

The Company conducts business globally and, as a result, the Company or one or more of its subsidiaries file income tax returns in the U.S.

federal jurisdiction and various state and foreign jurisdictions.

The Company is subject to examination by taxing authorities throughout the

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Notes to Consolidated Financial Statements

world, including major jurisdictions such as Canada, China, France, Japan, South Korea, Switzerland, and the U.S..

The Company has effectively settled France tax examinations of all years through 2016, Canadian tax examinations of all years through 2018, China tax examinations of all years through 2018, U.S.

tax examinations of all years through 2018, Japanese tax examinations of all years through 2019, and Swiss tax examinations of all years through 2019.

The Korean National Tax Service concluded an audit of the Company's 2009 through 2013 corporate income tax returns in 2014, an audit of the Company's 2014 corporate income tax return in 2016, and an audit of 2016 through 2020 corporate income tax returns in 2022.

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.

Due to the nature of the findings in the 2009 through 2014 audits, the Company has invoked the Mutual Agreement Procedures outlined in the U.S.-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 impacts to its financial condition, results of operations or cash flows.

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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 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 recognized a net increase of interest and penalties of $ 0.8 million and $ 2.7 million in 2024 and 2023, respectively, and a net decrease of interest and penalties of $ 0.8 million in 2022, all of which related to uncertain tax positions.

The Company had $ 5.3 million and $ 4.5 million of accrued interest and penalties related to uncertain tax positions as of December 31, 2024 and 2023, respectively.

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401(K) PROFIT-SHARING PLAN

The Company has a 401(k) profit-sharing plan, which covers substantially all United States employees.

The Company has a 401(k) profit-sharing plan, which covers substantially all U.S.

Participation begins the first day of the quarter following completion of 30 days of service.

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Participants earn a return on their deferred compensation based on investment earnings of participant-selected investments.

Deferred compensation, including accumulated earnings on the participant-directe d investment selections, is distributable in cash at participant-specified dates or upon retirement, death, disability, or termination of employment.

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Notes to Consolidated Financial Statements

The Company has purchased specific money market and mutual funds in the same amounts as the participant-directed investment selections underlying the deferred compensation liabilities.

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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

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Notes to Consolidated Financial Statements

in certain cases, may be indefinite.

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

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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, 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

Under this program as of December 31, 2024, the Company had repurchased 38.0 million shares at an aggregate purchase price of $ 1,972.4 million and had $ 627.6 million remaining available under the share repurchase program, excluding excise tax.

During the years December 31, 2024 and 2023, the Company repurchased an aggregate of $ 317.8 million and $ 184.0 million, respectively, of common stock under this program, excluding excise tax.

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Notes to Consolidated Financial Statements

NOTE 13 — SHARE-BASED COMPENSATION

At its Annual Meeting held on June 3, 2020, the Company’s shareholders approved the Company’s 2020 Stock Incentive Plan (the “2020 Plan”), and the 2020 Plan became effective on that date following such approval.

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As of December 31, 2024, 2,223,759 shares were available for future grants under the 2020 Plan.

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.

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 share-based or cash-based awards to officers, executives, key employees and nonemployee members of the Company’s Board of Directors.

The Company uses original issuance shares to satisfy share-based payments.

STOCK-BASED COMPENSATION EXPENSE

Stock-based compensation expense consisted of the following:

SHARE-BASED COMPENSATION EXPENSE

Share-based compensation expense, which is primarily recorded in SG&A expenses , consisted of the following:

Year Ended December 31,

(in thousands) 2024 2023 2022

Cost of sales $ 311 $ 312 $ 313

SG&A expenses 22,740 20,709 18,813

Pre-tax stock-based compensation expense 23,051 21,021 19,126

Share-based compensation expense - equity awards

$ 24,777 $ 23,051 $ 21,021

Share-based compensation expense - liability awards

Pre-tax share-based compensation expense

25,167 23,051 21,021

Income tax benefits ( 5,774 ) ( 5,365 ) ( 4,867 )

Total stock-based compensation expense, net of tax $ 17,686 $ 16,154 $ 14,661

The Company realized a tax benefit for the deduction from stock-based award transactions of $ 3.9 million, $ 3.6 million and $ 8.3 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Total share-based compensation expense, net of tax

$ 19,393 $ 17,686 $ 16,154

The Company realized a tax benefit for the deduction from share-based award transactions of $ 3.7 million, $ 3.9 million and $ 3.6 million for the years ended December 31, 2024, 2023 and 2022, respectively.

