What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-25 compared with 2025-02-27 · 555 added, 482 removed, 808 unchanged (56% of the section changed)

27 unchanged sentences

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

Intangible Assets, Net – prAna Trade name – Refer to Notes 2 and 9 to the consolidated financial statements

Critical Audit Matter Description

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

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.

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

As of December 31, 2025, the carrying value of the Intangible assets, net was $71.2 million, of which $43.8 million was attributed to prAna’s trade name.

The Company uses the relief from royalty method to estimate fair value, which requires management to make significant estimates and assumptions related to the royalty rate and discount rate to estimate the fair value of the prAna trade name.

Auditing management’s estimates and assumptions related to the royalty rate and discount rate for prAna's trade name valuation involved especially subjective judgment.

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 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.

Our audit procedures related to management’s estimates and assumptions related to the royalty rate for the prAna trade name valuation included the following, among others:

• We tested the effectiveness of controls over intangible assets, including those over the selection of the royalty rate and discount rate.

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

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• 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 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.

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

◦ 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.

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

/s/ DELOITTE & TOUCHE LLP

68 unchanged sentences

250,000 shares authorized;

56,245 and 59,996 issued outstanding, respectively

53,495 and 56,245 issued and outstanding, respectively

Retained earnings 1,775,796 1,843,261

16 unchanged sentences

Operating income

207,039 270,741 310,284

Interest income, net 17,867 27,703 13,687

1 unchanged sentence

Income before income tax

229,624 298,187 326,192

Income tax expense

Net income $ 223,273 $ 251,400 $ 311,440

52,400 74,914 74,792

$ 177,224 $ 223,273 $ 251,400

Earnings per share:

10 unchanged sentences

(in thousands) 2025 2024 2023

Net income $ 223,273 $ 251,400 $ 311,440

Other comprehensive income (loss):

$ 177,224 $ 223,273 $ 251,400

Other comprehensive loss:

Change in available-for-sale securities (net of tax effect of $( 4 ), $ 20 and $ 46 , respectively)

11 ( 61 ) 145

Change in derivative transactions (net of tax effects of $ 8,582 , $( 5,963 ) and $ 6,662 , respectively)

12 unchanged sentences

Net income $ 177,224 $ 223,273 $ 251,400

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

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

Depreciation and amortization 56,835 55,944 58,063

4 unchanged sentences

24,238 24,777 23,051

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

Loss on impairment of goodwill, intangible assets, and property, plant and equipment

39,112 2,679 26,335

Other, net ( 6,193 ) ( 13,681 ) 39

9 unchanged sentences

Other liabilities 5,049 3,556 6,684

Net cash provided by (used in) operating activities 491,042 636,297 ( 25,241 )

Net cash provided by operating activities 282,903 491,042 636,297

Cash flows from investing activities:

6 unchanged sentences

Repayments on credit facilities — — ( 837 )

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

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

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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

33 unchanged sentences

Note 3 Revenues 49

Note 4 Segment Information 50

Note 5 Share-Based Compensation 52

Note 6 Earnings Per Share 57

Note 7 Property, Plant and Equipment, Net 58

Note 8 Leases 58

Note 9 Intangible Assets, Net and Goodwill 59

Note 10 Income Taxes 61

Note 11 Short-Term Borrowings and Credit Lines 65

Note 12 Supply Chain Financing 66

Note 13 Accrued Liabilities 66

Note 8 Leases 55

Note 9 Income Taxes 56

Note 14 Retirement Savings Plans 67

1 unchanged sentence

Note 16 Shareholders' Equity 68

Note 13 Share-Based Compensation 60

Note 14 Earnings Per Share 65

Note 15 Accumulated Other Comprehensive Income (Loss) 66

Note 16 Segment Information 66

Note 17 Accumulated Other Comprehensive Loss 68

Note 18 Financial Instruments and Risk Management 68

Note 19 Fair Value Measures 70

Note 19 Supply Chain Financing 73

Note 20 Subsequent Events 72

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 43

8 unchanged sentences

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results may differ from these estimates and assumptions.

Accordingly, actual results may differ from these estimates and assumptions.

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.

2 unchanged sentences

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, 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.

As of December 31, 2025, Cash and cash equivalents consisted of cash, money market funds, United States ("U.S.") government treasury bills, time deposits, and commercial paper.

As of December 31, 2024, Cash and cash equivalents consisted of cash, money market funds, U.S.

government treasury bills, and time deposits.

As of December 31, 2025, Short-term investments consisted of U.S.

government treasury bills and commercial paper, 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, 2024, 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) .

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 expenses ("SG&A expenses").

government treasury bills and commercial paper are classified as available-for-sale debt securities and are recorded at fair value with any unrealized gains or losses reported, net of tax, in Other comprehensive loss .

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

a corresponding deferred compensation liability adjustment is recorded separately, resulting in no overall net effect on the Company’s Consolidated Statements of Operations.

As of December 31, 2025 and 2024, long-term investments included in Other non-current assets consisted of money market funds and mutual fund shares held to offset liabilities to participants in the Company's deferred compensation plan.

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

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

These investments are recorded at fair value with gains and losses reported in SG&A expenses ;

a corresponding deferred compensation liability adjustment is recorded separately, resulting in no overall net effect on the Company’s Consolidated Statements of Operations.

ALLOWANCE FOR DOUBTFUL ACCOUNTS

1 unchanged sentence

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

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

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

The allowance represents the current estimate of

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Notes to Consolidated Financial Statements

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

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

Write-offs of accounts receivable were $ 1.6 million and $ 2.5 million for the years ended December 31, 2025 and 2024 , respectively.

1 unchanged sentence

Cost is determined using standard cost, which approximates the first-in, first-out method.

The Company periodically reviews its inventories for excess, close-out or slow-moving items and makes provisions as necessary to properly reflect inventory value.

The Company regularly reviews its inventories for excess, close-out or slow-moving items and makes provisions as necessary to properly reflect inventory value.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at cost, net of accumulated depreciation.

Property, plant and equipment ("PP&E") are stated at cost, net of accumulated depreciation.

Depreciation is provided using the straight-line method over the estimated useful lives of the assets.

5 unchanged sentences

Leasehold improvements are depreciated over the lesser of the estimated useful life of the improvement, which is most commonly 7 years, or the remaining term of the underlying lease.

Improvements to property, plant and equipment that substantially extend the useful life of the asset are capitalized.

