See accompanying notes to condensed consolidated financial ~~statements.~~statements

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended March 31,
(in thousands, except per share amounts)	2021		2020
Net sales	$	625,606	$	568,228
Cost of sales	304,204		296,514
Gross profit	321,402		271,714
Selling, general and administrative expenses	254,389		276,820
Net licensing income	3,467		3,119
Income (loss) from operations	70,480		(1,987)
Interest income, net	278		1,813
Other non-operating income (expense), net	(304)		1,738
Income before income tax	70,454		1,564
Income tax expense	(14,554)		(1,351)
Net income	55,900		213

Earnings per share:
Basic	$	0.84	$	0
Diluted	$	0.84	$	0
Weighted average shares outstanding:
Basic	66,363		66,970
Diluted	66,885		67,412

Three Months Ended June 30, Six Months Ended June 30,
(in thousands, except per share amounts) 2020 2019 2020 2019
Net sales $ 316,611 $ 526,210 $ 884,839 $ 1,180,818
Cost of sales 170,381 272,619 466,895 590,498
Gross profit 146,230 253,591 417,944 590,320
Selling, general and administrative expenses 217,652 240,763 494,472 492,518
Net licensing income 1,122 3,537 4,241 6,521
Income (loss) from operations (70,300) 16,365 (72,287) 104,323
Interest income (expense), net (805) 2,571 1,008 5,971
Other non-operating income, net 935 1,032 2,673 1,478
Income (loss) before income tax (70,170) 19,968 (68,606) 111,772
Income tax benefit (expense) 19,463 3,061 18,112 (14,566)
Net income (loss) $ (50,707) $ 23,029 $ (50,494) $ 97,206
Earnings (loss) per share:
Basic $ (0.77) $ 0.34 $ (0.76) $ 1.43
Diluted $ (0.77) $ 0.34 $ (0.76) $ 1.41
Weighted average shares outstanding:
Basic 66,135 67,930 66,553 68,109
Diluted 66,135 68,560 66,553 68,825

See accompanying notes to condensed consolidated financial ~~statements.~~statements

Table of Contents

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

Three Months Ended June 30, Six Months Ended June 30,
(in thousands) 2020 2019 2020 2019
Net income (loss) $ (50,707) $ 23,029 $ (50,494) $ 97,206
Other comprehensive income (loss):
Unrealized holding gains on available-for-sale securities, net — — — 56
Unrealized gains (losses) on derivative transactions (net of tax effects of $1,521, $827, $(2,624) and $432, respectively) (4,862) (1,881) 6,663 (548)
Foreign currency translation adjustments (net of tax effects of $(460), $224, $37 and $887 respectively) 6,976 3,901 (8,098) 3,356
Other comprehensive income (loss) 2,114 2,020 (1,435) 2,864
Comprehensive income (loss) $ (48,593) $ 25,049 $ (51,929) $ 100,070


	Three Months Ended March 31,
(in thousands)	2021		2020
Net income	$	55,900	$	213
Other comprehensive loss:

Unrealized gains on derivative transactions (net of tax effects of $(3,368) and $(4,145), respectively)	8,563		11,525
Foreign currency translation adjustments (net of tax effects of $414 and $497, respectively)	(13,204)		(15,074)
Other comprehensive loss	(4,641)		(3,549)
Comprehensive income (loss)	$	51,259	$	(3,336)

See accompanying notes to condensed consolidated financial ~~statements.~~statements

