Columbia Sportswear Company Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Revenues

Revenues

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenues

REVENUES

Disaggregated Revenue

The following tables disaggregate our operating segment revenue by product category and sales channel (in thousands), which we believe provides a meaningful depiction how the nature, timing, and uncertainty of revenues are affected by economic factors:



	Three Months Ended March 31, 2018
	United States		LAAP		EMEA		Canada		Total
Product category revenues
Apparel, Accessories and Equipment	$	313,326	$	96,380	$	47,475	$	32,778	$	489,959
Footwear	49,518		35,189		24,300		8,342		117,349
Total	$	362,844	$	131,569	$	71,775	$	41,120	$	607,308

Sales channel revenues
Wholesale	$	186,840	$	68,187	$	57,581	$	31,331	$	343,939
Direct-to-consumer	176,004		63,382		14,194		9,789		263,369
Total	$	362,844	$	131,569	$	71,775	$	41,120	$	607,308



	Three Months Ended March 31, 2017
	United States		LAAP		EMEA		Canada		Total
Product category revenues
Apparel, Accessories and Equipment	$	286,743	$	86,769	$	36,829	$	29,738	$	440,079
Footwear	46,441		31,575		18,505		7,193		103,714
Total	$	333,184	$	118,344	$	55,334	$	36,931	$	543,793

Sales channel revenues
Wholesale	$	182,996	$	69,220	$	46,485	$	30,149	$	328,850
Direct-to-consumer	150,188		49,124		8,849		6,782		214,943
Total	$	333,184	$	118,344	$	55,334	$	36,931	$	543,793

Accounting Policies

Revenues are recognized when our performance obligations are satisfied as evidenced by transfer of control of promised goods to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Within our wholesale channel, control generally transfers to the customer upon shipment to, or upon receipt by, the customer depending on the terms of sale with the customer. Within our direct-to-consumer ("DTC") channel, control generally transfers to the customer at the time of sale within our retail stores and concession-based arrangements and upon shipment to the customer with respect to e-commerce transactions.

The amount of consideration we receive and revenue we recognize across both wholesale and DTC channels varies with changes in sales returns and other accommodations and incentives we offer to our customers. When we give our customers the right to return products or provide other accommodations such as chargebacks and markdowns, we estimate the expected returns and claims based on historical rates as well as events and circumstances that indicate changes to historical rates of product returns and claims. We adjust our estimates of revenue at the earlier of when the most likely amount of consideration we expect to receive changes or when the amount of consideration becomes fixed.

Licensing income, which is presented separately on the Condensed 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 our licensees.

We expense sales commissions when incurred, which is generally at the time of sale, because the amortization period would have been one year or less. These costs are recorded within SG&A expenses.

We treat all shipping and handling activities as fulfillment costs, and as such recognize the costs for these activities within SG&A expenses at the time related revenue is recognized. Shipping and handling fees billed to customers are recorded as revenue.

Revenue recognized from contracts with customers is recorded net of sales taxes, value added taxes, or similar taxes that are collected on behalf of local taxing authorities.

Performance Obligations

For the three months ended March 31, 2018, revenue recognized from performance obligations related to prior periods was not material. Revenue expected to be recognized in any future period related to remaining performance obligations is not material.

Contract Balances

As of March 31, 2018, contract liabilities recorded on the Condensed Consolidated Balance Sheets, which were comprised of obligations associated with our gift card and customer loyalty programs, were not material.