Improvements to PP&E that substantially extend the useful life of the asset are capitalized.

Repair and maintenance costs are expensed as incurred.

8 unchanged sentences

IMPAIRMENT OF LONG-LIVED ASSETS

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.

Long-lived assets, which include PP&E, 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.

2 unchanged sentences

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

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.

During 2025, the Company tested certain long-lived assets for impairment at certain underperforming retail locations.

Refer to Note 7 for further information regarding impairment charges recorded to PP&E.

DEFINITE-LIVED INTANGIBLE ASSETS

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 | 2025 FORM 10-K | 45

Notes to Consolidated Financial Statements

carrying amount.

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

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.

Indefinite-lived intangible assets (which consists of trade names and trademarks) (collectively, "trade names") and goodwill reporting units are tested for impairment annually or when events or changes in circumstances indicate that it is more likely than not that the fair value of the asset is less than its carrying amount (a "triggering event").

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

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.

For both trade names 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.

During 2025, the Company tested prAna and Mountain Hardwear trade names and goodwill reporting units for impairment.

Refer to Note 9 for further information regarding these impairments.

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

4 unchanged sentences

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

Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years or more.

Most leases include one or more options to renew, with renewal terms that can extend the lease term from approximately one to 10 years or more.

The exercise of lease renewal options is generally at the Company's sole discretion.

31 unchanged sentences

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

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

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

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

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

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

7 unchanged sentences

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.

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

REVENUE RECOGNITION

6 unchanged sentences

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.

As a result, the Company adjusts estimates of revenue at the earlier of when the most likely amount of consideration the Company expects to

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Notes to Consolidated Financial Statements

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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RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

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

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

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

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

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

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

The Company adopted ASU 2023-09 on a retrospective basis within this Annual Report on Form 10-K.

1 unchanged sentence

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED

In December 2023, the FASB issued ASU No.

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

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

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

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.

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

The amendments are effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted.

The amendments may be applied prospectively or retrospectively.

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

In September 2025, the FASB issued ASU No.

2025-06 ("ASU 2025-06"), Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software, which includes amendments intended to modernize the accounting for software costs by removing references to software development stages and clarifying the capitalization threshold.

The amendments are effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted.

The amendments may be applied prospectively, retrospectively, or through a modified transition approach.

The Company is currently evaluating the ASU to determine the impact on the Company's consolidated financial statements and related 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.

Loss on impairment of PP&E is now included in Loss on impairment of goodwill, intangible assets, and property plant, and equipment in the Company's Consolidated Statements of Cash Flows instead of combined with Other, net .

NOTE 3 — REVENUES

8 unchanged sentences

Apparel, accessories and equipment

$ 1,648,402 $ 478,085 $ 416,142 $ 169,761 $ 2,712,390

Footwear 330,631 133,064 160,778 60,488 684,961

11 unchanged sentences

Apparel, accessories and equipment

$ 1,727,076 $ 437,325 $ 355,353 $ 167,420 $ 2,687,174

Footwear 341,152 123,381 156,425 60,450 681,408

15 unchanged sentences

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

PERFORMANCE OBLIGATIONS

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, 2025 and 2024, 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.

NOTE 4 — SEGMENT INFORMATION

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 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 information technology, certain supply chain functions, finance, human resources, and legal, as well as executive compensation, unallocated benefit program expense, intangible asset and goodwill impairment charges, and other miscellaneous costs.

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Notes to Consolidated Financial Statements

NOTE 4 — PROPERTY, PLANT AND EQUIPMENT, NET

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

As of December 31,

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

Year Ended December 31, 2025

(in thousands)

Land and improvements $ 32,862 $ 33,028

Buildings and improvements 226,336 226,510

Machinery, software and equipment 405,909 397,310

Furniture and fixtures 127,366 115,430

Leasehold improvements 184,800 176,731

Construction in progress 15,420 10,202

$ 1,979,033 $ 611,149 $ 576,920 $ 230,249 $ 3,397,351

Less accumulated depreciation ( 709,785 ) ( 671,930 )

$ 282,908 $ 287,281

Depreciation expense for Property, plant and equipment, net was $ 55.3 million, $ 56.4 million, and $ 53.1 million for the years ended December 31, 2024, 2023 and 2022, respectively.

NOTE 5 — INTANGIBLE ASSETS, NET AND GOODWILL

INTANGIBLE ASSETS, NET

Intangible assets, net consisted of the following:

As of December 31,

(in thousands)

Intangible assets with definite lives:

Patents and purchased technology $ 14,198 $ 14,198

Customer relationships 23,000 23,000

Gross carrying amount 37,198 37,198

Accumulated amortization:

Patents and purchased technology ( 14,198 ) ( 14,198 )

Customer relationships ( 23,000 ) ( 22,313 )

Accumulated amortization ( 37,198 ) ( 36,511 )

Net carrying amount — 687

Intangible assets with indefinite lives 79,221 79,221

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

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

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Notes to Consolidated Financial Statements

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 .

(in thousands)

Balance as of December 31, 2022

Accumulated impairment losses

Carrying value 51,694

Impairment losses during 2023

Balance as of December 31, 2023

Accumulated impairment losses

Carrying value 26,694

Impairment losses during 2024

Balance as of December 31, 2024

Accumulated impairment losses

Carrying value $ 26,694

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

For the year ended December 31, 2024, there was no impairment recorded for goodwill.

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

DOMESTIC CREDIT FACILITY

The Company has an unsecured, committed revolving credit facility (the “Credit Facility”) that provides for up to $ 500.0 million of borrowings, which is available for working capital and general corporate purposes, including a sublimit for the issuance of letters of credit.

The Credit Facility matures on July 12, 2027.

Interest, generally payable monthly, is based on the Company's option of either the secured overnight financing rate (“SOFR”) plus an applicable margin or a base rate.

Base rate is defined as the highest of the following, plus an applicable margin:

• the administrative agent's prime rate;

• the higher of the federal funds rate or overnight bank funding rate set by the Federal Reserve Bank of New York, plus 0.50 %;

• the one-month SOFR plus 1.00 %.

The applicable margin for SOFR loans will range from 1.00 % to 1.50 % based on the Company’s funded debt ratio.

The applicable margin for base rate loans will range from 0.00 % to 0.50 % based on the Company’s funded debt ratio.

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.

