FALSE2024Q1000105079712/3100010507972024-01-012024-03-3100010507972024-04-19xbrli:shares00010507972024-03-31iso4217:USD00010507972023-12-3100010507972023-03-3100010507972023-01-012023-03-31iso4217:USDxbrli:shares00010507972023-01-012023-12-3100010507972022-12-310001050797us-gaap:RetainedEarningsMember2024-01-012024-03-310001050797us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001050797us-gaap:CommonStockMember2024-01-012024-03-310001050797us-gaap:RetainedEarningsMember2023-01-012023-03-310001050797us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001050797us-gaap:CommonStockMember2023-01-012023-03-31colm:segment0001050797country:UScolm:ApparelAccessoriesAndEquipmentMember2024-01-012024-03-310001050797colm:LatinAmericaAndAsiaPacificMembercolm:ApparelAccessoriesAndEquipmentMember2024-01-012024-03-310001050797us-gaap:EMEAMembercolm:ApparelAccessoriesAndEquipmentMember2024-01-012024-03-310001050797country:CAcolm:ApparelAccessoriesAndEquipmentMember2024-01-012024-03-310001050797colm:ApparelAccessoriesAndEquipmentMember2024-01-012024-03-310001050797colm:FootwearMembercountry:US2024-01-012024-03-310001050797colm:FootwearMembercolm:LatinAmericaAndAsiaPacificMember2024-01-012024-03-310001050797colm:FootwearMemberus-gaap:EMEAMember2024-01-012024-03-310001050797colm:FootwearMembercountry:CA2024-01-012024-03-310001050797colm:FootwearMember2024-01-012024-03-310001050797country:US2024-01-012024-03-310001050797colm:LatinAmericaAndAsiaPacificMember2024-01-012024-03-310001050797us-gaap:EMEAMember2024-01-012024-03-310001050797country:CA2024-01-012024-03-310001050797country:USus-gaap:SalesChannelThroughIntermediaryMember2024-01-012024-03-310001050797colm:LatinAmericaAndAsiaPacificMemberus-gaap:SalesChannelThroughIntermediaryMember2024-01-012024-03-310001050797us-gaap:EMEAMemberus-gaap:SalesChannelThroughIntermediaryMember2024-01-012024-03-310001050797us-gaap:SalesChannelThroughIntermediaryMembercountry:CA2024-01-012024-03-310001050797us-gaap:SalesChannelThroughIntermediaryMember2024-01-012024-03-310001050797country:USus-gaap:SalesChannelDirectlyToConsumerMember2024-01-012024-03-310001050797colm:LatinAmericaAndAsiaPacificMemberus-gaap:SalesChannelDirectlyToConsumerMember2024-01-012024-03-310001050797us-gaap:EMEAMemberus-gaap:SalesChannelDirectlyToConsumerMember2024-01-012024-03-310001050797us-gaap:SalesChannelDirectlyToConsumerMembercountry:CA2024-01-012024-03-310001050797us-gaap:SalesChannelDirectlyToConsumerMember2024-01-012024-03-310001050797country:UScolm:ApparelAccessoriesAndEquipmentMember2023-01-012023-03-310001050797colm:LatinAmericaAndAsiaPacificMembercolm:ApparelAccessoriesAndEquipmentMember2023-01-012023-03-310001050797us-gaap:EMEAMembercolm:ApparelAccessoriesAndEquipmentMember2023-01-012023-03-310001050797country:CAcolm:ApparelAccessoriesAndEquipmentMember2023-01-012023-03-310001050797colm:ApparelAccessoriesAndEquipmentMember2023-01-012023-03-310001050797colm:FootwearMembercountry:US2023-01-012023-03-310001050797colm:FootwearMembercolm:LatinAmericaAndAsiaPacificMember2023-01-012023-03-310001050797colm:FootwearMemberus-gaap:EMEAMember2023-01-012023-03-310001050797colm:FootwearMembercountry:CA2023-01-012023-03-310001050797colm:FootwearMember2023-01-012023-03-310001050797country:US2023-01-012023-03-310001050797colm:LatinAmericaAndAsiaPacificMember2023-01-012023-03-310001050797us-gaap:EMEAMember2023-01-012023-03-310001050797country:CA2023-01-012023-03-310001050797country:USus-gaap:SalesChannelThroughIntermediaryMember2023-01-012023-03-310001050797colm:LatinAmericaAndAsiaPacificMemberus-gaap:SalesChannelThroughIntermediaryMember2023-01-012023-03-310001050797us-gaap:EMEAMemberus-gaap:SalesChannelThroughIntermediaryMember2023-01-012023-03-310001050797us-gaap:SalesChannelThroughIntermediaryMembercountry:CA2023-01-012023-03-310001050797us-gaap:SalesChannelThroughIntermediaryMember2023-01-012023-03-310001050797country:USus-gaap:SalesChannelDirectlyToConsumerMember2023-01-012023-03-310001050797colm:LatinAmericaAndAsiaPacificMemberus-gaap:SalesChannelDirectlyToConsumerMember2023-01-012023-03-310001050797us-gaap:EMEAMemberus-gaap:SalesChannelDirectlyToConsumerMember2023-01-012023-03-310001050797us-gaap:SalesChannelDirectlyToConsumerMembercountry:CA2023-01-012023-03-310001050797us-gaap:SalesChannelDirectlyToConsumerMember2023-01-012023-03-310001050797colm:PatentsAndPurchasedTechnologyMember2024-03-310001050797colm:PatentsAndPurchasedTechnologyMember2023-12-310001050797colm:PatentsAndPurchasedTechnologyMember2023-03-310001050797us-gaap:CustomerRelationshipsMember2024-03-310001050797us-gaap:CustomerRelationshipsMember2023-12-310001050797us-gaap:CustomerRelationshipsMember2023-03-3100010507972022-01-012022-03-310001050797us-gaap:StockOptionMember2024-01-012024-03-310001050797us-gaap:StockOptionMember2023-01-012023-03-310001050797us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001050797us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-03-310001050797us-gaap:StockOptionMember2024-03-310001050797us-gaap:RestrictedStockUnitsRSUMember2024-03-310001050797us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-12-310001050797us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2023-12-310001050797us-gaap:AccumulatedTranslationAdjustmentMember2023-12-310001050797us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-01-012024-03-310001050797us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2024-01-012024-03-310001050797us-gaap:AccumulatedTranslationAdjustmentMember2024-01-012024-03-310001050797us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-03-310001050797us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2024-03-310001050797us-gaap:AccumulatedTranslationAdjustmentMember2024-03-310001050797us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-12-310001050797us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310001050797us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2023-01-012023-03-310001050797us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-03-310001050797us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2023-03-310001050797us-gaap:AccumulatedTranslationAdjustmentMember2023-03-310001050797colm:UnitedStatesMember2024-01-012024-03-310001050797colm:UnitedStatesMember2023-01-012023-03-310001050797colm:LatinAmericaAndAsiaPacificMember2024-01-012024-03-310001050797colm:LatinAmericaAndAsiaPacificMember2023-01-012023-03-310001050797colm:EuropeMiddleEastAndAfricaMember2024-01-012024-03-310001050797colm:EuropeMiddleEastAndAfricaMember2023-01-012023-03-310001050797colm:CanadaMember2024-01-012024-03-310001050797colm:CanadaMember2023-01-012023-03-310001050797us-gaap:OperatingSegmentsMembercolm:UnitedStatesMember2024-01-012024-03-310001050797us-gaap:OperatingSegmentsMembercolm:UnitedStatesMember2023-01-012023-03-310001050797us-gaap:OperatingSegmentsMembercolm:LatinAmericaAndAsiaPacificMember2024-01-012024-03-310001050797us-gaap:OperatingSegmentsMembercolm:LatinAmericaAndAsiaPacificMember2023-01-012023-03-310001050797colm:EuropeMiddleEastAndAfricaMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310001050797colm:EuropeMiddleEastAndAfricaMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310001050797colm:CanadaMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310001050797colm:CanadaMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310001050797us-gaap:OperatingSegmentsMember2024-01-012024-03-310001050797us-gaap:OperatingSegmentsMember2023-01-012023-03-310001050797us-gaap:CorporateNonSegmentMember2024-01-012024-03-310001050797us-gaap:CorporateNonSegmentMember2023-01-012023-03-310001050797us-gaap:CreditConcentrationRiskMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:AccountsReceivableMember2024-01-012024-03-31xbrli:pure0001050797us-gaap:CreditConcentrationRiskMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:AccountsReceivableMember2023-01-012023-12-310001050797us-gaap:CreditConcentrationRiskMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:AccountsReceivableMember2023-01-012023-03-310001050797us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMember2024-03-310001050797us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMember2023-12-310001050797us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMember2023-03-310001050797us-gaap:ForeignExchangeForwardMemberus-gaap:NondesignatedMember2024-03-310001050797us-gaap:ForeignExchangeForwardMemberus-gaap:NondesignatedMember2023-12-310001050797us-gaap:ForeignExchangeForwardMemberus-gaap:NondesignatedMember2023-03-310001050797srt:MaximumMember2024-03-310001050797us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMember2024-03-310001050797us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMember2023-12-310001050797us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMember2023-03-310001050797us-gaap:CashFlowHedgingMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMember2024-03-310001050797us-gaap:CashFlowHedgingMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMember2023-12-310001050797us-gaap:CashFlowHedgingMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMember2023-03-310001050797us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMemberus-gaap:AccruedLiabilitiesMember2024-03-310001050797us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMemberus-gaap:AccruedLiabilitiesMember2023-12-310001050797us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMemberus-gaap:AccruedLiabilitiesMember2023-03-310001050797us-gaap:CashFlowHedgingMembercolm:OtherLongTermLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMember2024-03-310001050797us-gaap:CashFlowHedgingMembercolm:OtherLongTermLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMember2023-12-310001050797us-gaap:CashFlowHedgingMembercolm:OtherLongTermLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMember2023-03-310001050797us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:ForwardContractsMemberus-gaap:NondesignatedMember2024-03-310001050797us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:ForwardContractsMemberus-gaap:NondesignatedMember2023-12-310001050797us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:ForwardContractsMemberus-gaap:NondesignatedMember2023-03-310001050797us-gaap:ForwardContractsMemberus-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMember2024-03-310001050797us-gaap:ForwardContractsMemberus-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMember2023-12-310001050797us-gaap:ForwardContractsMemberus-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMember2023-03-310001050797us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-01-012024-03-310001050797us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-03-310001050797us-gaap:SalesMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-01-012024-03-310001050797us-gaap:SalesMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-03-310001050797us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CostOfSalesMember2024-01-012024-03-310001050797us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CostOfSalesMember2023-01-012023-03-310001050797us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-01-012024-03-310001050797us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-03-310001050797us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:NondesignatedMember2024-01-012024-03-310001050797us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:NondesignatedMember2023-01-012023-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:CashEquivalentsMemberus-gaap:MoneyMarketFundsMember2024-03-310001050797us-gaap:CashEquivalentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2024-03-310001050797us-gaap:CashEquivalentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2024-03-310001050797us-gaap:CashEquivalentsMemberus-gaap:MoneyMarketFundsMember2024-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:CashEquivalentsMemberus-gaap:USTreasurySecuritiesMember2024-03-310001050797us-gaap:CashEquivalentsMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-03-310001050797us-gaap:CashEquivalentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2024-03-310001050797us-gaap:CashEquivalentsMemberus-gaap:USTreasurySecuritiesMember2024-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:CashEquivalentsMemberus-gaap:BankTimeDepositsMember2024-03-310001050797us-gaap:CashEquivalentsMemberus-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel2Member2024-03-310001050797us-gaap:CashEquivalentsMemberus-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel3Member2024-03-310001050797us-gaap:CashEquivalentsMemberus-gaap:BankTimeDepositsMember2024-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2024-03-310