Table of Contents

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


		Six Months Ended June 30,							Three Months Ended March 31,
(in thousands)	(in thousands)	2020		2019		(in thousands)	2021		2020
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Net income (loss)		$	(50,494)	$	97,206
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Net income						Net income	$	55,900	$	213
Adjustments to reconcile net income to net cash provided by operating activities:						Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and non-cash lease expense	Depreciation, amortization, and non-cash lease expense	65,924		57,487		Depreciation, amortization, and non-cash lease expense	30,459		32,994
Provision for uncollectible accounts receivable	Provision for uncollectible accounts receivable	22,815		(2,146)		Provision for uncollectible accounts receivable	(7,849)		19,229
Loss on disposal or impairment of property, plant and equipment, and right-of-use assets		8,800		1,599
Loss on disposal or impairment of property, plant and equipment						Loss on disposal or impairment of property, plant and equipment	131		2,138
Deferred income taxes	Deferred income taxes	4,362		(4,338)		Deferred income taxes	4,577		3,802
Stock-based compensation	Stock-based compensation	7,712		8,781		Stock-based compensation	4,874		3,675
Changes in operating assets and liabilities:	Changes in operating assets and liabilities:					Changes in operating assets and liabilities:
Accounts receivable	Accounts receivable	244,112		171,777		Accounts receivable	117,818		150,687
Inventories		(202,646)		(232,117)
Inventories, net						Inventories, net	25,117		23,510
Prepaid expenses and other current assets	Prepaid expenses and other current assets	(3,199)		(21,815)		Prepaid expenses and other current assets	(11,150)		(11,922)
Other assets	Other assets	(14,596)		(4,830)		Other assets	51		(5,873)
Accounts payable	Accounts payable	3,397		41,469		Accounts payable	(41,194)		(100,402)
Accrued liabilities	Accrued liabilities	(89,323)		(75,360)		Accrued liabilities	(27,253)		(77,861)
Income taxes payable	Income taxes payable	(12,633)		(13,967)		Income taxes payable	(19,291)		(9,429)
Operating lease assets and liabilities	Operating lease assets and liabilities	(26,264)		(27,068)		Operating lease assets and liabilities	(21,273)		(16,807)
Other liabilities	Other liabilities	4,757		5,919		Other liabilities	(18)		(1,200)
Net cash provided by (used in) operating activities		(37,276)		2,597
Net cash provided by operating activities						Net cash provided by operating activities	110,899		12,754
Cash flows from investing activities:	Cash flows from investing activities:					Cash flows from investing activities:
Purchases of short-term investments	Purchases of short-term investments	(35,045)		(181,257)		Purchases of short-term investments	0		(35,044)
Sales and maturities of short-term investments	Sales and maturities of short-term investments	36,631		308,501		Sales and maturities of short-term investments	1,054		1,631
Capital expenditures	Capital expenditures	(20,959)		(50,800)		Capital expenditures	(3,896)		(9,452)

Net cash provided by (used in) investing activities		(19,373)		76,444
Net cash used in investing activities						Net cash used in investing activities	(2,842)		(42,865)
Cash flows from financing activities:	Cash flows from financing activities:					Cash flows from financing activities:
Proceeds from credit facilities	Proceeds from credit facilities	375,759		23,208		Proceeds from credit facilities	7,753		175,719
Repayments on credit facilities	Repayments on credit facilities	(373,390)		(23,208)		Repayments on credit facilities	(7,532)		(1,054)
Payment of line of credit issuance fees		(1,674)		—

Proceeds from issuance of common stock related to stock-based compensation	Proceeds from issuance of common stock related to stock-based compensation	1,987		11,286		Proceeds from issuance of common stock related to stock-based compensation	13,772		1,096
Tax payments related to stock-based compensation	Tax payments related to stock-based compensation	(4,304)		(5,589)		Tax payments related to stock-based compensation	(5,358)		(4,207)

Repurchase of common stock	Repurchase of common stock	(132,889)		(100,293)		Repurchase of common stock	(11,223)		(132,889)

Purchase of non-controlling interest		—		(17,880)

Cash dividends paid	Cash dividends paid	(17,195)		(32,686)		Cash dividends paid	(17,285)		(17,195)

Net cash used in financing activities		(151,706)		(145,162)
Net cash provided by (used in) financing activities						Net cash provided by (used in) financing activities	(19,873)		21,470
Net effect of exchange rate changes on cash	Net effect of exchange rate changes on cash	(2,861)		476		Net effect of exchange rate changes on cash	(5,268)		(6,260)
Net decrease in cash and cash equivalents		(211,216)		(65,645)
Net increase (decrease) in cash and cash equivalents						Net increase (decrease) in cash and cash equivalents	82,916		(14,901)
Cash and cash equivalents, beginning of period	Cash and cash equivalents, beginning of period	686,009		451,795		Cash and cash equivalents, beginning of period	790,725		686,009
Cash and cash equivalents, end of period	Cash and cash equivalents, end of period	$	474,793	$	386,150	Cash and cash equivalents, end of period	$	873,641	$	671,108
Supplemental disclosures of cash flow information:	Supplemental disclosures of cash flow information:					Supplemental disclosures of cash flow information:
Cash paid during the period for income taxes		$	13,294	$	66,604