In addition, the agreement includes customary covenants that, among other things, limit or restrict the ability of the Company and its subsidiaries to incur additional indebtedness and liens, engage in mergers, acquisitions and dispositions, and engage in transactions with affiliates, as well as restrict the amount of certain payments, including dividends and share buybacks in the event the Company's funded debt ratio is greater than a set amount.

As of December 31, 2024, the Company was in compliance with all associated covenants.

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

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.

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

NOTE 7 — ACCRUED LIABILITIES

Accrued liabilities consisted of the following:

As of December 31,

(in thousands) 2024 2023

Sales reserves $ 96,857 $ 103,907

Accrued salaries, bonus, and other benefits

Cost of sales

997,128 274,846 292,527 116,128 1,680,629

Accrued import duties 15,151 18,741

Taxes other than income taxes payable 21,662 18,706

Product warranties 11,267 11,620

Other 44,123 46,358

Segment selling, general and administrative expenses

612,012 222,430 146,475 53,897 1,034,814

A reconciliation of product warranties is as follows:

Year Ended December 31,

(in thousands) 2024 2023 2022

Balance at the beginning of the year

Other segment items (a)

72,750 25,945 16,551 15,796 131,042

Provision for warranty claims 2,132 877 3,627

Warranty claims ( 2,215 ) ( 3,075 ) ( 3,163 )

Other ( 270 ) 8 ( 299 )

Balance at the end of the year

Segment operating income

297,143 87,928 121,367 44,428 550,866

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 54

Notes to Consolidated Financial Statements

NOTE 8 — LEASES

The components of lease cost consisted of the following:

Reconciliation to income before income tax:

Unallocated corporate expenses

Operating income 207,039

Interest income, net

Other non-operating income, net

Income before income tax $ 229,624

(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, 2024

(in thousands)

Operating lease cost $ 93,653 $ 83,866 $ 76,650

Variable lease cost 67,459 65,376 63,537

Short term lease cost 10,972 10,117 5,775

LAAP EMEA Canada Total

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

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

Year Ended December 31,

(in thousands) 2024 2023 2022

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

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

Cost of sales

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

(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 %

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

(in thousands)

Segment selling, general and administrative expenses

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

Thereafter 133,955

Total operating lease payments

imputed interest ( 74,940 )

Total operating lease liabilities

current operating lease liabilities

Non-current operating lease liabilities

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

INCOME TAX PROVISION

Consolidated income from operations before income taxes consisted of the following:

Year Ended December 31,

(in thousands)

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

Foreign operations 215,067 200,614 153,715

Reconciliation to income before income tax:

Unallocated corporate expenses

Operating income

Interest income, net

Other non-operating expense, net

Income before income tax

The components of the provision for income taxes consisted of the following:

Year Ended December 31, 2023

1 unchanged sentence

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

Federal $ 32,073 $ 39,939 $ 52,503

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

40,651 33,109 25,615

Cost of sales

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

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

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

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

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

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

Year Ended December 31,

(percent of income before tax) 2024 2023 2022

Provision for federal income taxes at the statutory rate 21.0 % 21.0 % 21.0 %

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

income taxed at different rates

Segment operating income

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

Valuation allowance

Adjustment to deferred taxes — — 0.1

Global intangible low-taxed income

Research credits ( 0.7 ) ( 0.7 ) ( 0.4 )

Withholding taxes 0.4 1.0 0.2

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 %

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 | 2025 FORM 10-K | 51

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,

The following table presents segment depreciation and amortization expense information:

Year Ended December 31,

(in thousands)

Deferred tax assets:

Accruals and allowances $ 37,436 $ 29,585

Lease liabilities

2025 2024 2023

Capitalized inventory costs 17,895 20,589

Sales reserves 16,648 16,559

Share-based compensation

Net operating loss carryforwards 2,550 1,720

Depreciation and amortization 10,473 20,335

Capitalized research and development expenditures 23,392 17,008

Tax credits 153 860

Other 3,153 2,471

Gross deferred tax assets 236,461 221,844

Valuation allowance ( 10,670 ) ( 7,141 )

Net deferred tax assets 225,791 214,703

Deferred tax liabilities:

Depreciation and amortization ( 3,149 ) ( 879 )

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

Lease ROU assets

Depreciation and amortization expense:

$ 26,274 $ 22,907 $ 21,429

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

Foreign currency ( 7,209 ) ( 2,588 )

Gross deferred tax liabilities ( 121,898 ) ( 109,195 )

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

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

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

The Company had foreign net operating loss carryforwards of $ 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, 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 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.

The Company has recorded a deferred tax liability for these, except in the jurisdictions where the Company intends to indefinitely reinvest the earnings.

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 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 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.

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

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

Year Ended December 31,

LAAP 6,803 5,885 5,440

EMEA 4,673 4,040 3,545

Canada 3,100 2,913 2,616

Unallocated corporate expense 15,985 20,199 25,033

$ 56,835 $ 55,944 $ 58,063

The following table presents segment asset information, as well as long-lived asset information by geographic area:

As of December 31,

(in thousands)

December 31, 2025 December 31, 2024

$ 416,041 $ 450,014

Balance at beginning of year $ 10,318 $ 10,177 $ 13,855

Increases related to prior year tax positions 264 578 234

Decreases related to prior year tax positions ( 307 ) — ( 1,646 )

Increases related to current year tax positions 1,247 1,376 1,355

Expiration of statute of limitations ( 1,458 ) ( 1,813 ) ( 3,621 )

Balance at end of year $ 10,064 $ 10,318 $ 10,177

Due to the potential for resolution of income tax audits currently in progress, and the expiration of various statutes of limitation, it is reasonably possible that the unrecognized tax benefits balance may change within the twelve months following December 31, 2024 by a range of zero to $ 1.7 million.

Open tax years, including those previously mentioned, contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, timing, or inclusion of revenue and expenses or the sustainability of income tax credits for a given examination cycle.

Unrecognized tax benefits of $ 8.8 million, $ 9.2 million and $ 9.2 million would affect the effective tax rate if recognized as of December 31, 2024, 2023 and 2022, respectively.

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

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.

NOTE 10 — RETIREMENT SAVINGS PLANS

401(K) PROFIT-SHARING PLAN

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.

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

Costs recognized for Company contributions to the pla n were $ 14.9 million , $ 15.6 million and $ 13.3 million for the years ended December 31, 2024, 2023 and 2022, respectively.

DEFERRED COMPENSATION PLAN

The Company sponsors a nonqualified retirement savings plan for certain senior management employees whose contributions to the tax qualified 401(k) plan would be limited by provisions of the Internal Revenue Code.