001050797us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AvailableforsaleSecuritiesMember2024-03-310001050797us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2024-03-310001050797us-gaap:USTreasurySecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2024-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMemberus-gaap:MoneyMarketFundsMember2024-03-310001050797us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2024-03-310001050797us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2024-03-310001050797us-gaap:ShortTermInvestmentsMemberus-gaap:MoneyMarketFundsMember2024-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:MutualFundMemberus-gaap:ShortTermInvestmentsMember2024-03-310001050797us-gaap:MutualFundMemberus-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel2Member2024-03-310001050797us-gaap:MutualFundMemberus-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Member2024-03-310001050797us-gaap:MutualFundMemberus-gaap:ShortTermInvestmentsMember2024-03-310001050797us-gaap:OtherCurrentAssetsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel1Member2024-03-310001050797us-gaap:OtherCurrentAssetsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel2Member2024-03-310001050797us-gaap:OtherCurrentAssetsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel3Member2024-03-310001050797us-gaap:OtherCurrentAssetsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2024-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:OtherNoncurrentAssetsMemberus-gaap:MoneyMarketFundsMember2024-03-310001050797us-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2024-03-310001050797us-gaap:FairValueInputsLevel3Memberus-gaap:OtherNoncurrentAssetsMemberus-gaap:MoneyMarketFundsMember2024-03-310001050797us-gaap:OtherNoncurrentAssetsMemberus-gaap:MoneyMarketFundsMember2024-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:MutualFundMemberus-gaap:OtherNoncurrentAssetsMember2024-03-310001050797us-gaap:MutualFundMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Member2024-03-310001050797us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherNoncurrentAssetsMember2024-03-310001050797us-gaap:MutualFundMemberus-gaap:OtherNoncurrentAssetsMember2024-03-310001050797us-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:OtherNoncurrentAssetsMember2024-03-310001050797us-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Member2024-03-310001050797us-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherNoncurrentAssetsMember2024-03-310001050797us-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:OtherNoncurrentAssetsMember2024-03-310001050797us-gaap:FairValueInputsLevel1Member2024-03-310001050797us-gaap:FairValueInputsLevel2Member2024-03-310001050797us-gaap:FairValueInputsLevel3Member2024-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:AccruedLiabilitiesMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2024-03-310001050797us-gaap:AccruedLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2024-03-310001050797us-gaap:AccruedLiabilitiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2024-03-310001050797us-gaap:AccruedLiabilitiesMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2024-03-310001050797us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2024-03-310001050797us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2024-03-310001050797us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2024-03-310001050797us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2024-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:CashEquivalentsMemberus-gaap:MoneyMarketFundsMember2023-12-310001050797us-gaap:CashEquivalentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2023-12-310001050797us-gaap:CashEquivalentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2023-12-310001050797us-gaap:CashEquivalentsMemberus-gaap:MoneyMarketFundsMember2023-12-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:CashEquivalentsMemberus-gaap:USTreasurySecuritiesMember2023-12-310001050797us-gaap:CashEquivalentsMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001050797us-gaap:CashEquivalentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2023-12-310001050797us-gaap:CashEquivalentsMemberus-gaap:USTreasurySecuritiesMember2023-12-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:CashEquivalentsMemberus-gaap:BankTimeDepositsMember2023-12-310001050797us-gaap:CashEquivalentsMemberus-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel2Member2023-12-310001050797us-gaap:CashEquivalentsMemberus-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel3Member2023-12-310001050797us-gaap:CashEquivalentsMemberus-gaap:BankTimeDepositsMember2023-12-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2023-12-310001050797us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AvailableforsaleSecuritiesMember2023-12-310001050797us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2023-12-310001050797us-gaap:USTreasurySecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2023-12-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMemberus-gaap:MoneyMarketFundsMember2023-12-310001050797us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2023-12-310001050797us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2023-12-310001050797us-gaap:ShortTermInvestmentsMemberus-gaap:MoneyMarketFundsMember2023-12-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:MutualFundMemberus-gaap:ShortTermInvestmentsMember2023-12-310001050797us-gaap:MutualFundMemberus-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel2Member2023-12-310001050797us-gaap:MutualFundMemberus-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Member2023-12-310001050797us-gaap:MutualFundMemberus-gaap:ShortTermInvestmentsMember2023-12-310001050797us-gaap:OtherCurrentAssetsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel1Member2023-12-310001050797us-gaap:OtherCurrentAssetsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel2Member2023-12-310001050797us-gaap:OtherCurrentAssetsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel3Member2023-12-310001050797us-gaap:OtherCurrentAssetsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2023-12-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:OtherNoncurrentAssetsMemberus-gaap:MoneyMarketFundsMember2023-12-310001050797us-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2023-12-310001050797us-gaap:FairValueInputsLevel3Memberus-gaap:OtherNoncurrentAssetsMemberus-gaap:MoneyMarketFundsMember2023-12-310001050797us-gaap:OtherNoncurrentAssetsMemberus-gaap:MoneyMarketFundsMember2023-12-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:MutualFundMemberus-gaap:OtherNoncurrentAssetsMember2023-12-310001050797us-gaap:MutualFundMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Member2023-12-310001050797us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherNoncurrentAssetsMember2023-12-310001050797us-gaap:MutualFundMemberus-gaap:OtherNoncurrentAssetsMember2023-12-310001050797us-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:OtherNoncurrentAssetsMember2023-12-310001050797us-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Member2023-12-310001050797us-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherNoncurrentAssetsMember2023-12-310001050797us-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:OtherNoncurrentAssetsMember2023-12-310001050797us-gaap:FairValueInputsLevel1Member2023-12-310001050797us-gaap:FairValueInputsLevel2Member2023-12-310001050797us-gaap:FairValueInputsLevel3Member2023-12-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:AccruedLiabilitiesMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-12-310001050797us-gaap:AccruedLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-12-310001050797us-gaap:AccruedLiabilitiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-12-310001050797us-gaap:AccruedLiabilitiesMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-12-310001050797us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-12-310001050797us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-12-310001050797us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-12-310001050797us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-12-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:CashEquivalentsMemberus-gaap:MoneyMarketFundsMember2023-03-310001050797us-gaap:CashEquivalentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2023-03-310001050797us-gaap:CashEquivalentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2023-03-310001050797us-gaap:CashEquivalentsMemberus-gaap:MoneyMarketFundsMember2023-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:CashEquivalentsMemberus-gaap:USTreasurySecuritiesMember2023-03-310001050797us-gaap:CashEquivalentsMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-03-310001050797us-gaap:CashEquivalentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2023-03-310001050797us-gaap:CashEquivalentsMemberus-gaap:USTreasurySecuritiesMember2023-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2023-03-310001050797us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AvailableforsaleSecuritiesMember2023-03-310001050797us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2023-03-310001050797us-gaap:USTreasurySecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2023-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMemberus-gaap:MoneyMarketFundsMember2023-03-310001050797us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2023-03-310001050797us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2023-03-310001050797us-gaap:ShortTermInvestmentsMemberus-gaap:MoneyMarketFundsMember2023-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:MutualFundMemberus-gaap:ShortTermInvestmentsMember2023-03-310001050797us-gaap:MutualFundMemberus-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel2Member2023-03-310001050797us-gaap:MutualFundMemberus-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Member2023-03-310001050797us-gaap:MutualFundMemberus-gaap:ShortTermInvestmentsMember2023-03-310001050797us-gaap:OtherCurrentAssetsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel1Member2023-03-310001050797us-gaap:OtherCurrentAssetsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel2Member2023-03-310001050797us-gaap:OtherCurrentAssetsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel3Member2023-03-310001050797us-gaap:OtherCurrentAssetsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2023-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:OtherNoncurrentAssetsMemberus-gaap:MoneyMarketFundsMember2023-03-310001050797us-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2023-03-310001050797us-gaap:FairValueInputsLevel3Memberus-gaap:OtherNoncurrentAssetsMemberus-gaap:MoneyMarketFundsMember2023-03-310001050797us-gaap:OtherNoncurrentAssetsMemberus-gaap:MoneyMarketFundsMember2023-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:MutualFundMemberus-gaap:OtherNoncurrentAssetsMember2023-03-310001050797us-gaap:MutualFundMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Member2023-03-310001050797us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherNoncurrentAssetsMember2023-03-310001050797us-gaap:MutualFundMemberus-gaap:OtherNoncurrentAssetsMember2023-03-310001050797us-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:OtherNoncurrentAssetsMember2023-03-310001050797us-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Member2023-03-310001050797us-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherNoncurrentAssetsMember2023-03-310001050797us-gaap:DerivativeFinancialInstrumentsAssetsMemberus-gaap:OtherNoncurrentAssetsMember2023-03-310001050797us-gaap:FairValueInputsLevel1Member2023-03-310001050797us-gaap:FairValueInputsLevel2Member2023-03-310001050797us-gaap:FairValueInputsLevel3Member2023-03-310001050797us-gaap:FairValueInputsLevel1Memberus-gaap:AccruedLiabilitiesMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-03-310001050797us-gaap:AccruedLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-03-310001050797us-gaap:AccruedLiabilitiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-03-310001050797us-gaap:AccruedLiabilitiesMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-03-310001050797us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-03-310001050797us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-03-310001050797us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-03-310001050797us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2023-03-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from_______to_______
 —————————————————————
Commission file number 000-23939
 —————————————————————