Supplemental disclosures of non-cash investing and financing activities:
Cash paid during the year for income taxes						Cash paid during the year for income taxes	$	37,534	$	19,953
Supplemental disclosures of non-cash investing and financing activities:						Supplemental disclosures of non-cash investing and financing activities:
Property, plant and equipment acquired through increase in liabilities	Property, plant and equipment acquired through increase in liabilities	$	2,414	$	9,524	Property, plant and equipment acquired through increase in liabilities	$	2,832	$	2,503

See accompanying notes to condensed consolidated financial ~~statements.~~statements

Table of Contents

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)


		Three Months Ended June 30, 2020																													Three Months Ended March 31, 2021
(in thousands, except per share amounts)	(in thousands, except per share amounts)	Common Stock							Retained Earnings		Accumulated Other Comprehensive Loss			Total			(in thousands, except per share amounts)		Common Stock									Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
			Shares Outstanding			Amount												Retained Earnings				Accumulated Other Comprehensive Income (Loss)													Total
BALANCE, MARCH 31, 2020		66,116		$	565		$	1,704,000						$	(7,974)											$	1,696,591
Net loss		—		—			(50,707)		—		(50,707)
Other comprehensive income (loss):
BALANCE, DECEMBER 31, 2020													BALANCE, DECEMBER 31, 2020			66,252				$	20,165			$	1,811,800				$	806		$	1,832,771
Net income													Net income			—			—				55,900					—			55,900
Other comprehensive loss:													Other comprehensive loss:

Unrealized holding losses on derivative transactions, net		—		—			—		(4,862)		(4,862)
Unrealized gains on derivative transactions, net													Unrealized gains on derivative transactions, net			—			—				—					8,563			8,563
Foreign currency translation adjustment, net	Foreign currency translation adjustment, net	—		—			—		6,976		6,976		Foreign currency translation adjustment, net			—			—				—					(13,204)			(13,204)

Cash dividends ($0.26 per share)													Cash dividends ($0.26 per share)			—			—				(17,285)					—			(17,285)
Issuance of common stock related to stock-based compensation, net	Issuance of common stock related to stock-based compensation, net	32		794			—		—		794		Issuance of common stock related to stock-based compensation, net			314			8,414				—					—			8,414
Stock-based compensation expense	Stock-based compensation expense	—		4,037			—		—		4,037		Stock-based compensation expense			—			4,874				—					—			4,874
Repurchase of common stock													Repurchase of common stock			(109)			(11,223)				—					—			(11,223)
BALANCE, MARCH 31, 2021													BALANCE, MARCH 31, 2021			66,457			$	22,230			$	1,850,415				$	(3,835)		$	1,868,810

BALANCE, JUNE 30, 2020		66,148		$	5,396		$	1,653,293	$	(5,860)	$	1,652,829
																Three Months Ended March 31, 2020
(in thousands, except per share amounts)													(in thousands, except per share amounts)			Common Stock							Retained Earnings					Accumulated Other Comprehensive Income (Loss)			Total
																Shares Outstanding			Amount
BALANCE, DECEMBER 31, 2019													BALANCE, DECEMBER 31, 2019			67,561			$	4,937			$	1,848,935				$	(4,425)		$	1,849,447
Net income													Net income			—			—				213					—			213
Other comprehensive loss:													Other comprehensive loss:

Unrealized gains on derivative transactions, net													Unrealized gains on derivative transactions, net			—			—				—					11,525			11,525
Foreign currency translation adjustment, net													Foreign currency translation adjustment, net			—			—				—					(15,074)			(15,074)
Cash dividends ($0.26 per share)													Cash dividends ($0.26 per share)			—			—				(17,195)					—			(17,195)
Issuance of common stock related to stock-based compensation, net													Issuance of common stock related to stock-based compensation, net			112			(3,111)				—					—			(3,111)
Stock-based compensation expense													Stock-based compensation expense			—			3,675				—					—			3,675
Repurchase of common stock													Repurchase of common stock			(1,557)			(4,936)				(127,953)					—			(132,889)
BALANCE, MARCH 31, 2020													BALANCE, MARCH 31, 2020			66,116			$	565			$	1,704,000				$	(7,974)		$	1,696,591

