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

Quarterly report pursuant to Section 13 or 15(d)

Revenues

Revenues

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Revenues

REVENUES

Disaggregated Revenue

As disclosed below in Note 11, 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 September 30, 2018
	United States		LAAP		EMEA		Canada		Total
Product category revenues
Apparel, Accessories and Equipment	$	406,474	$	92,869	$	63,950	$	54,294	$	617,587
Footwear	89,687		25,510		36,401		26,616		178,214
Total	$	496,161	$	118,379	$	100,351	$	80,910	$	795,801
Sales channel revenues
Wholesale	$	320,102	$	67,154	$	87,434	$	70,099	$	544,789
Direct-to-consumer	176,059		51,225		12,917		10,811		251,012
Total	$	496,161	$	118,379	$	100,351	$	80,910	$	795,801



	Three Months Ended September 30, 2017
	United States		LAAP		EMEA		Canada		Total
Product category revenues
Apparel, Accessories and Equipment	$	379,387	$	91,843	$	55,172	$	53,518	$	579,920
Footwear	76,583		31,153		32,350		27,361		167,447
Total	$	455,970	$	122,996	$	87,522	$	80,879	$	747,367
Sales channel revenues
Wholesale	$	310,607	$	82,148	$	78,126	$	72,875	$	543,756
Direct-to-consumer	145,363		40,848		9,396		8,004		203,611
Total	$	455,970	$	122,996	$	87,522	$	80,879	$	747,367



	Nine Months Ended September 30, 2018
	United States		LAAP		EMEA		Canada		Total
Product category revenues
Apparel, Accessories and Equipment	$	970,194	$	263,849	$	168,306	$	99,854	$	1,502,203
Footwear	168,981		86,983		88,806		37,755		382,525
Total	$	1,139,175	$	350,832	$	257,112	$	137,609	$	1,884,728
Sales channel revenues
Wholesale	$	636,108	$	181,487	$	223,018	$	109,324	$	1,149,937
Direct-to-consumer	503,067		169,345		34,094		28,285		734,791
Total	$	1,139,175	$	350,832	$	257,112	$	137,609	$	1,884,728



	Nine Months Ended September 30, 2017
	United States		LAAP		EMEA		Canada		Total
Product category revenues
Apparel, Accessories and Equipment	$	882,224	$	237,025	$	135,868	$	94,574	$	1,349,691
Footwear	145,126		83,782		74,380		37,085		340,373
Total	$	1,027,350	$	320,807	$	210,248	$	131,659	$	1,690,064
Sales channel revenues
Wholesale	$	601,789	$	184,912	$	186,745	$	110,720	$	1,084,166
Direct-to-consumer	425,561		135,895		23,503		20,939		605,898
Total	$	1,027,350	$	320,807	$	210,248	$	131,659	$	1,690,064

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 nine months ended September 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 September 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.