COLUMBIA SPORTSWEAR COMPANY
(Exact name of registrant as specified in its charter) 
Oregon93-0498284
(State or other jurisdiction of incorporation or organization)(IRS Employer Identification Number)
14375 Northwest Science Park Drive, Portland Oregon 97229
(Address of principal executive offices and zip code)
(503) 985-4000
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockCOLMThe NASDAQ Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes☒No
☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes☒No
☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer☒Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
☐
No☒
The number of shares outstanding of the registrant's common stock on April 19, 2024 was 59,124,030.

CSC logo.jpg
TABLE OF CONTENTS
Page
PART I — FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II — OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
Item 5.Other Information
Item 6.

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q
CSC logo.jpg
SPECIAL NOTE REGARDING
FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of federal securities laws. Forward-looking statements often use words such as "will", "anticipate", "estimate", "expect", "should", "may", "believe" and other words and terms of similar meaning or reference future dates. Forward-looking statements include any statements related to our expectations regarding the effectiveness of our investments, future performance or market position, the promotional environment, storage and processing capacity, inventory levels, inventory carrying costs, shipment timing, consumer and customer spending and preferences, freight charges, scale efficiencies, inflationary pressures, foreign currency translation, the geopolitical environment, consumer and customer behaviors and expectations, the regulatory environment, the impact of seasonal trends, materiality of legal matters, risk management strategies, the performance of our profit improvement program, capital expenditures, our short and long-term cash needs and our ability to meet those needs, amortization expenses, and maturities of liabilities.