STOCK OPTIONS

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

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.

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.

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.

The expected volatility is estimated based on observations of the Company's historical volatility over the most recent term commensurate with the expected term.

The risk-free interest rate is based on the United States Treasury yield approximating the expected term.

The risk-free interest rate is based on the U.S.

Treasury yield approximating the expected term.

The dividend yield is based on the expected cash dividend payouts.

The weighted average assumptions for stock options granted and resulting fair value is as follows:

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Notes to Consolidated Financial Statements

Year Ended December 31,

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(in thousands)

Options outstanding as of December 31, 2020

1,919,163 $ 74.45 7.19 $ 29,489

Granted 687,772 95.90

Forfeited or expired ( 213,444 ) 89.96

Exercised ( 459,957 ) 62.58

Options outstanding as of December 31, 2021

Outstanding as of December 31, 2023

2,280,014 $ 87.08

Granted 156,277 82.55

Forfeited or expired ( 223,813 ) 91.09

Exercised ( 94,391 ) 64.84

Options outstanding as of December 31, 2022

2,154,907 85.37 7.02 13,929

Granted 500,219 88.39

Forfeited or expired ( 195,252 ) 90.24

Exercised ( 129,008 ) 57.00

Options outstanding as of December 31, 2023

Outstanding as of December 31, 2024

2,146,648 $ 87.44 6.16 $ 5,925

Options vested and expected to vest as of December 31, 2023

Vested and expected to vest as of December 31, 2024

2,104,270 $ 87.46 6.11 $ 5,886

Options exercisable as of December 31, 2023

Exercisable as of December 31, 2024

1,434,401 $ 87.07 5.30 $ 5,475

(1) The aggregate intrinsic value above represents pre-tax intrinsic value that would have been realized if all options had been exercised on the last business day of the period indicated, based on the Company's closing stock price on that day.

Stock option compensation expense was $ 8.2 million, $ 7.8 million and $ 6.9 million for the years ended December 31, 2023, 2022 and 2021, respectively.

As of December 31, 2023, unrecognized costs related to outstanding stock options totaled $ 13.0 million, before any related tax benefit.

The unrecognized costs related to stock options are being amortized over the related vesting period using the straight-line attribution method.

These unrecognized costs related to stock options are being amortized over a weighted average period of 2.26 years.

Stock option compensation expense net of estimated forfeitures, was $ 6.4 million, $ 8.2 million and $ 7.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.

As of December 31, 2024, unrecognized costs related to outstanding stock options was net of estimated forfeitures and totaled $ 8.9 million, before any related tax benefit.

These unrecognized costs related to stock options are expected to be recognized over a weighted average period of 1.88 years.

The aggregate intrinsic value of stock options exercised was $ 1.8 million, $ 3.0 million and $ 3.4 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The total cash received as a result of stock option exercises was $ 6.1 million, $ 7.4 million and $ 6.6 million for the years ended December 31, 2024, 2023 and 2022, respectively.

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Notes to Consolidated Financial Statements

RESTRICTED STOCK UNITS

Service-based restricted stock units are granted at no cost to key employees and generally vest over a period of four years.

Performance-based restricted stock units are granted at no cost to certain members of the Company's senior executive team, excluding the Chief Executive Officer.

Performance-based restricted stock units granted after 2009 generally vest over a performance period of between two and three years.

Restricted stock units vest in accordance with the terms and conditions established by the Compensation Committee of the Board of Directors, and are based on continued service and, in some instances, on individual performance or Company performance or both.

The fair value of service-based and performance-based restricted stock units that are not eligible for dividends are valued at the closing price of the Company’s common stock on the date of grant, reduced by the present value of dividends not received during the vesting period.

Time-Based Restricted Stock Units

The Company has historically disclosed its Restricted Stock Units footnote on an aggregated basis to include both time and performance-based restricted stock units.

