Quarterly report pursuant to Section 13 or 15(d)

Non-Controlling Interest

v3.10.0.1
Non-Controlling Interest
 9 Months Ended
Sep. 30, 2018
Noncontrolling Interest [Abstract]  
Non-controlling Interest
NON-CONTROLLING INTEREST
The Company owns a 60% controlling interest in a joint venture formed with Swire Resources Limited ("Swire") to support the development and operation of the Company's business in China. The accounts of the joint venture are included in the Condensed Consolidated Financial Statements. Swire's share of net income from the joint venture is included in Net income attributable to non-controlling interest in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017. The 40% non-controlling equity interest in this entity is included in total equity as Non-controlling interest in the Condensed Consolidated Balance Sheets as of September 30, 2018 and 2017, and December 31, 2017.
In September 2018, the Company and Swire entered into an Equity Interest Transfer Agreement ("EITA"), in which the Company will buy out the 40% non-controlling interest in the joint venture. The buyout is subject to various terms and conditions, including regulatory approval in China and is expected to be completed in early 2019. As part of the buyout arrangement, the Company has placed approximately $13,970,000 in an escrow account as a portion of the funds needed to complete the buyout in 2019. These funds are included as Restricted cash in the Condensed Consolidated Balance Sheets at September 30, 2018. In addition, the China joint venture declared a dividend on June 14, 2018 of which Swire's share was approximately RMB136,539,000 (approximately US$21,332,000 at the date of declaration). The renminbi denominated dividend was paid in full in September 2018 and equated to approximately $19,949,000 on the date of payment.
The following table presents the changes in Columbia Sportswear Company shareholders' equity and non-controlling interest for the nine months ended September 30, 2018 (in thousands, except per share amounts):
 
 
Columbia Sportswear Company
 
Non-Controlling Interest
 
Total
Balance at December 31, 2017
 
$
1,621,951

 
$
30,308

 
$
1,652,259

Net income
 
154,996

 
6,603

 
161,599

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
Unrealized holding losses on available-for-sale securities
 
(158
)
 
—

 
(158
)
Derivative holding gains
 
17,472

 
1,070

 
18,542

Foreign currency translation adjustments
 
(12,147
)
 
(418
)
 
(12,565
)
Cash dividends ($0.66 per share)
 
(46,160
)
 
—

 
(46,160
)
Dividends to non-controlling interest
 
—

 
(21,332
)
 
(21,332
)
Issuance of common stock under employee stock plans, net of tax
 
12,286

 
—

 
12,286

Adoption of new accounting pronouncements (Note 2)
 
14,100

 
—

 
14,100

Stock-based compensation expense
 
10,247

 
—

 
10,247

Repurchase of common stock
 
(107,222
)
 
—

 
(107,222
)
Balance at September 30, 2018
 
$
1,665,365

 
$
16,231

 
$
1,681,596


The following table presents the changes in Columbia Sportswear Company shareholders' equity and non-controlling interest for the nine months ended September 30, 2017 (in thousands, except per share amounts):
 
 
Columbia Sportswear Company
 
Non-Controlling Interest
 
Total
Balance at December 31, 2016
 
$
1,560,820

 
$
20,691

 
$
1,581,511

Net income
 
112,195

 
6,476

 
118,671

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
Derivative holding losses
 
(15,993
)
 
(375
)
 
(16,368
)
Foreign currency translation adjustments
 
24,681

 
2,336

 
27,017

Cash dividends ($0.54 per share)
 
(37,617
)
 
—

 
(37,617
)
Issuance of common stock under employee stock plans, net
 
12,471

 
—

 
12,471

Stock-based compensation expense
 
8,277

 
—

 
8,277

Repurchase of common stock
 
(35,542
)
 
—

 
(35,542
)
Balance at September 30, 2017
 
$
1,629,292

 
$
29,128

 
$
1,658,420