These forward-looking statements, and others we make from time to time expressed in good faith, are believed to have a reasonable basis; however, each forward-looking statement involves risks and uncertainties. Many factors may cause actual results to differ materially from projected results in forward-looking statements, including the risks described in Part II, Item 1A of this Quarterly Report on Form 10-Q. Forward-looking statements are inherently less reliable than historical information. Except as required by law, we do not undertake any duty to update forward-looking statements after the date they are made or to conform them to actual results or to changes in circumstances or to reflect changes in events, circumstances or expectations. New factors emerge from time to time and it is not possible for us to predict or assess the effects of all such factors or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | i
CSC logo.jpg
PART I — FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands)March 31,
2024		December 31,
2023		March 31,
2023
ASSETS
Current Assets:
Cash and cash equivalents$418,462 $350,319 $361,049 
Short-term investments369,270 414,185 99,511 
Accounts receivable, net of allowance of $6,260, $5,450 and $5,200, respectively
366,375 423,079 466,690 
Inventories607,373 746,288 959,234 
Prepaid expenses and other current assets84,738 80,814 100,880 
Total current assets1,846,218 2,014,685 1,987,364 
Property, plant and equipment, net of accumulated depreciation of $681,497, $671,929 and $635,256, respectively
277,947 287,281 282,921 
Operating lease right-of-use assets361,103 357,295 318,728 
Intangible assets, net79,496 79,908 81,146 
Goodwill26,694 26,694 51,694 
Deferred income taxes100,162 105,574 96,865 
Other non-current assets70,611 67,576 70,256 
Total assets$2,762,231 $2,939,013 $2,888,974 
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable$150,131 $235,927 $220,231 
Accrued liabilities216,903 272,058 271,625 
Operating lease liabilities71,550 71,086 69,452 
Income taxes payable8,722 17,556 7,377 
Total current liabilities447,306 596,627 568,685 
Non-current operating lease liabilities340,310 336,772 303,571 
Income taxes payable26,262 25,688 33,765 
Deferred income taxes— 66 146 
Other long-term liabilities38,910 41,250 35,022 
Total liabilities852,788 1,000,403 941,189 
Commitments and contingencies (Note 4)
Shareholders' Equity:
Preferred stock; 10,000 shares authorized; none issued and outstanding
— — — 
Common stock (no par value); 250,000 shares authorized; 59,473, 59,996 and 62,076 issued and outstanding, respectively
— — 1,076 
Retained earnings1,960,634 1,984,446 1,981,287 
Accumulated other comprehensive income (loss)(51,191)(45,836)(34,578)
Total shareholders' equity1,909,443 1,938,610 1,947,785 
Total liabilities and shareholders' equity$2,762,231 $2,939,013 $2,888,974 

See accompanying notes to unaudited condensed consolidated financial statements.
COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 1
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended March 31,
(in thousands, except per share amounts)20242023
Net sales$769,982 $820,593 
Cost of sales380,423 421,093 
Gross profit389,559 399,500 
Selling, general and administrative expenses349,270 347,398 
Net licensing income4,392 4,325 
Operating income44,681 56,427 
Interest income, net9,197 3,283 
Other non-operating income, net271 850 
Income before income tax54,149 60,560 
Income tax expense11,849 14,358 
Net income$42,300 $46,202 
Earnings per share:
Basic$0.71 $0.74 
Diluted$0.71 $0.74 
Weighted average shares outstanding:
Basic59,82362,133
Diluted59,99862,417

See accompanying notes to unaudited condensed consolidated financial statements.
COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 2
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended March 31,
(in thousands)20242023
Net income$42,300 $46,202 
Other comprehensive income (loss):
Change in available-for-sale securities (net of tax effect of $46)
(145)— 
Change in derivative transactions (net of tax effects of $(3,435) and $2,710, respectively)
9,777 (5,421)
Foreign currency translation adjustments (net of tax effects of $187 and $(78), respectively)
(14,987)1,480 
Other comprehensive income (loss)(5,355)(3,941)
Comprehensive income$36,945 $42,261 

See accompanying notes to unaudited condensed consolidated financial statements.
COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 3
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Three Months Ended March 31,
(in thousands)20242023
Cash flows from operating activities:
Net income$42,300 $46,202 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization15,070 13,834 
Non-cash lease expense18,603 16,749 
Provision for uncollectible accounts receivable1,033 (90)
Deferred income taxes1,232 (85)
Stock-based compensation5,644 5,808 
Other, net(4,198)287 
Changes in operating assets and liabilities:
Accounts receivable50,409 82,927 
Inventories131,721 71,503 
Prepaid expenses and other current assets(511)23,101 
Other assets(2,055)(837)
Accounts payable(77,004)(95,423)
Accrued liabilities(49,050)(59,538)
Income taxes payable(8,128)(10,941)
Operating lease assets and liabilities(18,410)(17,355)
Other liabilities117 1,860 
Net cash provided by operating activities106,773 78,002 
Cash flows from investing activities:
Purchases of short-term investments(58,974)(98,203)
Sales and maturities of short-term investments110,878 570 
Capital expenditures(14,795)(14,047)
Net cash provided by (used in) investing activities37,109 (111,680)
Cash flows from financing activities:
Proceeds from issuance of common stock related to stock-based compensation1,106 2,678 
Tax payments related to stock-based compensation(4,354)(4,297)
Repurchase of common stock(50,168)(15,293)
Cash dividends paid(17,927)(18,649)
Net cash used in financing activities(71,343)(35,561)
Net effect of exchange rate changes on cash(4,396)47 
Net increase (decrease) in cash and cash equivalents68,143 (69,192)
Cash and cash equivalents, beginning of period350,319 430,241 
Cash and cash equivalents, end of period$418,462 $361,049 
Supplemental disclosures of cash flow information:
Cash paid during the period for income taxes$29,070 $30,775 
Supplemental disclosures of non-cash investing and financing activities:
Property, plant and equipment acquired through increase in liabilities$3,492 $2,899 
See accompanying notes to unaudited condensed consolidated financial statements.
COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 4
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)

(in thousands, except per share amounts)Common StockRetained EarningsAccumulated Other Comprehensive Income (Loss)Total
Shares
Outstanding		Amount
Balance, December 31, 2023
59,996 $— $1,984,446 $(45,836)$1,938,610 
Net income— — 42,300 — 42,300 
Other comprehensive income (loss)— — — (5,355)(5,355)
Cash dividends ($0.30 per share)
— — (17,927)— (17,927)
Issuance of common stock related to stock-based compensation, net
108 (3,248)— — (3,248)
Stock-based compensation expense— 5,644 — — 5,644 
Repurchase of common stock(631)(1,983)(48,185)— (50,168)
Excise taxes related to repurchase of common stock— (413)— — (413)
Balance, March 31, 2024
59,473 $— $1,960,634 $(51,191)$1,909,443 

(in thousands, except per share amounts)Common StockRetained EarningsAccumulated Other Comprehensive Income (Loss)Total
Shares
Outstanding		Amount
Balance, December 31, 2022
62,139 $12,692 $1,953,734 $(30,637)$1,935,789 
Net income— — 46,202 — 46,202 
Other comprehensive income (loss)— — — (3,941)(3,941)
Cash dividends ($0.30 per share)
— — (18,649)— (18,649)
Issuance of common stock related to stock-based compensation, net
116 (1,619)— — (1,619)
Stock-based compensation expense— 5,808 — — 5,808 
Repurchase of common stock(179)(15,753)— — (15,753)
Excise taxes related to repurchase of common stock— (52)— — (52)
Balance, March 31, 2023
62,076 $1,076 $1,981,287 $(34,578)$1,947,785 
See accompanying notes to unaudited condensed consolidated financial statements.
COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 5
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTEPAGE
Note 1Basis of Presentation and Organization
Note 2Revenues
Note 3Intangible Assets, Net and Goodwill
Note 4Commitments and Contingencies
Note 5Shareholders' Equity
Note 6Stock-Based Compensation
Note 7Earnings Per Share
Note 8Accumulated Other Comprehensive Income (Loss)
Note 9Segment Information
Note 10Financial Instruments and Risk Management
Note 11Fair Value Measures

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 6
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg
NOTE 1 — BASIS OF PRESENTATION AND ORGANIZATION

The accompanying unaudited condensed consolidated financial statements have been prepared by the management of Columbia Sportswear Company (together with its wholly owned subsidiaries, the "Company") and, in the opinion of management, include all normal recurring material adjustments necessary to present fairly the Company's financial position as of March 31, 2024, December 31, 2023 and March 31, 2023, the results of operations for the three months ended March 31, 2024 and 2023, and cash flows for the three months ended March 31, 2024 and 2023. The December 31, 2023 financial information was derived from the Company's audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. A significant part of the Company's business is of a seasonal nature; therefore, results of operations for the three months ended March 31, 2024 are not necessarily indicative of results to be expected for other quarterly periods or for the full year.

Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The Company, however, believes that the disclosures contained in this report comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

PRINCIPLES OF CONSOLIDATION

The unaudited condensed consolidated financial statements include the accounts of the Company. All significant intercompany balances and transactions have been eliminated in consolidation.

ESTIMATES AND ASSUMPTIONS

The preparation of financial statements in conformity with 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 unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates and assumptions. The Company's significant estimates relate to sales reserves, allowance for uncollectible accounts receivable, excess, close-out and slow-moving inventory, impairment of long-lived assets, impairment of indefinite-lived intangible assets and goodwill, and income taxes.

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

None.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED

In November 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update ("ASU") No. 2023-07 (“ASU 2023-07”), Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The amendments will require public entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within the reported measure of segment profit or loss, among other disclosure requirements. ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024, with early adoption permitted, and should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the ASU to determine the impact on the Company's disclosures.

In December 2023, the FASB issued ASU No. 2023-09 (“ASU 2023-09”), Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through disaggregation of specific rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for annual periods beginning after December 15, 2024, with early adoption permitted, and may be applied prospectively or retrospectively. The Company is currently evaluating the ASU to determine the impact on the Company’s disclosures.

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 7
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg
RECLASSIFICATIONS

Certain amounts in the prior-period financial statements have been reclassified to conform to the current-period presentation. Non-cash lease expense is now presented on its own line in the Company's Condensed Consolidated Statements of Cash Flows instead of combined with depreciation and amortization. Additionally, Loss on disposal or impairment of property, plant and equipment is now included in Other, net in the Company's Condensed Consolidated Statements of Cash Flows.

NOTE 2 — REVENUES

DISAGGREGATED REVENUE

As disclosed below in Note 9, the Company has four geographic reportable segments: United States ("U.S."), Latin America and Asia Pacific ("LAAP"), Europe, Middle East and Africa ("EMEA") and Canada.

The following tables disaggregate the Company's reportable segment Net sales by product category and channel, which the Company believes provides a meaningful depiction of how the nature, timing, and uncertainty of Net sales are affected by economic factors:

Three Months Ended March 31, 2024
(in thousands)
U.S.LAAPEMEACanadaTotal
Product category net sales
Apparel, Accessories and Equipment$397,488 $107,963 $72,390 $41,213 $619,054 
Footwear76,918 30,683 32,130 11,197 150,928 
Total$474,406 $138,646 $104,520 $52,410 $769,982 
Channel net sales
Wholesale$217,134 $67,031 $75,748 $30,984 $390,897 
Direct-to-consumer257,272 71,615 28,772 21,426 379,085 
Total$474,406 $138,646 $104,520 $52,410 $769,982 

Three Months Ended March 31, 2023
(in thousands)
U.S.LAAPEMEACanadaTotal
Product category net sales
Apparel, Accessories and Equipment$415,928 $100,421 $71,957 $44,296 $632,602 
Footwear101,547 35,992 36,332 14,120 187,991 
Total$517,475 $136,413 $108,289 $58,416 $820,593 
Channel net sales
Wholesale$259,350 $71,162 $84,578 $37,398 $452,488 
Direct-to-consumer258,125 65,251 23,711 21,018 368,105 
Total$517,475 $136,413 $108,289 $58,416 $820,593 

PERFORMANCE OBLIGATIONS

For the three months ended March 31, 2024 and 2023, Net sales recognized from performance obligations related to prior periods were not material. Net sales expected to be recognized in any future period related to remaining performance obligations is not material.

CONTRACT BALANCES

As of March 31, 2024, December 31, 2023 and March 31, 2023, the Company did not have contract assets and had an immaterial amount of contract liabilities included in Accrued liabilities on the unaudited Condensed Consolidated Balance Sheets.
COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 8
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg

NOTE 3 — INTANGIBLE ASSETS, NET AND GOODWILL

INTANGIBLE ASSETS, NET

Intangible assets, net consisted of the following:

(in thousands)
March 31, 2024December 31, 2023March 31, 2023
Intangible assets with definite lives:
Patents and purchased technology$14,198 $14,198 $14,198 
Customer relationships23,000 23,000 23,000 
Gross carrying amount37,198 37,198 37,198 
Accumulated amortization:
Patents and purchased technology(14,198)(14,198)(14,198)
Customer relationships(22,725)(22,313)(21,075)
Accumulated amortization(36,923)(36,511)(35,273)
Net carrying amount275 687 1,925 
Intangible assets with indefinite lives79,221 79,221 79,221 
Intangible assets, net$79,496 $79,908 $81,146 

Amortization expense for intangible assets subject to amortization was $0.4 million for each of the three months ended March 31, 2024 and 2023. The remaining amortization expense of intangible assets with definite lives will be recognized in 2024.


GOODWILL

There have been no changes to the Company's goodwill as described in Note 6 in Part II, Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

NOTE 4 — COMMITMENTS AND CONTINGENCIES

LITIGATION

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.

NOTE 5 — SHAREHOLDERS' EQUITY

Since the inception of the Company's stock repurchase plan in 2004 through March 31, 2024, the Company's Board of Directors has authorized the repurchase of $2.0 billion of the Company's common stock, excluding excise tax. Shares of the Company's common stock may be purchased in the open market or through privately negotiated transactions, subject to market conditions, and generally settle subsequent to the trade date. The repurchase program does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time.

Under this program as of March 31, 2024, the Company had repurchased 34.7 million shares at an aggregate purchase price of $1,704.8 million and had $295.2 million remaining available, excluding excise tax. During the three months ended March 31, 2024 and 2023, the Company repurchased an aggregate of $50.2 million and $15.8 million, respectively, of common stock under this program, excluding excise tax.
COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 9
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg

NOTE 6 — STOCK-BASED COMPENSATION

The Company's Stock Incentive Plan allows for grants of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, and other stock-based or cash-based awards. The Company uses original issuance shares to satisfy share-based payments.

STOCK-BASED COMPENSATION EXPENSE

Stock-based compensation expense consisted of the following:

Three Months Ended March 31,
(in thousands)20242023
Stock options$1,647 $2,038 
Restricted stock units3,997 3,770 
Total$5,644 $5,808 

STOCK OPTIONS

During the three months ended March 31, 2024, the Company granted a total of 156,277 stock options at a weighted average grant date fair value of $20.87 per option. As of March 31, 2024, unrecognized costs related to outstanding stock options totaled $13.4 million, before any related tax benefit. These unrecognized costs related to stock options are expected to be recognized over a weighted average remaining period of 2.61 years.

RESTRICTED STOCK UNITS

During the three months ended March 31, 2024, the Company granted 399,170 restricted stock units at a weighted average grant date fair value of $78.65 per restricted stock unit. As of March 31, 2024, unrecognized costs related to outstanding restricted stock units totaled $45.6 million, before any related tax benefit. These unrecognized costs related to restricted stock units are expected to be recognized over a weighted average remaining period of 3.05 years.