The Company’s performance-based restricted stock units, representing 23,374 outstanding shares as of December 31, 2023, and the corresponding weighted average grant date fair value assumptions, compensation expense recognized, and total fair value of shares vested have been disclosed separately between time and performance-based restricted stock units for all related periods presented to conform to current year presentation.

Time-based restricted stock units (“time-based RSUs”) are granted at no cost to officers, executives, key employees, and nonemployee members of the Company’s Board of Directors and generally vest over a period of four years .

Time-based RSUs granted to nonemployee members of the Company’s Board of Directors vest over a period of one year .

Time-based RSUs vest in accordance with the terms and conditions established by the Talent and Compensation Committee of the Board of Directors, and are based on continued service.

Dividend equivalents do not accrue on time-based RSUs.

The fair value of time-based RSUs is determined using the closing price of the Company’s common stock on the date of grant, reduced by the present value of dividends not received during the vesting period.

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

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

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Notes to Consolidated Financial Statements

The weighted average assumptions for time-based RSUs granted and resulting fair value is as follows:

Year Ended December 31,

2 unchanged sentences

Expected annual dividend yield 1.45 % 1.39 % 1.30 %

Weighted average grant date fair value per restricted stock unit granted $ 82.49 $ 85.27 $ 96.07

The following table summarizes the restricted stock unit activity under the Plan:

Restricted Stock Units

Weighted average grant date fair value per time-based RSU granted $ 78.26 $ 82.37 $ 85.25

The following table summarizes the time-based RSU activity under the Plan:

Weighted Average

Grant Date Fair Value Per Unit

Restricted stock units outstanding as of December 31, 2020

Grant Date Fair Value

Outstanding as of December 31, 2023

455,641 $ 84.77

2 unchanged sentences

Forfeited ( 61,637 ) 81.85

Restricted stock units outstanding as of December 31, 2021

Outstanding as of December 31, 2024

586,016 $ 81.13

Granted 247,860 85.27

(1) The number of awards vested is net of shares withheld by the Company to pay up to maximum statutory requirements to taxing authorities on behalf of the employee.

For the year ended December 31, 2024, the Company withheld 59,877 to satisfy $ 4.9 million of employees' tax obligations for time-based RSUs.

Time-based RSU compensation expense, net of estimated forfeitures, was $ 17.2 million, $ 14.3 million and $ 12.7 million for the years ended December 31, 2024, 2023 and 2022, respectively.

As of December 31, 2024, unrecognized costs related to time-based RSUs was net of estimated forfeitures and totaled $ 30.5 million, before any related tax benefit.

These unrecognized costs as of December 31, 2024 are expected to be recognized over a weighted average period of 2.44 years.

The total fair value of shares vested for time-based RSUs was $ 14.4 million, $ 13.1 million and $ 12.1 million during the years ended December 31, 2024, 2023 and 2022, respectively, computed as of the date of vesting.

Performance-Based Restricted Stock Units

Performance-based restricted stock units (“performance-based RSUs”) are granted at no cost to certain members of the Company's executive team, excluding the Chief Executive Officer, and are subject to performance and time-based vesting conditions.

The number of shares earned by participants, if any, is based on the achievement of the multi-year financial performance targets set by the Talent and Compensation Committee of the Board of Directors and, for some awards, the Company’s financial performance relative to certain comparator companies.

The number of performance-based RSUs earned may be adjusted upward or downward, resulting in a minimum and maximum payout of 0 % and 200 %, respectively, based on actual performance.

Performance-based RSUs vest in accordance with the terms and conditions established by the Talent and Compensation Committee of the Board of Directors, and are based on continued service and Company performance over a period of approximately two to three years .

Dividend equivalents do not accrue on performance-based RSUs.

The grant date fair value of performance-based RSUs is determined using the closing price of the Company’s common stock on the date of grant, reduced by the present value of dividends not received during the vesting period.

