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

Quarterly report pursuant to Section 13 or 15(d)

Revenues

Revenues

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Revenues

REVENUES

Disaggregated Revenue

As disclosed below in Note 10, the Company has aggregated its operating segments into four geographic segments: (1) United States, (2) LAAP, (3) Europe, Middle East and Africa ("EMEA") and (4) Canada, which are reflective of the Company's internal organization, management and oversight structure. 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 June 30, 2018
	United States		LAAP		EMEA		Canada		Total
Product category revenues
Apparel, Accessories and Equipment	$	250,394	$	74,600	$	56,881	$	12,782	$	394,657
Footwear	29,776		26,284		28,105		2,797		86,962
Total	$	280,170	$	100,884	$	84,986	$	15,579	$	481,619
Sales channel revenues
Wholesale	$	129,166	$	46,146	$	78,003	$	7,894	$	261,209
Direct-to-consumer	151,004		54,738		6,983		7,685		220,410
Total	$	280,170	$	100,884	$	84,986	$	15,579	$	481,619



	Three Months Ended June 30, 2017
	United States		LAAP		EMEA		Canada		Total
Product category revenues
Apparel, Accessories and Equipment	$	216,091	$	58,419	$	43,864	$	11,318	$	329,692
Footwear	22,102		21,054		23,525		2,531		69,212
Total	$	238,193	$	79,473	$	67,389	$	13,849	$	398,904
Sales channel revenues
Wholesale	$	108,183	$	33,550	$	62,131	$	7,696	$	211,560
Direct-to-consumer	130,010		45,923		5,258		6,153		187,344
Total	$	238,193	$	79,473	$	67,389	$	13,849	$	398,904



	Six Months Ended June 30, 2018
	United States		LAAP		EMEA		Canada		Total
Product category revenues
Apparel, Accessories and Equipment	$	563,720	$	170,980	$	104,356	$	45,560	$	884,616
Footwear	79,294		61,473		52,405		11,139		204,311
Total	$	643,014	$	232,453	$	156,761	$	56,699	$	1,088,927
Sales channel revenues
Wholesale	$	316,006	$	114,333	$	135,584	$	39,225	$	605,148
Direct-to-consumer	327,008		118,120		21,177		17,474		483,779
Total	$	643,014	$	232,453	$	156,761	$	56,699	$	1,088,927



	Six Months Ended June 30, 2017
	United States		LAAP		EMEA		Canada		Total
Product category revenues
Apparel, Accessories and Equipment	$	502,834	$	145,188	$	80,693	$	41,056	$	769,771
Footwear	68,543		52,629		42,030		9,724		172,926
Total	$	571,377	$	197,817	$	122,723	$	50,780	$	942,697
Sales channel revenues
Wholesale	$	291,179	$	102,770	$	108,616	$	37,845	$	540,410
Direct-to-consumer	280,198		95,047		14,107		12,935		402,287
Total	$	571,377	$	197,817	$	122,723	$	50,780	$	942,697

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 receive 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 as Net licensing income 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 shipping and handling activities as fulfillment costs, and as such recognize the costs for these activities at the time related revenue is recognized. The majority of these costs are recorded as SG&A expenses, and the direct costs associated with shipping goods to customers and consumers are recorded as costs of goods sold. 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 and six months ended June 30, 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 June 30, 2018, contract liabilities recorded on the Condensed Consolidated Balance Sheets, which consisted of obligations associated with our gift card and customer loyalty programs, were not material.