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 10
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg
NOTE 7 — EARNINGS PER SHARE

Earnings per share ("EPS") is presented on both a basic and diluted basis. Basic EPS is based on the weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur if outstanding securities or other contracts to issue common stock were exercised or converted into common stock.

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

Three Months Ended March 31,
(in thousands, except per share amounts)
20242023
Weighted average common shares outstanding, used in computing basic earnings per share
59,823 62,133 
Effect of dilutive stock options and restricted stock units175 284 
Weighted average common shares outstanding, used in computing diluted earnings per share
59,998 62,417 
Earnings per share:
Basic$0.71 $0.74 
Diluted$0.71 $0.74 
Anti-dilutive common shares (1)
1,996 1,574 
(1) Common stock related to stock options, service-based restricted stock units and certain market-based restricted stock units, and performance-based restricted stock units were outstanding but were excluded from the computation of diluted EPS because their effect would be anti-dilutive under the treasury stock method or because the shares were subject to performance conditions that had not been met.

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 11
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg
NOTE 8 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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

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

(in thousands)Available-for-
sale securities		Derivative transactionsForeign currency
 translation
adjustments		Total
Balance as of December 31, 2023
$145 $3,689 $(49,670)$(45,836)
Other comprehensive income (loss) before reclassifications(145)11,727 (14,987)(3,405)
Amounts reclassified from accumulated other comprehensive income (loss) (1)
— (1,950)— (1,950)
Net other comprehensive income (loss) during the period(145)9,777 (14,987)(5,355)
Balance as of March 31, 2024
$— $13,466 $(64,657)$(51,191)
(1) Amounts reclassified are recorded in Net sales, Cost of sales, or Other non-operating income, net on the unaudited Condensed Consolidated Statements of Operations. Refer to Note 10 for further information regarding reclassifications.

(in thousands)Derivative transactionsForeign currency
 translation
adjustments		Total
Balance as of December 31, 2022
$21,790 $(52,427)$(30,637)
Other comprehensive income (loss) before reclassifications(1,678)1,480 (198)
Amounts reclassified from accumulated other comprehensive income (loss) (1)
(3,743)— (3,743)
Net other comprehensive income (loss) during the period(5,421)1,480 (3,941)
Balance as of March 31, 2023
$16,369 $(50,947)$(34,578)
(1) Amounts reclassified are recorded in Net sales, Cost of sales, or Other non-operating income, net on the unaudited Condensed Consolidated Statements of Operations. Refer to Note 10 for further information regarding reclassifications.

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 12
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg
NOTE 9 — SEGMENT INFORMATION

The Company has four reportable geographic segments: U.S., LAAP, EMEA, and Canada, which are reflective of the Company's internal organization, management and oversight structure. 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. 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.

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

Three Months Ended March 31,
(in thousands)
20242023
Net sales to unrelated entities:
U.S.$474,406 $517,475 
LAAP138,646 136,413 
EMEA104,520 108,289 
Canada52,410 58,416 
$769,982 $820,593 
Segment operating income:
U.S.$72,993 $81,600 
LAAP21,822 18,326 
EMEA19,146 20,354 
Canada11,168 10,801 
Total segment operating income125,129 131,081 
Unallocated corporate expenses(80,448)(74,654)
Interest income, net9,197 3,283 
Other non-operating income, net271 850 
Income before income tax$54,149 $60,560 

CONCENTRATIONS

The Company had one customer that accounted for approximately 14.4%, 19.8% and 12.3% of Accounts receivable, net as of March 31, 2024, December 31, 2023 and March 31, 2023, respectively. The Company did not have any customers that accounted for 10% or more of Net sales for the three months ended March 31, 2024 and 2023.

NOTE 10 — FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

In the normal course of business, the Company's financial position, results of operations and cash flows are routinely subject to a variety of risks. These risks include risks associated with financial markets, primarily currency exchange rate risk and, to a lesser extent, interest rate risk and equity market risk. The Company regularly assesses these risks and has established policies and business practices designed to mitigate them. The Company does not engage in speculative trading in any financial market.

The Company actively manages the risk of changes in functional currency equivalent cash flows resulting from anticipated non-functional currency denominated purchases and sales. Subsidiaries that use European euros, Canadian dollars, Japanese yen, Chinese renminbi, or Korean won as their functional currency are primarily exposed to changes in functional currency equivalent cash flows from anticipated United States dollar inventory purchases. Subsidiaries that use United States dollars and euros as their functional currency also have non-functional currency denominated sales for which the Company hedges the Canadian dollar and British pound sterling. The Company seeks to
COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 13
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg
manage these risks by using currency forward contracts formally designated and effective as cash flow hedges. Hedge effectiveness is generally determined by evaluating the ability of a hedging instrument's cumulative change in fair value to offset the cumulative change in the present value of expected cash flows on the underlying exposures. Time value components ("forward points") for forward contracts are included in the fair value of the cash flow hedge. These costs or benefits are included in Accumulated other comprehensive income (loss) until the underlying hedge transaction is recognized in either Net sales or Cost of sales, at which time, the forward points will also be recognized as a component of Net income.

The Company also uses currency forward contracts not formally designated as hedges to manage the consolidated currency exchange rate risk associated with the remeasurement of non-functional currency denominated monetary assets and liabilities by subsidiaries that use United States dollars, euros, Canadian dollars, yen, renminbi, or won as their functional currency. Non-functional currency denominated monetary assets and liabilities consists of cash and cash equivalents, short-term investments, receivables, payables, deferred income taxes, and intercompany loans and dividends. The gains and losses generated on these currency forward contracts not formally designated as hedges are expected to be largely offset in Other non-operating income, net by the gains and losses generated from the remeasurement of the non-functional currency denominated monetary assets and liabilities.

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

(in thousands)March 31, 2024December 31, 2023March 31, 2023
Derivative instruments designated as cash flow hedges:
Currency forward contracts$597,355 $634,676 $525,781 
Derivative instruments not designated as hedges:
Currency forward contracts$231,449 $342,532 $393,450 

As of March 31, 2024, $13.0 million of deferred net gains on both outstanding and matured derivatives recorded in Accumulated other comprehensive income (loss) are expected to be reclassified to Net income during the next twelve months as a result of underlying hedged transactions also being recorded in Net sales or Cost of sales in the unaudited Condensed Consolidated Statements of Operations. When outstanding derivative contracts mature, actual amounts ultimately reclassified to Net sales or Cost of sales in the unaudited Condensed Consolidated Statements of Operations are dependent on United States dollar exchange rates in effect against the euro, pound sterling, renminbi, Canadian dollar, won, and yen as well as the euro exchange rate in effect against the pound sterling.

As of March 31, 2024, the Company's derivative contracts had a remaining maturity of less than 3 years. The maximum net exposure to any single counterparty, which is generally limited to the aggregate unrealized gain of all contracts with that counterparty, was $4.4 million as of March 31, 2024. All of the Company's derivative counterparties have credit ratings that are investment grade or higher. The Company is a party to master netting arrangements that contain features that allow counterparties to net settle amounts arising from multiple separate derivative transactions or net settle in the case of certain triggering events such as a bankruptcy or major default of one of the counterparties to the transaction. The Company has not pledged assets or posted collateral as a requirement for entering into or maintaining derivative positions.