Three Months Ended June 30, 2019
(in thousands, except per share amounts) Common Stock Retained Earnings Accumulated Other Comprehensive Loss Total
Shares
Outstanding
Amount
BALANCE, MARCH 31, 2019 68,346 $ 94 $ 1,723,873 $ (3,318) $ 1,720,649
Net income — — 23,029 — 23,029
Other comprehensive income (loss):
Unrealized holding losses on derivative transactions, net — — — (1,881) (1,881)
Foreign currency translation adjustment, net — — — 3,901 3,901
Cash dividends ($0.24 per share) — — (16,268) — (16,268)
Issuance of common stock related to stock-based compensation, net 76 2,550 — — 2,550
Stock-based compensation expense — 4,566 — — 4,566
Repurchase of common stock (836) (7,110) (74,242) — (81,352)
BALANCE, JUNE 30, 2019 67,586 $ 100 $ 1,656,392 $ (1,298) $ 1,655,194

See accompanying notes to condensed consolidated financial ~~statements.~~statements

~~Table of Contents~~

~~COLUMBIA SPORTSWEAR COMPANY~~

~~CONDENSED CONSOLIDATED STATEMENTS OF EQUITY~~

~~(Unaudited)~~

Six months ended June 30, 2020
Common Stock Retained Earnings Accumulated Other Comprehensive Loss Total
Shares
Outstanding
Amount
BALANCE, DECEMBER 31, 2019 67,561 $ 4,937 $ 1,848,935 $ (4,425) $ 1,849,447
Net loss — — (50,494) — (50,494)
Other comprehensive income (loss):
Unrealized holding gains on derivative transactions, net — — — 6,663 6,663
Foreign currency translation adjustment, net — — — (8,098) (8,098)
Cash dividends ($0.26 per share) — — (17,195) — (17,195)
Issuance of common stock related to stock-based compensation, net 144 (2,317) — — (2,317)
Stock-based compensation expense — 7,712 — — 7,712
Repurchase of common stock (1,557) (4,936) (127,953) — (132,889)
BALANCE, JUNE 30, 2020 66,148 $ 5,396 $ 1,653,293 $ (5,860) $ 1,652,829

Six Months Ended June 30, 2019
Columbia Sportswear Company Shareholders' Equity
Common Stock Retained Earnings Accumulated Other Comprehensive Loss Non-Controlling Interest Total
Shares
Outstanding
Amount
BALANCE, DECEMBER 31, 2018 68,246 $ — $ 1,677,920 $ (4,063) $ 16,456 $ 1,690,313
Net income — — 97,206 — — 97,206
Purchase of non-controlling interest — — — (99) (16,456) (16,555)
Other comprehensive income (loss):
Unrealized holding gains on available-for-sale securities, net — — — 56 — 56
Unrealized holding losses on derivative transactions, net — — — (548) — (548)
Foreign currency translation adjustment, net — — — 3,356 — 3,356
Cash dividends ($0.48 per share) — — (32,686) — — (32,686)
Issuance of common stock related to stock-based compensation, net 372 5,697 — — — 5,697
Stock-based compensation expense — 8,781 — — — 8,781
Repurchase of common stock (1,032) (14,378) (86,048) — — (100,426)
BALANCE, JUNE 30, 2019 67,586 $ 100 $ 1,656,392 $ (1,298) $ — $ 1,655,194