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

The weighted average assumptions for performance-based RSUs granted and resulting fair value is as follows:

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 62

Notes to Consolidated Financial Statements

Year Ended December 31,

2024 2023 2022

Forfeited ( 64,925 ) 89.29

Restricted stock units outstanding as of December 31, 2022

Vesting period 2.82 years 2.99 years 2.87 years

Expected annual dividend yield 1.50 % 1.36 % 1.35 %

Weighted average grant date fair value per performance-based RSU granted

$ 76.54 $ 84.77 $ 85.64

The following table summarizes the performance-based RSU activity under the Plan:

Number of Shares (1)

Weighted Average

Grant Date Fair Value

Outstanding as of December 31, 2023

23,374 $ 85.18

Granted 30,533 76.54

Forfeited ( 2,028 ) 83.73

Outstanding as of December 31, 2024

51,879 $ 80.15

(1) Reflects activity at target level of awards and has not been adjusted for performance conditions, except for awards that vested during the period.

(2) The number of awards vested is net of shares withheld by the Company to pay up to maximum statutory requirements to taxing authorities on behalf of the employee.

For the year ended December 31, 2024, the Company did not withhold any shares to satisfy employees' tax obligations since no awards vested.

Performance-based RSU compensation expense, net of estimated forfeitures, was $ 0.6 million, $ 0.5 million and $ 0.5 million for the years ended December 31, 2024, 2023 and 2022, respectively.

As of December 31, 2024 unrecognized costs related to performance-based RSUs, which are net of estimated forfeitures and reflect achievement of performance forecasted as of the balance sheet date, totaled $ 0.9 million, before any related tax benefit.

These unrecognized costs as of December 31, 2024 are expected to be recognized over a weighted average period of 1.46 years.

No shares vested for performance-based RSUs during the year ended December 31, 2024.

The total fair value of shares vested for performance-based RSUs was $ 0.6 million and $ 0.3 million during the years ended December 31, 2023 and 2022, respectively, computed as of the date of vesting.

Market-Based Restricted Stock Units

Market-based restricted stock units (“market-based RSUs”) are granted at no cost to certain members of the Company's executive team, excluding the Chief Executive Officer, and are subject to market and time-based vesting conditions.

Market-based RSUs vest in accordance with the terms and conditions established by the Talent and Compensation Committee of the Board of Directors, and are based on continued service and relative total shareholder return of the Company against a comparator group over a period of approximately three years .

The number of market-based RSUs earned may be adjusted upward or downward, resulting in a minimum and maximum payout of 0 % and 200 %, respectively, based on actual performance.

Dividend equivalents do not accrue on market-based RSUs.

The grant date fair value of market-based RSUs is determined using a Monte Carlo model that simulates a distribution of stock prices for the Company and comparator companies throughout the performance period.

Assumptions incorporated into the grant date fair value include the vesting period, expected annual dividend yield, volatility, and correlation coefficients.

The weighted average assumptions for market-based RSUs granted and resulting fair value is as follows:

Year Ended December 31,

2024 2023 2022

Vesting period 2.82 years 0 years 0 years

Weighted average grant date fair value per market-based RSU granted

$ 89.25 $ — $ —

The following table summarizes the market-based RSU activity under the Plan:

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 63

Notes to Consolidated Financial Statements

Number of Shares (1)

Weighted Average

Grant Date Fair Value

Outstanding as of December 31, 2023

Granted 26,613 89.25

Forfeited ( 340 ) 89.25

Restricted stock units outstanding as of December 31, 2023

Outstanding as of December 31, 2024

26,273 $ 89.25

(1) The number of vested units includes shares withheld by the Company to pay up to maximum statutory requirements to taxing authorities on behalf of the employee.

For the years ended December 31, 2023, 2022 and 2021, the Company withheld 52,615 , 47,130 and 56,792 shares, respectively, to satisfy $ 4.7 million, $ 4.2 million and $ 5.8 million of employees' tax obligations, respectively.

Restricted stock unit compensation expense was $ 14.9 million, $ 13.2 million and $ 12.2 million for the years ended December 31, 2023, 2022 and 2021, respectively.

As of December 31, 2023, unrecognized costs related to restricted stock units totaled $ 25.1 million, before any related tax benefit.

The unrecognized costs related to restricted stock units are being amortized over the related vesting period using the straight-line attribution method.

(1) Reflects activity at target level of awards and has not been adjusted for market conditions, except for awards that vested during the period.

(2) The number of awards vested is net of shares withheld by the Company to pay up to maximum statutory requirements to taxing authorities on behalf of the employee.