This plan allows participants to defer receipt of a portion of their salary and incentive compensation and to receive matching contributions for a portion of the deferred amounts.

Costs recognized for Company matching contributions to the plan were immaterial for the years ended December 31, 2024, 2023 and 2022.

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 of the participant.

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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.

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

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

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

As of December 31, 2024 and 2023, the long-term portion of the liability to participants under this plan was $ 30.5 million and $ 26.6 million, respectively, and was recorded in Other long-term liabilities .

As of December 31, 2024 and 2023, the current portion of the participant liability was $ 2.1 million and $ 1.2 million, respectively, and was recorded in Accrued liabilities .

As of December 31, 2024 and 2023, the fair value of the long-term portion of the investments related to this plan was $ 30.5 million and $ 26.6 million, respectively, and was recorded in Other non-current assets .

As of December 31, 2024 and 2023, the current portion of the investments related to this plan was $ 2.1 million and $ 1.2 million, respectively, and was recorded in Short-term investments .

NOTE 11 — COMMITMENTS AND CONTINGENCIES

The Company is involved in litigation and various legal matters arising in the normal course of business, including matters related to employment, retail, intellectual property, contractual agreements, and various regulatory compliance activities.

Management has considered facts related to legal and regulatory matters and opinions of counsel handling these matters, and does not believe the ultimate resolution of these proceedings will have a material adverse effect on the Company's financial position, results of operations or cash flows.

INDEMNITIES AND GUARANTEES

During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions.

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

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

The 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.

The Company has not recorded any liability for these indemnities, commitments and guarantees in the accompanying Consolidated Balance Sheets.

NOTE 12 — SHAREHOLDERS' EQUITY

Since the inception of the Company's stock repurchase plan in 2004 through December 31, 2024, the Company's Board of Directors has authorized the repurchase of $ 2.6 billion of the Company's common stock, excluding excise tax.

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

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

Under this program as of December 31, 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

LAAP 118,633 108,818

EMEA 106,508 79,710

Canada 48,274 51,973

Total segment assets

689,456 690,515

All other assets

2,239,037 2,284,750

$ 2,928,493 $ 2,975,265

Long-lived assets, net:

$ 536,022 $ 545,401

All other countries 178,920 150,995

$ 714,942 $ 696,396

CONCENTRATIONS

No single customer accounted for 10% or more of Net sales for the years ended December 31, 2025, 2024 and 2023.

NOTE 5 — SHARE-BASED COMPENSATION

4 unchanged sentences

As of December 31, 2025, 2,046,846 shares were available for future grants under the 2020 Plan.

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Notes to Consolidated Financial Statements

The Company's Stock Incentive Plan allows for grants of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, and other share-based or cash-based awards to officers, executives, key employees and nonemployee members of the Company’s Board of Directors.

8 unchanged sentences

Pre-tax share-based compensation expense 24,651 25,167 23,051

25,167 23,051 21,021

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

Income tax benefits recognized ( 5,898 ) ( 5,774 ) ( 5,365 )

Total share-based compensation expense, net of tax $ 18,753 $ 19,393 $ 17,686

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

The Company realized a tax benefit for the deduction from share-based award transactions of $ 4.6 million, $ 3.7 million and $ 3.9 million for the years ended December 31, 2025, 2024 and 2023, respectively.

10 unchanged sentences

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,

5 unchanged sentences

Weighted average grant date fair value per stock option granted $ 19.23 $ 20.86 $ 22.61

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 53

Notes to Consolidated Financial Statements

The following table summarizes stock option activity under the Plan:

Options Weighted

Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (1)

Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (1)

(in thousands)

18 unchanged sentences

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 .

4 unchanged sentences

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

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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:

4 unchanged sentences

Weighted average grant date fair value per time-based RSU granted $ 78.89 $ 78.26 $ 82.37

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Notes to Consolidated Financial Statements

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

8 unchanged sentences

635,965 $ 79.19

(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.

(1) The number of awards vested includes 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, 2025, the Company withheld 72,821 shares to satisfy $ 5.9 million of employees' tax obligations for time-based RSUs.

Time-based RSU compensation expense, net of estimated forfeitures, was $ 18.5 million, $ 17.2 million and $ 14.3 million for the years ended December 31, 2025, 2024 and 2023, respectively.

3 unchanged sentences

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.

Performance-based restricted stock units (“performance-based RSUs”) are granted at no cost to certain members of the Company's executive team 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.

5 unchanged sentences

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

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Notes to Consolidated Financial Statements

Year Ended December 31,

5 unchanged sentences

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

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Notes to Consolidated Financial Statements

Number of Shares (1)

4 unchanged sentences

Granted 22,860 81.05

( 5,120 ) 85.64

Forfeited ( 15,168 ) 81.55

2 unchanged sentences

(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.

(2) The number of awards vested includes 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, 2025, the Company withheld 1,722 shares to satisfy $0.1 million of employees' tax obligations for performance-based RSUs.

Performance-based RSU compensation expense, net of estimated forfeitures, was $( 0.1 ) million, $ 0.6 million and $ 0.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.

1 unchanged sentence

These unrecognized costs as of December 31, 2025 are expected to be recognized over a weighted average period of 1.24 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.

The total fair value of shares vested for performance-based RSUs was $ 0.4 million, $ 0 million and $ 0.6 million during the years ended December 31, 2025, 2024 and 2023, 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 restricted stock units (“market-based RSUs”) are granted at no cost to certain members of the Company's executive team 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 .

10 unchanged sentences

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

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Notes to Consolidated Financial Statements

Number of Shares (1)

2 unchanged sentences

Outstanding as of December 31, 2024

26,273 $ 89.25

Granted 22,860 117.40

3 unchanged sentences

(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.

(2) The number of awards vested includes 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, 2025, 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.

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Notes to Consolidated Financial Statements

Market-based RSU compensation expense, net of estimated forfeitures, was $ 1.1 million, $ 0.6 million and $ 0 million for the years ended December 31, 2025, 2024 and 2023, respectively.

As of December 31, 2025, unrecognized costs related to market-based RSUs was net of estimated forfeitures and totaled $ 2.1 million, before any related tax benefit.

These unrecognized costs as of December 31, 2025 are expected to be recognized over a weighted average period of 1.5 years.

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.

No shares vested for market-based RSUs during the years ended December 31, 2025, 2024 and 2023.

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.

