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

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measures

Fair Value Measures

9 Months Ended

Sep. 30, 2019

NOTE 16—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 would be received to sell an asset or paid 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:

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.

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 were as follows:



(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	72,941	$	—	$	—	$	72,941
Other short-term investments:
Mutual fund shares	1,477		—		—		1,477
Other current assets:
Derivative financial instruments (Note 15)	—		18,460		—		18,460
Other non-current assets:
Money market funds	1,528		—		—		1,528
Mutual fund shares	11,362		—		—		11,362
Derivative financial instruments (Note 15)	—		4,830		—		4,830
Total assets measured at fair value	$	87,308	$	23,290	$	—	$	110,598
Liabilities:
Accrued liabilities:
Derivative financial instruments (Note 15)	$	—	$	521	$	—	$	521
Other long-term liabilities:
Derivative financial instruments (Note 15)	—		109		—		109
Total liabilities measured at fair value	$	—	$	630	$	—	$	630

⁽¹⁾Investments have remaining maturities of less than one year.

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 were as follows:



(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	122,237	$	—	$	—	$	122,237
U.S. Government treasury bills	—		39,952		—		39,952
Available-for-sale short-term investments⁽¹⁾
U.S. Government treasury bills	—		261,602		—		261,602
Other short-term investments:
Mutual fund shares	1,200		—		—		1,200
Other current assets:
Derivative financial instruments (Note 15)	—		13,615		—		13,615
Other non-current assets:
Money market funds	869		—		—		869
Mutual fund shares	8,606		—		—		8,606
Derivative financial instruments (Note 15)	—		9,922		—		9,922
Total assets measured at fair value	$	132,912	$	325,091	$	—	$	458,003
Liabilities:
Accrued liabilities:
Derivative financial instruments (Note 15)	$	—	$	1,017	$	—	$	1,017
Other long-term liabilities:
Derivative financial instruments (Note 15)	—		1		—		1
Total liabilities measured at fair value	$	—	$	1,018	$	—	$	1,018

⁽¹⁾Investments have remaining maturities of less than one year.

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 were as follows:



(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	70,573	$	—	$	—	$	70,573
Available-for-sale short-term investments⁽¹⁾:
U.S. Government treasury bills	—		267,861		—		267,861
Other short-term investments:
Mutual funds shares	1,452		—		—		1,452
Other current assets:
Derivative financial instruments (Note 15)	—		8,127		—		8,127
Other non-current assets:
Mutual fund shares	9,950		—		—		9,950
Derivative financial instruments (Note 15)	—		7,963		—		7,963
Total assets measured at fair value	$	81,975	$	283,951	$	—	$	365,926
Liabilities:
Accrued liabilities:
Derivative financial instruments (Note 15)	$	—	$	738	$	—	$	738
Total liabilities measured at fair value	$	—	$	738	$	—	$	738

⁽¹⁾Investments have remaining maturities of less than one year.

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, which are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions.

Non-recurring Fair Value Measurements

There were no material assets and liabilities measured at fair value on a nonrecurring basis as of September 30, 2019, December 31, 2018 or September 30, 2018.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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