For the year ended December 31, 2024, the Company did not withhold any shares to satisfy employees' tax obligations since no awards vested.

Market-based RSU compensation expense, net of estimated forfeitures, was $ 0.6 million, $ 0 and $ 0 for the years ended December 31, 2024, 2023 and 2022, respectively.

As of December 31, 2024, unrecognized costs, net of estimated forfeitures, related to market-based RSUs totaled $ 1.5 million, before any related tax benefit.

These unrecognized costs as of December 31, 2024 are expected to be recognized over a weighted average period of 2 years.

The total grant date fair value of restricted stock units vested was $ 13.7 million, $ 12.4 million and $ 12.4 million during the years ended December 31, 2023, 2022 and 2021, respectively.

No market-based RSUs were outstanding during the years ended December 31, 2023 or 2022, and no shares vested for market-based RSUs during the years ended December 31, 2024, 2023 and 2022.

Market-Based Long-Term Cash Award

In 2024 the Company issued a long-term cash award to its Chief Executive Officer with a target value of $ 1.2 million that includes both a market and time-based vesting condition.

The market-based long-term cash award is liability classified and vests in accordance with the terms and conditions established by the Talent and Compensation Committee of the Board of Directors, and is based on continued service and relative total shareholder return of the Company against a comparator group over a period of approximately three years .

The amount of the long-term cash award earned may be adjusted upward or downward, resulting in a minimum and maximum payout of 0 % and 200 %, respectively, based on actual performance.

The fair value of the market-based long-term cash award was determined using a Monte Carlo model that simulates a distribution of stock prices for the Company and comparator companies throughout the performance period.

Compensation expense recognized for the year ended December 31, 2024 was $ 0.4 million.

Fair value of the award as of December 31, 2024 was $ 1.3 million and the Company had unrecognized compensation costs of $ 0.9 million.

These unrecognized costs as of December 31, 2024 are expected to be recognized over a weighted average period of 2 years.

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 64

16 unchanged sentences

Diluted $ 3.82 $ 4.09 $ 4.95

Anti-dilutive common shares (1)

Weighted average common shares excluded (1)

1,932 1,996 1,735

(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.

(1) Common stock related to stock options, time-based restricted stock units, 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 | 2024 FORM 10-K | 65

25 unchanged sentences

$ 84 $ 23,394 $ ( 86,700 ) $ ( 63,222 )

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

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

Refer to Note 17 for further information regarding reclassifications.

COLUMBIA SPORTSWEAR COMPANY | 2023 FORM 10-K | 63

Notes to Consolidated Financial Statements

NOTE 16 — SEGMENT INFORMATION

The Company has four reportable geographic segments:

U.S., LAAP, EMEA, and Canada, which are reflective of the Company's internal organization, management and oversight structure.

The Company defines its operating segments on the basis of the way in which internally reported financial information is regularly reviewed by the chief operating decision maker ("CODM") to analyze performance, make decisions, and allocate resources.

The Company aggregates its operating segments with similar economic and operating characteristics into four reportable segments:

U.S., LAAP, EMEA, and Canada.

These reportable segments are organized by geographic location.

Each geographic segment operates predominantly in one industry:

the design, development, marketing, and distribution of outdoor, active and lifestyle products, including apparel, footwear, accessories, and equipment.

The Company’s CODM is the Company’s president and chief executive officer.

The Company’s CODM assesses the segments’ performance by using each segment's operating income.

The CODM uses each segment's operating income to allocate resources predominantly in the annual budget and forecasting process.

The CODM considers plan-to-actual variances on a quarterly basis for the segment operating income profit measure when making decisions about the allocation of operating and capital resources to each segment.

The CODM also uses this profit measure to assess the performance of each segment by comparing the results of each segment with one another, and in the overall strategic planning for each segment.

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, goodwill and intangible asset impairment charges and other miscellaneous costs.

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

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.