Market-based long-term cash awards are granted to the Company's Chief Executive Officer and are subject to market and time-based vesting conditions.

In 2025, the Company issued a long-term cash award to its Chief Executive Officer with a target value of $ 1.3 million that includes both a market and time-based vesting condition, resulting in total market-based long-term cash awards outstanding at target value of $ 2.5 million as of December 31, 2025.

Market-based long-term cash awards are liability-classified and 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 amount of the long-term cash awards 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 market-based long-term cash awards is determined using a Monte Carlo model that simulates a distribution of stock prices for the Company and comparator companies throughout the performance period.

Market-based long-term cash award compensation expense was $ 0.4 million, $ 0.4 million, and $ 0 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Fair value of all outstanding market-based long-term cash awards as of December 31, 2025 was $ 1.7 million and the Company had unrecognized compensation costs of $ 0.9 million.

These unrecognized costs as of December 31, 2025 are expected to be recognized over a weighted average period of 1.5 years.

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Notes to Consolidated Financial Statements

NOTE 6 — EARNINGS PER SHARE

16 unchanged sentences

2,439 1,932 1,996

(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.

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Notes to Consolidated Financial Statements

NOTE 15 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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

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

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

adjustments Total

Balance as of December 31, 2021

$ — $ 9,914 $ ( 14,290 ) $ ( 4,376 )

Other comprehensive income (loss) before reclassifications ( 451 ) 20,724 ( 38,137 ) ( 17,864 )

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

NOTE 7 — PROPERTY, PLANT AND EQUIPMENT, NET

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

As of December 31,

(in thousands)

Land and improvements $ 33,021 $ 32,862

Buildings and improvements 235,969 226,336

Machinery, software and equipment 420,565 405,909

Furniture and fixtures 137,640 127,366

Leasehold improvements 202,585 184,800

Construction in progress 13,375 15,420

1,043,155 992,693

Net other comprehensive income (loss) — 11,876 ( 38,137 ) ( 26,261 )

Balance as of December 31, 2022

Less accumulated depreciation ( 764,024 ) ( 709,785 )

$ 279,131 $ 282,908

Other comprehensive income (loss) before reclassifications 145 ( 849 ) 2,757 2,053

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

Depreciation expense for Property, plant and equipment, net was $ 56.8 million, $ 55.3 million, and $ 56.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Impairment charges recorded for PP&E related to certain underperforming retail locations were $ 10.1 million for the year ended December 31, 2025 and were not material for the years ended December 31, 2024 and 2023.

NOTE 8 — LEASES

The components of lease cost consisted of the following:

Year Ended December 31,

(in thousands) 2025 2024 2023

Operating lease cost $ 108,432 $ 93,653 $ 83,866

Variable lease cost 68,242 67,459 65,376

Short term lease cost 10,179 10,972 10,117

$ 186,853 $ 172,084 $ 159,359

Net other comprehensive income (loss) 145 ( 18,101 ) 2,757 ( 15,199 )

Balance as of December 31, 2023

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

Year Ended December 31,

(in thousands) 2025 2024 2023

Cash paid for amounts included in the measurement of operating lease liabilities $ 108,895 $ 98,620 $ 85,793

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

$ 110,028 $ 128,605 $ 83,393

Other comprehensive income (loss) before reclassifications 84 31,252 ( 37,030 ) ( 5,694 )

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

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

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 58

Notes to Consolidated Financial Statements

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

As of December 31,

Weighted average remaining lease term 6.31 years 5.79 years

Weighted average discount rate 5.14 % 4.89 %

The following table presents the future maturities of operating lease liabilities as of December 31, 2025:

(in thousands)

2026 $ 109,510

Net other comprehensive income (loss) ( 61 ) 19,705 ( 37,030 ) ( 17,386 )

Thereafter 152,395

Total operating lease payments

imputed interest ( 85,307 )

Total operating lease liabilities

current operating lease liabilities

Non-current operating lease liabilities

As of December 31, 2025, the Company has additional commitments for operating leases that have not yet commenced of $ 12.0 million.

These leases will commence in 2026 with lease terms of approximately one to ten years .

NOTE 9 — INTANGIBLE ASSETS, NET AND GOODWILL

During the third quarter of 2025, declines in forecasted revenues and gross margins, primarily as a result of impacts from incremental tariffs and a difficult macroeconomic environment, led to triggering events for the prAna and Mountain Hardwear trade names and goodwill reporting units.

As a result, the Company performed interim quantitative impairment tests where the Company compared the estimated fair values of the prAna and Mountain Hardwear trade names and goodwill reporting units to their carrying values.

The fair values of the prAna and Mountain Hardwear trade names were estimated using a relief-from-royalty method under the income approach.

The key assumptions used in the relief-from-royalty method were the Company's estimates of projected revenues, royalty rate, and discount rate, taking into consideration market and industry conditions.

In the Company's interim quantitative impairment test of the prAna trade name, the fair value of the prAna trade name was less than its carrying value of $ 51.8 million and, therefore, an impairment charge of $ 8.0 million was recorded .

In the Company's interim quantitative impairment test of the Mountain Hardwear trade name, the fair value of the Mountain Hardwear trade name exceeded its carrying value and, therefore, no impairment was recorded.

The Company did not identify additional triggering events or record additional impairment charges for trade names as part of its annual impairment test.

There were no triggering events or impairment charges recorded for trade names during the twelve months ended December 31, 2024.

The fair values of the prAna and Mountain Hardwear goodwill reporting units were estimated using a combination of discounted cash flow and market-based valuation methods.

The key assumptions used in the discounted cash flow method were cash flow projections and the discount rate.

Cash flow projections were developed, in part, from the Company's annual and long-range planning processes.

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

The key assumptions used in the market-based valuation method were market multiples for guideline public companies.

In the Company's interim quantitative impairment test of the prAna reporting unit, the fair value of the prAna reporting unit was less than its carrying value and, therefore, an impairment charge of $ 8.8 million was recorded.

In the Company's interim quantitative impairment test of the Mountain Hardwear reporting unit, the fair value of the Mountain Hardwear reporting unit was less than its carrying value and, therefore, an impairment charge of $ 12.2 million was recorded.

The Company did not identify additional triggering events or record additional impairment charges for goodwill as

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 59

Notes to Consolidated Financial Statements

part of its annual impairment test.

There were no triggering events or impairment charges recorded for goodwill during the twelve months ended December 31, 2024.