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

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

(in thousands)Balance Sheet ClassificationMarch 31, 2024December 31, 2023March 31, 2023
Derivative instruments designated as cash flow hedges:
Derivative instruments in asset positions:
Currency forward contractsPrepaid expenses and other current assets$12,864 $7,367 $16,826 
Currency forward contractsOther non-current assets5,423 961 5,935 
Derivative instruments in liability positions:
Currency forward contractsAccrued liabilities1,090 4,121 2,630 
Currency forward contractsOther long-term liabilities155 2,629 1,788 
Derivative instruments not designated as cash flow hedges:
Derivative instruments in asset positions:
Currency forward contractsPrepaid expenses and other current assets1,978 2,833 890 
Derivative instruments in liability positions:
Currency forward contractsAccrued liabilities828 2,269 2,257 

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

Statement Of
Operations
Classification
Three Months Ended March 31,
(in thousands)20242023
Currency forward contracts:
Derivative instruments designated as cash flow hedges:
Gain (loss) recognized in other comprehensive income (loss), net of tax
—$11,727 $(1,678)
Gain (loss) reclassified from accumulated other comprehensive income (loss) to income for the effective portion
Net sales(282)191 
Gain reclassified from accumulated other comprehensive income (loss) to income for the effective portion
Cost of sales2,971 5,762 
Gain (loss) reclassified from accumulated other comprehensive income (loss) to income as a result of cash flow hedge discontinuance
Other non-operating income, net
68 (7)
Derivative instruments not designated as cash flow hedges:
Gain (loss) recognized in income
Other non-operating income, net
2,925 (1,187)



NOTE 11 — FAIR VALUE MEASURES

Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 15
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg
Level 1 —observable inputs such as quoted prices for identical assets or liabilities in active liquid markets;
Level 2—
inputs, other than the quoted market prices in active markets, that are observable, either directly or indirectly; or observable market prices in markets with insufficient volume or infrequent transactions; and
Level 3—
unobservable inputs for which there is little or no market data available, that require the reporting entity to develop its own assumptions.

The Company's assets and liabilities measured at fair value are categorized as Level 1 or Level 2 instruments. Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from inputs, other than quoted market prices in active markets, that are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions.

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

(in thousands)Level 1Level 2Level 3Total
Assets:
Cash equivalents:
Money market funds$57,144 $— $— $57,144 
U.S. Government treasury bills— 74,828 — 74,828 
Time deposits (1)
— 40,699 — 40,699 
Short-term investments:
Available-for-sale short-term investments: (2)
U.S. Government treasury bills— 366,982 — 366,982 
Other short-term investments:
Money market funds343 — — 343 
Mutual fund shares1,945 — — 1,945 
Prepaid expenses and other current assets:
Derivative financial instruments— 14,842 — 14,842 
Other non-current assets:
Money market funds 1,532 — — 1,532 
Mutual fund shares 25,449 — — 25,449 
Derivative financial instruments— 5,423 — 5,423 
Total assets measured at fair value$86,413 $502,774 $— $589,187 
Liabilities:
Accrued liabilities:
Derivative financial instruments$— $1,918 $— $1,918 
Other long-term liabilities:
Derivative financial instruments— 155 — 155 
Total liabilities measured at fair value$— $2,073 $— $2,073 
(1) Time deposits are carried at amortized cost on the unaudited Condensed Consolidated Balance Sheet, which reasonably approximates fair value.
(2) Available-for-sale short-term investments have remaining maturities of less than one year.

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 16
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 are as follows:

(in thousands)Level 1Level 2Level 3Total
Assets:
Cash equivalents:
Money market funds$75,758 $— $— $75,758 
U.S. Government treasury bills— 9,977 — 9,977 
Time deposits (1)
— 40,876 — 40,876 
Short-term investments:
Available-for-sale short-term investments: (2)
U.S. Government treasury bills — 412,987 — 412,987 
Other short-term investments:
Money market funds314 — — 314 
Mutual fund shares884 — — 884 
Prepaid expenses and other current assets:
Derivative financial instruments— 10,200 — 10,200 
Other non-current assets:
Money market funds 1,796 — — 1,796 
Mutual fund shares 24,808 — — 24,808 
Derivative financial instruments— 961 — 961 
Total assets measured at fair value$103,560 $475,001 $— $578,561 
Liabilities:
Accrued liabilities:
Derivative financial instruments$— $6,390 $— $6,390 
Other long-term liabilities:
Derivative financial instruments— 2,629 — 2,629 
Total liabilities measured at fair value$— $9,019 $— $9,019 
(1) Time deposits are carried at amortized cost on the unaudited Condensed Consolidated Balance Sheet, which reasonably approximates fair value.
(2) Available-for-sale short-term investments have remaining maturities of less than one year.
COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 17
Notes to unaudited Condensed Consolidated Financial Statements
CSC logo.jpg
Assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 are as follows:

(in thousands)Level 1Level 2Level 3Total
Assets:
Cash equivalents:
Money market funds$106,092 $— $— $106,092 
U.S. Government treasury bills— 49,695 — 49,695 
Short-term investments:
Available-for-sale short-term investments: (1)
U.S. Government treasury bills$— $98,746 $— $98,746 
Other short-term investments:
Money market funds284 — — 284 
Mutual fund shares482 — — 482 
Prepaid expenses and other current assets:
Derivative financial instruments— 17,716 — 17,716 
Other non-current assets:
Money market funds 1,712 — — 1,712 
Mutual fund shares 20,762 — — 20,762 
Derivative financial instruments— 5,935 — 5,935 
Total assets measured at fair value$129,332 $172,092 $— $301,424 
Liabilities:
Accrued liabilities:
Derivative financial instruments$— $4,887 $— $4,887 
Other long-term liabilities:
Derivative financial instruments— 1,788 — 1,788 
Total liabilities measured at fair value$— $6,675 $— $6,675 
(1) Available-for-sale short-term investments have remaining maturities of less than one year.

NON-RECURRING FAIR VALUE MEASUREMENTS

The Company measured the fair value of certain trademark indefinite-lived intangible assets and goodwill as part of impairment testing for the year ended December 31, 2023. The inputs used to measure the fair value of these assets are primarily significant unobservable inputs and, as such, considered Level 3 fair value measurements. Refer to Note 6 in Part II, Item 8 in the Annual Report on Form 10-K for further discussion.

ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with "Special Note Regarding Forward-Looking Statements", Part I, Item 1 and Part II, Item 1A of this Quarterly Report on Form 10-Q.

OVERVIEW

As a global leader in designing, developing, marketing, and distributing outdoor, active and lifestyle products, our mission is to connect active people with their passions. We manage our product line in two major categories: apparel, accessories, and equipment products and footwear products. We provide our products through our four brands: Columbia, SOREL, Mountain Hardwear, and prAna. Apparel, accessories, and equipment products are provided by our Columbia, Mountain Hardwear and prAna brands. Footwear products are provided by our Columbia and SOREL brands. We sell our products in more than 100 countries and operate in four geographic segments: U.S., LAAP, EMEA, and Canada.
COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 18
CSC logo.jpg

We are investing in our strategic priorities to:
•accelerate profitable growth;
•create iconic products that are differentiated, functional and innovative;
•drive brand engagement through increased, focused demand creation investments;
•enhance consumer experiences by investing in capabilities to delight and retain consumers;
•amplify marketplace excellence, with digitally-led, omni-channel, global distribution; and
•empower talent that is driven by our core values through a diverse and inclusive workplace.

Ultimately, we expect our investments to enable market share capture across our brand portfolio, expand gross margin, improve selling, general and administrative expense efficiency, and drive improved operating margin over the long-term. We seek to bring additional consumer segments to our brands by proactively managing the promotional activity of the brands in the marketplace. For the Columbia brand, we are working to establish the Columbia.com site as the best expression of the brand through enhancements to the consumer experience as well as generally less promotion and discount activity.

Profit Improvement Program

As part of our strategic priorities, we are implementing a multi-year profit improvement program to accelerate profitable growth and improve the efficiency of our operations. We are focused on four areas of cost reduction and realignment, including:
•operational cost savings;
•organizational cost savings;
•operating model improvements; and
•indirect, or non-inventory, spending.