~~See accompanying notes to condensed consolidated financial statements.~~

Table of Contents

COLUMBIA SPORTSWEAR COMPANY

INDEX TO NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE

PAGE

Note 1

Basis of Presentation and Organization

Note 2

Revenues

108

Note 3

Intangible Assets, Net

119

Note 4

Short-Term Borrowings and Credit Lines

129

Note 5

Income Taxes

139

Note 6

~~Product Warranty~~

~~Note 7~~

Commitments and Contingencies

1310

Note 7

Shareholders' Equity

Note 8

~~Shareholders' Equity~~Stock-Based Compensation

1310

Note 9

~~Stock-Based Compensation~~Earnings Per Share

1410

Note 10

~~Earnings~~Accumulated Other Comprehensive Income (Loss) ~~Per Share~~

1411

Note 11

~~Accumulated Other Comprehensive Loss~~Segment Information

1512

Note 12

~~Segment Information~~

~~Note 13~~

Financial Instruments and Risk Management

1712

Note 1413

Fair Value Measures

1914

~~Note 15~~

~~Subsequent Event~~

Table of Contents

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~(Unaudited)~~

NOTE 1—BASIS OF PRESENTATION AND ORGANIZATION

The accompanying unaudited condensed consolidated financial statements have been prepared by the management of Columbia Sportswear Company (together with its wholly owned subsidiaries, the "Company") and, in the opinion of management, include all normal recurring material adjustments necessary to present fairly the Company's financial position as of ~~June 30, 2020,~~March 31, 2021, December 31, ~~2019~~2020 and ~~June 30, 2019,~~March 31, 2020, and the results of operations ~~for the three and six months ended June 30, 2020 and 2019,~~ and cash flows for the ~~six~~three months ended ~~June 30, 2020~~March 31, 2021 and ~~2019.~~2020. The December 31, ~~2019~~2020 financial information was derived from the Company's audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020. A significant part of the Company's business is of a seasonal nature; therefore, results of operations for the three ~~and six~~ months ended ~~June 30, 2020~~March 31, 2021 are not necessarily indicative of results to be expected for other quarterly periods or for the full year.

Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The Company, however, believes that the disclosures contained in this report comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Columbia Sportswear Company and its wholly owned subsidiaries. ~~All significant intercompany~~Intercompany balances and transactions have been eliminated in consolidation.

Estimates and Assumptions

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates and assumptions. Some of the more significant estimates relate to revenue ~~recognition,~~recognition; allowance for uncollectible accounts ~~receivable,~~receivable; obsolescence reserves for excess, close-out and slow moving ~~inventory, product warranty,~~inventory; impairment of long-lived assets, intangible assets and ~~goodwill,~~goodwill; and income ~~taxes, and stock-based compensation.~~

~~COVID-19~~

A novel strain of coronavirus ("COVID-19") was first identified in China in December 2019 and a global pandemic of respiratory disease caused by COVID-19 was declared by the World Health Organization in March 2020.

The current environment of uncertainty significantly affected the June 30, 2020 estimates for allowance for uncollectible accounts receivable and excess, close-out and slow-moving inventory. These estimates involve assumptions about future events. The allowance for uncollectible accounts receivable includes assumptions about the future financial condition of the Company's customers and their ability to make required payments. The provision for excess, close-out and slow moving inventory includes assumptions about future demand for the Company’s products and the Company's ability to sell them at a profit.

As a result of lower consumer demand related to the COVID-19 pandemic, the Company tested certain retail locations and their respective lease right-of-use assets for impairment. In the second quarter of 2020, impairment charges of $6.6 million for certain underperforming retail stores were recognized in ~~Selling, general and administrative expenses~~ ("~~SG&A expense")~~. Additionally, as a result of the COVID-19 pandemic and a significant decline in projected net sales, the prAna brand's trademark and goodwill were tested for impairment as of March 31, 2020. While no impairment was indicated during the first quarter 2020 tests, the degree by which the fair value of the prAna reporting unit and trademark exceeded their respective carrying values declined from the Company's 2019 impairment test. After performing both qualitative and quantitative analysis, including review of future long-term revenue and cash flow assumptions, the Company concluded a triggering event requiring measurement of the prAna brand's trademark and goodwill for impairment as of June 30, 2020 did not occur. If, due to the current level of uncertainty relating to the COVID-19 pandemic, the prAna brand's actual or projected future performance deteriorates from the projections considered in the Company's first quarter 2020 impairment tests, it is possible that an impairment charge would be required.

As of June 30, 2020, the Company had received or negotiated lease concessions related to the effects of COVID-19 on a portion of its stores. The Company expects continued lease concession negotiations to be finalized during the second half of 2020. In April 2020, the Financial Accounting Standards Board (“FASB”) issued a Staff Q&A, Topic 842 and 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic. The FASB staff indicated that it would be acceptable for entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how they would be accounted for as though enforceable rights and obligations for those concessions existed in the original contract. The Company elected to account for lease concessions related to the

~~Table of Contents~~

~~Index to Notes to Consolidated Financial Statements~~

~~COLUMBIA SPORTSWEAR COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)~~

~~(Unaudited)~~

effects of the COVID-19 pandemic in accordance with the Staff Q&A. For concessions that provide a deferral of payments with no substantive changes to the consideration in the original contract, the Company continues to recognize expense during the deferral period. For concessions in the form of lease abatements, the reduced lease payments are accounted for as reductions to variable lease expense. In the periods presented, lease concessions reducing variable lease expense were not material.