INTANGIBLE ASSETS, NET

Intangible assets, net consisted of the following:

As of December 31,

(in thousands)

Intangible assets with definite lives:

Patents and purchased technology $ 14,198 $ 14,198

Customer relationships 23,000 23,000

Gross carrying amount 37,198 37,198

Accumulated amortization:

Patents and purchased technology ( 14,198 ) ( 14,198 )

Customer relationships ( 23,000 ) ( 23,000 )

Accumulated amortization ( 37,198 ) ( 37,198 )

Net carrying amount — —

Intangible assets with indefinite lives 71,221 79,221

Intangible assets, net $ 71,221 $ 79,221

I ntangible assets subject to amortization were fully amortized as of December 31, 2025 and 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 year ended December 31, 2023.

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

The following table sets forth the changes in Goodwill .

(in thousands)

Balance as of December 31, 2023

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

(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.

NOTE 16 — SEGMENT INFORMATION

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 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 information technology, certain supply chain functions, finance, human resources and legal, as well as executive compensation, unallocated benefit program expense, and other miscellaneous costs.

Accumulated impairment losses

Carrying value 26,694

Impairment losses during 2024

Balance as of December 31, 2024

Accumulated impairment losses

Carrying value 26,694

Impairment losses during 2025

Balance as of December 31, 2025

Accumulated impairment losses

Carrying value $ 5,694

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 60

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:

NOTE 10 — INCOME TAXES

INCOME TAX PROVISION

Income before income tax consisted of the following:

Year Ended December 31,

1 unchanged sentence

2025 2024 2023

Cost of sales

$ ( 1,738 ) $ 83,120 $ 125,578

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

Reconciliation to income before income tax:

Unallocated corporate expenses

Operating income 270,741

Interest income, net

Other non-operating expense ( 257 )

Foreign operations 231,362 215,067 200,614

Income before income tax $ 229,624 $ 298,187 $ 326,192

Components of the provision for income taxes consisted of the following:

Year Ended December 31,

1 unchanged sentence

2025 2024 2023

Cost of sales

Federal $ 7,757 $ 32,073 $ 39,939

State and local 4,588 8,394 6,879

39,633 40,651 33,109

Segment selling, general and administrative expenses

51,978 81,118 79,927

Other segment items (a)

Federal ( 3,732 ) ( 11,925 ) ( 5,492 )

State and local ( 2,986 ) ( 1,258 ) ( 1,589 )

7,140 6,979 1,946

Segment operating income

422 ( 6,204 ) ( 5,135 )

Reconciliation to income before income tax:

Unallocated corporate expenses

Operating income

Interest income, net

Other non-operating income

Income before income tax

Income tax expense $ 52,400 $ 74,914 $ 74,792

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 61

Notes to Consolidated Financial Statements

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

Year Ended December 31,

(in thousands)

2025 2024 2023

Cost of sales

(in thousands, except for percentages of income before tax) Amount % Amount % Amount %

federal statutory tax rate $ 48,221 21.0 % $ 62,619 21.0 % $ 68,500 21.0 %

State and local income taxes, net of federal income tax effect 1,717 0.7 5,802 1.9 5,567 1.7

Foreign tax effects:

Non-federal taxes 3,044 1.3 3,811 1.3 4,198 1.3

Other 948 0.4 689 0.2 859 0.3

7,181 3.1 2,430 0.8 4,372 1.3

Segment selling, general and administrative expenses

Changes in valuation allowance 480 0.2 6,355 2.1 — —

Other 95 — 244 0.1 956 0.3

Statutory tax rate difference between Switzerland and the U.S.

( 20,208 ) ( 8.8 ) ( 17,489 ) ( 5.9 ) ( 15,113 ) ( 4.6 )

Other segment items (a)

Non-federal taxes 10,935 4.8 9,536 3.2 7,137 2.2

Changes in valuation allowance

( 141 ) ( 0.1 ) ( 538 ) ( 0.2 ) 7,001 2.1

Segment operating income

Intangible assets — — — — ( 9,458 ) ( 2.9 )

Other 27 — ( 745 ) ( 0.2 ) ( 2,059 ) ( 0.6 )

Other foreign jurisdictions 490 0.3 1,062 0.4 1,542 0.5

Enactment of new tax laws:

Section 987 regulations

( 2,860 ) ( 1.2 ) — — — —

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,

Effect of cross-border tax laws:

509 0.3 2,981 1.0 4,118 1.3

Research and developments tax credits ( 622 ) ( 0.3 ) ( 2,223 ) ( 0.7 ) ( 2,373 ) ( 0.7 )

Foreign tax credits ( 3,640 ) ( 1.6 ) ( 1,676 ) ( 0.6 ) ( 1,674 ) ( 0.5 )

Nontaxable or nondeductible items:

Impairment of goodwill

2,553 1.1 — — — —

1,571 0.7 1,733 0.6 1,141 0.3

Changes in unrecognized tax benefits 1,598 0.7 323 0.1 790 0.2

Other adjustments

502 0.2 — — ( 712 ) ( 0.3 )

Effective tax rate $ 52,400 22.8 % $ 74,914 25.1 % $ 74,792 22.9 %

(a) State taxes in Oregon, California, Texas, Florida, New Jersey, and Georgia in the current period made up the majority (greater than 50 percent) of the tax effect in this category.

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 62

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)

Deferred tax assets:

Accruals and allowances $ 41,251 $ 37,436

Operating lease liabilities

120,198 114,079

Depreciation and amortization expense:

Capitalized inventory costs 18,087 17,895

Sales reserves 15,083 16,648

Share-based compensation

11,529 10,682

LAAP 5,885 5,440 4,984

EMEA 4,040 3,545 3,066

Net operating loss carryforwards 3,156 2,550

Depreciation and amortization 6,398 10,473

Capitalized research and development expenditures 18,087 23,392

Tax credits 3,241 153

Other 1,399 3,153

Gross deferred tax assets 238,429 236,461

Valuation allowance ( 11,182 ) ( 10,670 )

Net deferred tax assets 227,247 225,791

Deferred tax liabilities:

Depreciation and amortization ( 1,540 ) ( 3,149 )

Prepaid expenses ( 3,044 ) ( 3,216 )

Operating lease ROU assets

( 104,927 ) ( 100,475 )

Deferred tax liability associated with future repatriations ( 7,953 ) ( 7,849 )

Foreign currency ( 2,689 ) ( 7,209 )

Gross deferred tax liabilities ( 120,153 ) ( 121,898 )

Total net deferred taxes $ 107,094 $ 103,893

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

The Company has foreign net operating loss carryforwards of $ 15.0 million as of December 31, 2025, of which $ 14.5 million have a 15-year carryforward period, $ 0.2 million have a 5-year carryforward period, and $ 0.3 million have an unlimited carryforward period.