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 66

Notes to Consolidated Financial Statements

The following tables present segment financial information for the Company's reportable segments for the years ended December 31, 2024, 2023, and 2022:

Year Ended December 31, 2024

1 unchanged sentence

$ 2,068,228 $ 560,706 $ 511,778 $ 227,870 $ 3,368,582

Net sales to unrelated entities:

Cost of sales

1,051,855 247,506 264,434 113,702 1,677,497

LAAP 519,754 473,866 465,499

EMEA 469,237 438,554 382,060

Canada 256,775 249,486 218,543

Segment selling, general and administrative expenses

577,295 207,248 126,121 49,187 959,851

Other segment items (a)

82,356 28,944 17,737 17,184 146,221

Segment operating income

356,722 77,008 103,486 47,797 585,013

LAAP 61,824 47,025 42,025

EMEA 98,943 80,192 65,496

Canada 55,599 52,957 52,731

Total segment operating income 632,097 699,986 696,727

Reconciliation to income before income tax:

Unallocated corporate expenses

Operating income 270,741

Interest income, net

Other non-operating income (expense), net 2,221 1,593 ( 373 )

Other non-operating expense ( 257 )

Income before income tax $ 298,187

(a) For each reportable segment, other segment items include certain corporate expenses and net licensing income allocated to each of the reportable segments, as well as net licensing income directly attributable to each of the reportable segments.

Year Ended December 31, 2023

(in thousands)

$ 2,241,437 $ 519,754 $ 469,237 $ 256,775 $ 3,487,203

Cost of sales

1,150,610 227,304 244,570 134,787 1,757,271

Segment selling, general and administrative expenses

591,748 200,939 110,702 49,050 952,439

Other segment items (a)

83,348 29,687 15,022 17,339 145,396

Segment operating income

415,731 61,824 98,943 55,599 632,097

Reconciliation to income before income tax:

Unallocated corporate expenses

Operating income

Interest income, net

Other non-operating income

Income before income tax

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 67

Notes to Consolidated Financial Statements

Year Ended December 31, 2022

(in thousands)

$ 2,302,246 $ 473,866 $ 438,554 $ 249,486 $ 3,464,152

Cost of sales

1,165,429 208,803 244,747 134,095 1,753,074

Segment selling, general and administrative expenses

537,044 192,315 98,477 43,559 871,395

Other segment items (a)

79,961 25,723 15,138 18,875 139,697

Segment operating income

519,812 47,025 80,192 52,957 699,986

Reconciliation to income before income tax:

Unallocated corporate expenses

Operating income

Interest income, net

Other non-operating income

Income before income tax

The following table presents segment depreciation and amortization expense information for the years ended December 31, 2024, 2023 and 2022:

Year Ended December 31,

(in thousands)

2024 2023 2022

Depreciation and amortization expense:

5 unchanged sentences

$ 55,944 $ 58,063 $ 54,752

The following table presents segment asset information, as well as long-lived asset information by geographic area as of December 31, 2024 and 2023.

The Company has historically limited its disclosure of entity-wide information about geographic areas to property, plant, and equipment, net.

In connection with the preparation of its 2024 disclosure, the Company expanded its disclosure to include lease ROU assets and CCA assets.

Accordingly, the entity-wide information about geographic areas in the table below has been revised from the amount previously reported for 2023 to include lease ROU assets and CCA assets.

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 68

Notes to Consolidated Financial Statements

As of December 31,

(in thousands)

Accounts receivable, net:

$ 450,014 $ 487,860

2 unchanged sentences

Canada 51,973 62,340

Total segment assets

690,515 746,288

All other assets

2,284,750 2,192,725

LAAP 106,785 105,158

EMEA 89,303 98,777

Canada 62,340 76,848

$ 2,975,265 $ 2,939,013

Property, plant and equipment, net:

Long-lived assets, net:

$ 545,401 $ 540,534

Canada 25,174 25,350

All other countries 150,995 122,878

$ 696,396 $ 663,412

CONCENTRATIONS

No single customer accounted for 10% or more of Net sales for any of the years ended December 31, 2024, 2023 or 2022.

NOTE 17 — FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

4 unchanged sentences

The Company actively manages the risk of changes in functional currency equivalent cash flows resulting from anticipated non-functional currency denominated purchases and sales.

Subsidiaries that use European euros, Canadian dollars, Japanese yen, Chinese renminbi, or Korean won as their functional currency are primarily exposed to changes in functional currency equivalent cash flows from anticipated United States dollar inventory purchases.

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.

dollar inventory purchases.