In response to COVID-19, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law in the United States on March 27, 2020. The CARES Act provides payroll tax credits for employee retention, deferral of payroll tax payments and several income tax provision modifications. Additionally, there are other subsidies and incentives provided by foreign governments in the countries where the Company conducts business. In the second quarter of 2020, $4.3 million of government subsidies and incentives reduced ~~SG&A expense~~.taxes.

Recently Adopted Accounting Pronouncements

Effective January 1, ~~2020,~~2021, the Company adopted Accounting Standards Update ("ASU") No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) issued by the FASB in August 2018, which clarifies certain aspects of accounting for implementation costs incurred in a cloud computing arrangement ("CCA") that is a service contract. Under the ASU, an entity would expense costs incurred in the preliminary-project and post-implementation-operation stages. The entity would also capitalize certain costs incurred during the application-development stage, as well as certain costs related to enhancements. The ASU does not change the accounting for the service component of a CCA. The Company adopted the standard using the prospective method and anticipates ~~an increase in cloud-specific implementation assets as specific cloud initiatives are executed by the Company. These assets will generally be included in~~ ~~Other non-current assets~~ in the Condensed Consolidated Balance Sheets and will amortize over their assessed useful lives or the term of the underlying cloud computing hosting contract, whichever is shorter. Upon the adoption of the standard, there was no immediate impact to the Company's financial position, results of operations or cash flows.

Effective January 1, 2020, the Company adopted ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment issued by the FASB in January 2017, which simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. Under this guidance, if the carrying amount of a reporting unit exceeds its estimated fair value, an impairment charge shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The impact of the new standard will depend on the specific facts and circumstances of future individual goodwill impairments, if any.

Effective January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments issued by the FASB in June 2016, as well as the clarifying amendments subsequently issued. The pronouncement changes the impairment model for most financial assets and will require the use of an "expected loss" model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. Upon adoption of the standard, there was no immediate impact to the Company's financial position, results of operations or cash flows. On an ongoing basis, the Company will contemplate forward-looking economic conditions in recording lifetime expected credit losses for the Company’s financial assets measured at cost, such as the Company’s trade receivables and certain short-term investments.

~~Summary of Significant Accounting Policies~~

Except as disclosed below, there have been no significant changes to the Company's significant accounting policies as described in Note 2 in the Company's Annual Report on Form 10-K for the year ended December 31, 2019.

~~The following significant accounting policies have been updated since the Company’s 2019 Annual Report on Form 10-K as a result of the adoption of ASU No.2016-13 and ASU No. 2018-15, respectively:~~

~~Accounts Receivable~~

Accounts receivable have been reduced by an allowance for doubtful accounts. The Company maintains the allowance for estimated losses resulting from the inability of the Company's customers to make required payments. ~~The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable~~ considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. ~~Write-off activity and recoveries for the periods presented were not material.~~

~~Cloud Computing Arrangements~~

~~The Company’s CCAs primarily relate to various enterprise resource planning systems, as well as other supporting systems. These assets are generally included in~~ ~~Other non-current assets~~ in the Condensed Consolidated Balance Sheets and amortize on a straight-line basis over their assessed useful lives or the term of the underlying cloud computing hosting contract, whichever is shorter. As of June 30, 2020, one asset was placed in-service with a useful life of two years. As of June 30, 2020, the Company had a balance of capitalized implementation

~~Table of Contents~~

~~Index to Notes to Consolidated Financial Statements~~

~~COLUMBIA SPORTSWEAR COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)~~

~~(Unaudited)~~

~~costs of $19.2 million and associated accumulated amortization of $0.1 million. Changes in these assets are recorded in~~ ~~Other Assets~~ ~~within operating activitiesin the Condensed Consolidated Statements of Cash Flows.~~

~~Recent Accounting Pronouncements Not Yet Adopted~~

~~In December 2019, the FASB issued ASU~~ No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which, among other things, removes specific exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods, as well as targeted impacts to the accounting for taxes under hybrid tax regimes. ~~This standard is effective beginning in the first quarter of 2021 on~~At adoption, there was not a ~~prospective basis, with early adoption permitted. The Company is currently evaluating the~~material impact ~~this accounting standard will have on~~to the Company's financial position, results of operations or cash flows.