When the benefits of this program are combined with the cost savings we anticipate to receive from normalized inventory levels, we believe we can reach $125 million to $150 million in annualized savings by 2026. We anticipate these cost savings will ramp up over the course of 2024 and 2025, with the full benefit being realized in 2026. In 2024, we anticipate realizing approximately $75 million to $90 million in realized cost savings, net of approximately $3 million to $4 million of severance and other costs.

Business Environment and Trends

Increasing Competitive Environment | We believe many brands have shifted their strategies to capitalize on the emergence of casual and lifestyle trends. The versatility of casual and lifestyle products provides consumers the ability to use these products in a variety of settings, including outdoor activities. This shift has been evident in both the apparel and footwear product categories. We believe this trend has accelerated because of changes in consumer behavior resulting from the COVID-19 pandemic, which has resulted in an increasingly competitive apparel and footwear marketplace.

Economic Environment Impacting Demand | We believe general economic uncertainty is impacting consumer and customer behavior and demand. Customers have been increasingly cautious managing inventory and in placing advance orders. This cautiousness has been most pronounced in the U.S., but we believe that retailer prudence is spreading to other regions, including Canada and, to a lesser extent, Europe. Consumer demand, particularly in the U.S., has been generally soft for outdoor apparel and footwear products. We anticipate these trends will persist throughout 2024.

Promotional and Clearance Environment | Since last year, we have been proactively managing promotional activity on Columbia.com to help establish the site as the best expression of the brand. However, we believe consumers are still seeking value from us, particularly in the U.S. This has resulted in reduced demand for our direct-to-consumer ("DTC") e-commerce sites and branded stores. To capture demand associated with value conscious consumers, we have increasingly relied on our fleet of DTC brick-and-mortar stores including our outlet stores and clearance locations, which offer discounted and clearance merchandise. The use of temporary clearance stores results in lower DTC product margins, increased SG&A expenses and modest operating income. We believe this method of liquidation results in stronger financial returns to the Company in comparison to wholesale closeout sales channel alternatives and has a less disruptive impact in the marketplace. We anticipate continuing to utilize temporary clearance locations to assist with inventory liquidation throughout 2024.

Changing Consumer Shopping Habits | We believe consumers in the U.S. have adjusted shopping habits in a post-COVID pandemic world and have increasingly participated in brick-and-mortar retail shopping experiences. As a result, we expect our U.S. e-commerce channel to
COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 19
CSC logo.jpg
continue to be challenged year-over-year. We believe this is a transitional trend and that, over time, growth in digital environments will outpace physical retail sales growth.

Distribution Center and Third-Party Capacity Pressure | Elevated inventory levels resulted in storage and process capacity pressures within our distribution centers and third-party logistics operations throughout 2023. These pressures included additional inventory carrying costs related to incremental outside storage, and other inventory related holding and handling costs, including losses in productivity, as we worked to normalize our inventory position. We exited 2023 with more normalized inventory levels. As these storage and process capacity pressures have alleviated, we have begun to realize lower distribution-related expenses and expect to see further benefit in our operating results for full year 2024.

Favorable Freight Cost Environment | Over the past year, we have realized significant declines in ocean freight rates and costs in comparison to prior year elevated levels. These lower ocean freight rates resulted in substantially lower inbound freight costs which benefited our gross margin. Looking forward, we expect less of a favorable benefit from lower inbound freight costs. Worldwide ocean freight rates continue to decline and we expect to achieve additional cost savings and resulting gross margin improvement as we finalize freight contracts which take effect beginning June 1. We anticipate these lower ocean freight costs will persist and continue to benefit gross margin throughout 2024.

Seasonality | Our business is affected by the general seasonal trends common to the industry, including seasonal weather and discretionary consumer shopping and spending patterns. Our products are marketed on a seasonal basis, and our sales are weighted substantially toward the third and fourth quarters, while our operating costs are more equally distributed throughout the year. In 2023, nearly 60% of our net sales and nearly 80% of our operating income were realized in the second half of the year.

Heightened Geopolitical Risk | We sell our products in more than 100 countries and our ability to sell in certain markets may be impacted by ongoing geopolitical tensions. We believe these tensions will remain elevated and have manifested, and will continue to manifest, themselves in certain regions where we operate.

Increasing Regulatory Environment | Recently, the number of regulations at the global and jurisdictional level impacting our business, and in particular our products, has significantly increased. We expect this trend to continue, and as a result, will impact our expenses, product input costs and ultimately our products, which may in turn impact our revenue. These regulatory matters at a minimum include regulations related to climate, social, privacy, and product chemistry. For example, in anticipation of the effectiveness of the regulations in California and New York states related to perfluoroalkyl and polyfluoroalkyl substances ("PFAS"), we have been working to eliminate PFAS chemicals across our global product line. We stopped manufacturing any apparel or footwear with PFAS intentionally added prior to our Fall 2024 season. These PFAS matters may result in a more promotional environment in 2024 as retailers move through merchandise containing PFAS.

RESULTS OF OPERATIONS

The following discussion of our results of operations and liquidity and capital resources should be read in conjunction with Part I, Item 1 of this Quarterly Report on Form 10-Q.

Non-GAAP Financial Measure
To supplement financial information reported in accordance with accounting principles generally accepted in the United States ("GAAP"), we disclose constant-currency net sales information, which is a non-GAAP financial measure, to provide a framework to assess how the business performed excluding the effects of changes in foreign currency exchange rates against the United States dollar between comparable reporting periods. We calculate constant-currency net sales by translating net sales in foreign currencies for the current period into United States dollars at the exchange rates that were in effect during the comparable period of the prior year. Management believes that this non-GAAP financial measure reflects an additional and useful way of viewing an aspect of our operations that, when viewed in conjunction with our GAAP results, provides a more comprehensive understanding of our business and operations. In particular, investors may find the non-GAAP measure useful by reviewing our net sales results without the volatility in foreign currency exchange rates. This non-GAAP financial measure also facilitates management's internal comparisons to our historical net sales results and comparisons to competitors' net sales results. Constant-currency financial measures should be viewed in addition to, and not in lieu of or superior to, our financial measures calculated in accordance with GAAP.

The following discussion includes references to constant-currency net sales, and we provide a reconciliation of this non-GAAP measure to the most directly comparable financial measure calculated in accordance with GAAP below.

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 20
CSC logo.jpg
Results of Operations — Consolidated

The following table presents the items in our unaudited Condensed Consolidated Statements of Operations, both in dollars and as a percentage of net sales:

Three Months Ended March 31,
(in millions, except for percentage of net sales and per share amounts)20242023
Net sales$770.0 100.0 %$820.6 100.0 %
Cost of sales380.4 49.4 %421.1 51.3 %
Gross profit389.6 50.6 %399.5 48.7 %
Selling, general and administrative expenses349.3 45.4 %347.4 42.3 %
Net licensing income4.4 0.6 %4.3 0.5 %
Operating income44.7 5.8 %56.4 6.9 %
Interest income, net9.2 1.2 %3.3 0.4 %
Other non-operating income, net0.2 — %0.9 0.1 %
Income before income tax54.1 7.0 %60.6 7.4 %
Income tax expense11.8 1.5 %14.4 1.8 %
Net income$42.3 5.5 %$46.2 5.6 %
Diluted earnings per share$0.71 $0.74 

COLUMBIA SPORTSWEAR COMPANY | Q1 2024 FORM 10-Q | 21
CSC logo.jpg
Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

Net Sales. Net sales by brand, product category and channel are summarized in the following table:

Three Months Ended March 31,
(in millions, except for percentages)
Reported
Net Sales
2024
Adjust for Foreign Currency Translation
Constant-currency
Net Sales
2024 (1)
Reported
Net Sales
2023
Reported
Net Sales
% Change
Constant-currency
Net Sales
% Change (1)
Brand Net Sales:
Columbia