Subsidiaries that use U.S.

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.

1 unchanged sentence

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 .

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.

These costs or benefits are included in Accumulated other comprehensive income (loss) until the underlying hedged 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 .

dollars, euros, Canadian dollars, yen, renminbi, or won as their functional currency.

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

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

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.

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 69

1 unchanged sentence

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

As of December 31,

(in thousands) 2024 2023

3 unchanged sentences

Currency forward contracts $ 263,103 $ 342,532

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 .

As of December 31, 2024, $ 18.9 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 Consolidated Statements of Operations.

When outstanding derivative contracts mature, actual amounts ultimately reclassified to Net sales or Cost of sales in the Consolidated Statements of Operations are dependent on U.S.

dollar exchange rates in effect against the euro, renminbi, Canadian dollar, won, and yen as well as the euro exchange rate in effect against the pound sterling.

As of December 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 $ 11.8 million as of December 31, 2024.

3 unchanged sentences

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

As of December 31,

(in thousands) Balance Sheet Classification 2024 2023

17 unchanged sentences

Derivative instruments designated as cash flow hedges:

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

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

— $ 31,252 $ ( 849 ) $ 20,724

Gain (loss) reclassified from accumulated other comprehensive income (loss) to income for the effective portion

Gain (loss) reclassified from accumulated other comprehensive income to income for the effective portion

Net sales $ ( 1,655 ) $ 60 $ ( 146 )

Gain (loss) reclassified from accumulated other comprehensive income (loss) to income for the effective portion

Gain reclassified from accumulated other comprehensive income to income for the effective portion

Cost of sales $ 17,688 $ 23,307 $ 12,100

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

Other non-operating income, net

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

Other non-operating income (expense), net

$ 130 $ 521 $ 320

Derivative instruments not designated as cash flow hedges:

Loss recognized in income

Other non-operating income, net

Gain (loss) recognized in income

Other non-operating income (expense), net

$ 5,824 $ ( 1,822 ) $ ( 1,955 )

11 unchanged sentences

Notes to Consolidated Financial Statements

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

Assets and liabilities measured at fair value on a recurring basis are as follows:

As of December 31, 2024

(in thousands) Level 1 Level 2 Level 3 Total

2 unchanged sentences

government treasury bills

— 84,622 — 84,622

Time deposits (1)

3 unchanged sentences

government treasury bills

— 281,499 — 281,499

Other short-term investments:

13 unchanged sentences

Total liabilities measured at fair value $ — $ 1,738 $ — $ 1,738

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

(1) Time deposits are carried at amortized cost on the 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 Consolidated Financial Statements

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 are as follows:

Assets and liabilities measured at fair value on a recurring basis are as follows:

As of December 31, 2023

(in thousands) Level 1 Level 2 Level 3 Total

1 unchanged sentence

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 Sheets, which reasonably approximates fair value.

(2) 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 trademark indefinite-lived intangible assets and goodwill as part of impairment testing for the year ended December 31, 2023.

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, 2024 and 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 5 in Part II, Item 8 in the Annual Report on Form 10-K for further discussion.

NOTE 19 — SUPPLY CHAIN FINANCING

In the third quarter of 2024, the Company began to offer a voluntary supply chain financing (“SCF”) program facilitated through a third-party service provider.

Under the program, participating suppliers may, at their sole discretion, elect to receive payment from a select number of third-party financial institutions for one or more of the Company’s valid payment obligations prior to their scheduled due dates.

The Company is not a party to the agreements between the participating financial institutions and the suppliers in connection with the program.

The Company’s payment terms, including the timing and amount of payments, are based on the original supplier invoices, irrespective of whether a supplier participates in the program.

The Company does not have an economic interest in a supplier’s decision to participate in the program and has not pledged any assets as security or provided any guarantees as part of the program.

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 73

Notes to Consolidated Financial Statements

The Company’s outstanding payables under the SCF program were recorded within Accounts payable on the Consolidated Balance Sheets.

Changes in the amount of outstanding payables under the SCF program were as follows:

Year ended December 31,

(in thousands) 2024

Confirmed obligations outstanding as of July 1

Invoices confirmed during the year

Confirmed invoices paid during the year

Confirmed obligations outstanding as of December 31

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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