Recent Accounting Pronouncements Not Yet Adopted

~~NOTE 2—REVENUES~~

~~Disaggregated Revenue~~

~~As disclosed below in Note 12, the Company has 4 geographic reportable segments: United States ("U.S."), Latin America and Asia Pacific ("LAAP"), Europe, Middle East and Africa ("EMEA"), and Canada.~~

~~The following tables disaggregate the Company's operating segment~~ ~~Net sales~~ ~~by product category and sales channel, which the Company believes provide a meaningful depiction of how the nature, timing, and uncertainty of~~ ~~Net sales~~ ~~are affected by economic factors:~~

Three Months Ended June 30, 2020
(in thousands) U.S. LAAP EMEA Canada Total
Product category net sales
Apparel, Accessories and Equipment $ 151,456 $ 47,876 $ 39,010 $ 5,575 $ 243,917
Footwear 31,789 19,434 19,281 2,190 72,694
Total $ 183,245 $ 67,310 $ 58,291 $ 7,765 $ 316,611
Sales channel net sales
Wholesale $ 73,334 $ 31,219 $ 53,086 $ 2,264 $ 159,903
Direct-to-consumer 109,911 36,091 5,205 5,501 156,708
Total $ 183,245 $ 67,310 $ 58,291 $ 7,765 $ 316,611

Three Months Ended June 30, 2019
(in thousands) U.S. LAAP EMEA Canada Total
Product category net sales
Apparel, Accessories and Equipment $ 277,604 $ 74,096 $ 66,409 $ 14,153 $ 432,262
Footwear 37,923 27,518 25,118 3,389 93,948
Total $ 315,527 $ 101,614 $ 91,527 $ 17,542 $ 526,210
Sales channel net sales
Wholesale $ 151,714 $ 51,171 $ 83,521 $ 9,884 $ 296,290
Direct-to-consumer 163,813 50,443 8,006 7,658 229,920
Total $ 315,527 $ 101,614 $ 91,527 $ 17,542 $ 526,210

None.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

~~(Unaudited)~~

Six months ended June 30, 2020
(in thousands) U.S. LAAP EMEA Canada Total
Product category net sales
Apparel, Accessories and Equipment $ 461,133 $ 123,789 $ 78,940 $ 32,224 $ 696,086
Footwear 97,980 46,172 35,199 9,402 188,753
Total $ 559,113 $ 169,961 $ 114,139 $ 41,626 $ 884,839
Sales channel net sales
Wholesale $ 276,202 $ 88,593 $ 95,342 $ 25,726 $ 485,863
Direct-to-consumer 282,911 81,368 18,797 15,900 398,976
Total $ 559,113 $ 169,961 $ 114,139 $ 41,626 $ 884,839
NOTE 2—REVENUES

Disaggregated Revenue

As disclosed in Note 11, the Company has 4 geographic reportable segments: United States ("U.S."), Latin America and Asia Pacific ("LAAP"), Europe, Middle East and Africa ("EMEA") and Canada.

The following tables disaggregate the Company's operating segment Net sales by product category and channel, which the Company believes provides a meaningful depiction of how the nature, timing, and uncertainty of Net sales are affected by economic factors:


	Three Months Ended March 31, 2021
(in thousands)	U.S.		LAAP		EMEA		Canada		Total
Product category net sales
Apparel, Accessories and Equipment	$	317,349	$	78,723	$	46,296	$	26,542	$	468,910
Footwear	91,313		33,254		24,469		7,660		156,696
Total	$	408,662	$	111,977	$	70,765	$	34,202	$	625,606
Channel net sales
Wholesale	$	200,881	$	55,550	$	57,764	$	21,218	$	335,413
Direct-to-consumer	207,781		56,427		13,001		12,984		290,193
Total	$	408,662	$	111,977	$	70,765	$	34,202	$	625,606


		Six Months Ended June 30, 2019																			Three Months Ended March 31, 2020
(in thousands)	(in thousands)	U.S.		LAAP		EMEA		Canada		Total		(in thousands)	U.S.		LAAP		EMEA		Canada		Total
Product category net sales	Product category net sales											Product category net sales
Apparel, Accessories and Equipment	Apparel, Accessories and Equipment	$	622,309	$	174,433	$	117,110	$	44,377	$	958,229	Apparel, Accessories and Equipment	$	309,677	$	75,913	$	39,930	$	26,649	$	452,169
Footwear	Footwear	105,442		60,040		45,765		11,342		222,589		Footwear	66,191		26,738		15,918		7,212		116,059
Total	Total	$	727,751	$	234,473	$	162,875	$	55,719	$	1,180,818	Total	$	375,868	$	102,651	$	55,848	$	33,861	$	568,228
Sales channel net sales
Channel net sales												Channel net sales
Wholesale	Wholesale	$	360,283	$	122,149	$	139,890	$	37,126	$	659,448	Wholesale	$	202,868	$	57,374	$	42,256	$	23,462	$	325,960
Direct-to-consumer	Direct-to-consumer	367,468		112,324		22,985		18,593		521,370		Direct-to-consumer	173,000		45,277		13,592		10,399		242,268
Total	Total	$	727,751	$	234,473	$	162,875	$	55,719	$	1,180,818	Total	$	375,868	$	102,651	$	55,848	$	33,861	$	568,228