As of December 31, 2025 and 2024, the net operating losses result in deferred tax assets of $ 3.2 million and $ 2.6 million, respectively, and were subject to a valuation allowance of $ 3.0 million and $ 2.5 million, respectively.

The Company has other foreign deferred tax assets which do not relate to net operating losses of $ 10.6 million and $ 10.7 million for the tax years ending December 31, 2025 and 2024.

These foreign deferred tax assets which do not relate to net operating losses were subject to valuation allowances of $ 8.2 million and $ 8.2 million, respectively.

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 63

Notes to Consolidated Financial Statements

Net cash paid (refunds received) for income taxes consisted of the following:

Year Ended December 31,

(in thousands)

2025 2024 2023

Federal $ 36,065 $ 25,606 $ 43,000

Aggregated state and local jurisdictions 1,940 4,875 5,855

Disaggregated state and local jurisdictions:

California 654 1,870 1,700

Oregon ( 303 ) 1,165 921

Illinois — — 845

New Jersey 375 475 750

New York 428 492 929

Aggregated foreign jurisdictions 4,497 7,978 6,432

Disaggregated foreign jurisdictions:

Canada 10,931 12,313 14,447

Unallocated corporate expense 20,199 25,033 23,813

China 16,567 11,289 9,461

Switzerland 13,973 10,041 6,167

Net cash paid for income taxes

$ 86,394 $ 76,104 $ 90,507

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.

As of December 31, 2025, the Company had accumulated undistributed earnings generated by the Company's foreign subsidiaries of $ 268.0 million.

These earnings have been subject to U.S.

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

The Company has recorded a deferred tax liability for these, except in the jurisdiction where the Company intends to indefinitely reinvest the earnings.

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 U.S.

federal jurisdiction and various state and foreign jurisdictions.

The Company is subject to examination by taxing authorities throughout the 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.

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.

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

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 64

Notes to Consolidated Financial Statements

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

Year Ended December 31,

(in thousands)

2025 2024 2023

Balance at beginning of year $ 10,064 $ 10,318 $ 10,177

Increases related to prior year tax positions 728 264 578

Decreases related to prior year tax positions ( 523 ) ( 307 ) —

Increases related to current year tax positions 2,169 1,247 1,376

Expiration of statute of limitations ( 1,402 ) ( 1,458 ) ( 1,813 )

Balance at end of year $ 11,036 $ 10,064 $ 10,318

Unrecognized tax benefits of $ 9.6 million, $ 8.8 million and $ 9.2 million would affect the effective tax rate if recognized as of December 31, 2025, 2024 and 2023, respectively.

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

The Company recognized a net increase of interest and penalties of $ 0.7 million, $ 0.8 million and $ 2.7 million in 2025, 2024, and 2023 respectively, all of which related to uncertain tax positions.

The Company had $ 6.0 million and $ 5.3 million of accrued interest and penalties related to uncertain tax positions as of December 31, 2025 and 2024, respectively.

NOTE 11 — SHORT-TERM BORROWINGS AND CREDIT LINES

DOMESTIC CREDIT FACILITY

The Credit Facility matures on July 12, 2027.

Interest, generally payable monthly, is based on the Company's option of either the secured overnight financing rate (“SOFR”) plus an applicable margin or a base rate.

Base rate is defined as the highest of the following, plus an applicable margin:

• the administrative agent's prime rate;

• the higher of the federal funds rate or overnight bank funding rate set by the Federal Reserve Bank of New York, plus 0.50 %;

• the one-month SOFR plus 1.00 %.

The applicable margin for SOFR loans will range from 1.00 % to 1.50 % based on the Company’s funded debt ratio.

The applicable margin for base rate loans will range from 0.00 % to 0.50 % based on the Company’s funded debt ratio.

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.

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

As of December 31, 2025, the Company was in compliance with all associated covenants.

As of December 31, 2025 and 2024, there was no balance outstanding.

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 € 5.0 million (approximately US$ 5.9 million) as of December 31, 2025, with borrowings to accrue interest at a base rate plus 75 basis points.

As of December 31, 2025 and 2024 there was no balance outstanding.

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 65

Notes to Consolidated Financial Statements

NOTE 12 — SUPPLY CHAIN FINANCING

The Company offers 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.

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) 2025 2024

Confirmed obligations outstanding at the beginning of the year

Invoices confirmed during the year

532,196 340,143

Confirmed invoices paid during the year

( 541,575 ) ( 258,855 )

Confirmed obligations outstanding at the end of the year

$ 71,909 $ 81,288

NOTE 13 — ACCRUED LIABILITIES

Accrued liabilities consisted of the following:

As of December 31,

(in thousands) 2025 2024

Sales reserves $ 98,694 $ 96,857

Accrued salaries, bonus, and other benefits

83,101 84,270

LAAP 108,818 106,785

EMEA 79,710 89,303

Canada 51,973 62,340

Total segment assets

Accrued import duties 1,409 15,151

Taxes other than income taxes payable 24,258 21,662

Product warranties 10,510 11,267

Other 60,449 44,123

$ 278,421 $ 273,330

All other assets

A reconciliation of product warranties is as follows:

Year Ended December 31,

(in thousands) 2025 2024 2023

Balance at the beginning of the year

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

Provision for warranty claims 1,408 2,132 877

Warranty claims ( 2,367 ) ( 2,215 ) ( 3,075 )

Other 202 ( 270 ) 8

Balance at the end of the year

$ 10,510 $ 11,267 $ 11,620

Long-lived assets, net:

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 66

Notes to Consolidated Financial Statements

NOTE 14 — RETIREMENT SAVINGS PLANS

401(K) PROFIT-SHARING PLAN

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.

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

Costs recognized for Company contributions to the pla n were $ 15.1 million , $ 14.9 million and $ 15.6 million for the years ended December 31, 2025, 2024 and 2023, respectively.

DEFERRED COMPENSATION PLAN

This plan allows participants to defer receipt of a portion of their salary and incentive compensation and to receive matching contributions for a portion of the deferred amounts.

Costs recognized for Company matching contributions to the plan were immaterial for the years ended December 31, 2025, 2024 and 2023.

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

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.

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

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

As of December 31, 2025 and 2024, the long-term portion of the liability to participants under this plan was $ 35.6 million and $ 30.5 million, respectively, and was recorded in Other long-term liabilities .

As of December 31, 2025 and 2024, the current portion of the participant liability was $ 2.3 million and $ 2.1 million, respectively, and was recorded in Accrued liabilities .

As of December 31, 2025 and 2024, the fair value of the long-term portion of the investments related to this plan was $ 35.6 million and $ 30.5 million, respectively, and was recorded in Other non-current assets .

As of December 31, 2025 and 2024, the current portion of the investments related to this plan was $ 2.3 million and $ 2.1 million, respectively, and was recorded in Short-term investments .

NOTE 15 — COMMITMENTS AND CONTINGENCIES

INDEMNITIES AND GUARANTEES

During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions.

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) director and executive indemnification agreements, and (v) indemnities involving the accuracy of representations and warranties in certain contracts.

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

The 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.

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 67

Notes to Consolidated Financial Statements

NOTE 16 — SHAREHOLDERS' EQUITY

Since the inception of the Company's stock repurchase plan in 2004 through December 31, 2025, the Company's Board of Directors has authorized the repurchase of $ 2.6 billion of the Company's common stock, excluding excise tax.

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

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

Under this program as of December 31, 2025, the Company had repurchased 41.0 million shares at an aggregate purchase price of $ 2,173.5 million and had $ 426.5 million remaining available under the share repurchase program, excluding excise tax.

During the years ended December 31, 2025 and 2024, the Company repurchased an aggregate of $ 201.1 million and $ 317.8 million, respectively, of common stock under this program, excluding excise tax.

NOTE 17 — ACCUMULATED OTHER COMPREHENSIVE LOSS

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

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

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

adjustments Total

Balance as of December 31, 2022

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

All other countries 150,995 122,878

Other comprehensive income (loss) before reclassifications

145 ( 849 ) 2,757 2,053

CONCENTRATIONS

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

Amounts reclassified from accumulated other comprehensive loss (1)

— ( 17,252 ) — ( 17,252 )

Other comprehensive income (loss)

145 ( 18,101 ) 2,757 ( 15,199 )

Balance as of December 31, 2023

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

Other comprehensive income (loss) before reclassifications

84 31,252 ( 37,030 ) ( 5,694 )

Amounts reclassified from accumulated other comprehensive loss (1)

( 145 ) ( 11,547 ) — ( 11,692 )

Other comprehensive income (loss)

( 61 ) 19,705 ( 37,030 ) ( 17,386 )

Balance as of December 31, 2024

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

Other comprehensive income (loss) before reclassifications

— ( 20,081 ) 25,588 5,507

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

11 ( 7,949 ) — ( 7,938 )

Other comprehensive income (loss)

11 ( 28,030 ) 25,588 ( 2,431 )

Balance as of December 31, 2025

$ 95 $ ( 4,636 ) $ ( 61,112 ) $ ( 65,653 )

(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 18 for further information regarding reclassifications.

NOTE 18 — FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

3 unchanged sentences

The Company does not engage in speculative trading in any financial market.

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 68

Notes to Consolidated Financial Statements

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

6 unchanged sentences

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

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 .

These costs or benefits are included in Accumulated other comprehensive 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 .

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 U.S.

2 unchanged sentences

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

Notes to Consolidated Financial Statements

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

5 unchanged sentences

Currency forward contracts $ 261,805 $ 263,103

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.

As of December 31, 2025, $ 0.9 million of deferred net loss on both outstanding and matured derivatives recorded in Accumulated other comprehensive 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.

5 unchanged sentences

The Company has not pledged assets or posted collateral as a requirement for entering into or maintaining derivative positions.

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 69

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

13 unchanged sentences

Currency forward contracts Accrued liabilities $ 676 $ 872

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 70

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

3 unchanged sentences

Derivative instruments designated as cash flow hedges:

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

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

— $ ( 20,081 ) $ 31,252 $ ( 849 )

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

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

Net sales $ 332 $ ( 1,655 ) $ 60

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

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

Cost of sales $ 9,779 $ 17,688 $ 23,307

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

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

Other non-operating income (expense), net

1 unchanged sentence

Derivative instruments not designated as cash flow hedges:

Gain (loss) recognized in income

Gain (loss) recognized in net income

Other non-operating income (expense), net

3 unchanged sentences

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

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 70

Notes to Consolidated Financial Statements

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

5 unchanged sentences

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

COLUMBIA SPORTSWEAR COMPANY | 2024 FORM 10-K | 71

Notes to Consolidated Financial Statements

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

5 unchanged sentences

— 50,050 — 50,050

Commercial paper

— 24,856 — 24,856

Time deposits (1)

4 unchanged sentences

— 321,766 — 321,766

Commercial paper

— 24,676 — 24,676

Other short-term investments:

17 unchanged sentences

Notes to Consolidated Financial Statements

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

As of December 31, 2024

9 unchanged sentences

government treasury bills — 281,499 — 281,499

— 412,987 — 412,987

Other short-term investments:

16 unchanged sentences

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, 2024 and 2023.

Refer to Note 2, Note 7 and Note 9 for further information regarding the impairment charges recorded for the year ended December 31, 2025 and related fair value measurements.

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.

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

NOTE 20 — SUBSEQUENT EVENTS

On February 20, 2026, the U.S.

Supreme Court held in Learning Resources, Inc.

Trump that the International Emergency Economic Powers Act ("IEEPA") does not authorize a U.S.

President to impose tariffs during peacetime national emergencies and that the challenge to the legality of the tariffs imposed under IEEPA (the "incremental tariffs") was within the exclusive jurisdiction of the U.S.

Court of International Trade ("CIT"), thus affirming the prior decision of the CIT in V.O.S.

Selections, Inc.

United States.

As a result, on February 20, 2026, the U.S.

President issued an executive order stating that the incremental tariffs were no longer in effect and ending the collection of the incremental tariffs.

However, the U.S.

President then issued an additional executive order imposing tariffs pursuant to Section 122 of the Trade Act of 1974 for 150 days, effective on February 24, 2026.

The Company is currently assessing the impact of these actions on its operations and consolidated financial statements, including our ability to recover incremental tariffs the Company has paid.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

COLUMBIA SPORTSWEAR COMPANY | 2025 FORM 10-K | 72

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