Performance Obligations

For the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and 2020, ~~and 2019,~~ Net sales recognized from performance obligations related to prior periods were not material. Net sales expected to be recognized in any future period related to remaining performance obligations isare not material.

Contract Balances

As of ~~June 30, 2020,~~March 31, 2021, December 31, ~~2019~~2020 and ~~June 30, 2019,~~March 31, 2020, contract liabilities included in Accrued liabilities on the Condensed Consolidated Balance Sheets, which consisted of obligations associated with the Company's gift card and customer loyalty programs, were not material.

~~NOTE 3—INTANGIBLE ASSETS, NET~~

~~Intangible assets, net~~ ~~consisted of the following:~~

(in thousands) June 30,
2020 December 31,
2019 June 30,
2019
Intangible assets subject to amortization:
Patents and purchased technology $ 14,198 $ 14,198 $ 14,198
Customer relationships 23,000 23,000 23,000
Gross carrying amount 37,198 37,198 37,198
Accumulated amortization:
Patents and purchased technology (13,976) (13,311) (12,646)
Customer relationships (16,538) (15,713) (14,888)
Total accumulated amortization (30,514) (29,024) (27,534)
Net carrying amount 6,684 8,174 9,664
Intangible assets not subject to amortization 115,421 115,421 115,421
Intangible assets, net $ 122,105 $ 123,595 $ 125,085

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COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

~~(Unaudited)~~NOTE 3—INTANGIBLE ASSETS, NET

Intangible assets, net consisted of the following:


(in thousands)	March 31, 2021		December 31, 2020		March 31, 2020
Intangible assets subject to amortization:
Patents and purchased technology	$	14,198	$	14,198	14,198
Customer relationships	23,000		23,000		23,000
Gross carrying amount	37,198		37,198		37,198
Accumulated amortization:
Patents and purchased technology	(14,198)		(14,198)		(13,644)
Customer relationships	(17,775)		(17,363)		(16,125)
Accumulated amortization	(31,973)		(31,561)		(29,769)
Net carrying amount	5,225		5,637		7,429
Intangible assets not subject to amortization	97,921		97,921		115,421
Intangible assets, net	$	103,146	$	103,558	$	122,850

Amortization expense for intangible assets subject to amortization was $0.4 million and $0.7 million for ~~both~~ the three months ended ~~June 30,~~March 31, 2021 and 2020, ~~and 2019, and was $1.5 million for both~~respectively.

The following table presents the ~~six months ended June 30, 2020 and 2019.~~

~~Annual~~estimated annual amortization expense ~~is estimated to be as follows~~ for the years ~~2020~~2021 through ~~2024:~~2025:


(in thousands)	(in thousands)			(in thousands)
2020		$	2,537
2021	2021	1,650		2021	$	1,650
2022	2022	1,650		2022	1,650
2023	2023	1,650		2023	1,650
2024	2024	688		2024	688
2025				2025	0

NOTE 4—SHORT-TERM BORROWINGS AND CREDIT LINES

AtExcept as disclosed below, there have been no significant changes to the ~~beginning of~~Company's short-term borrowings and credit lines as described in Note 7 in the ~~2020,~~Company's Annual Report on Form 10-K for the Company had an unsecured, committed revolving line of credit agreement, maturing on August 1, 2023 with monthly variable commitments available for funding that averaged $50.0 million over the course of a calendar year. In March 2020, the Company entered into a first amendment to its unsecured, committed revolving line of credit agreement to remove the seasonality within the commitment levels and provide $125.0 million in committed borrowing availability throughyear ended December 31, 2020. Effective April 15, 2020, the Company entered into a second amended and restated credit agreement (the “restated credit agreement”) which amended and restated the committed revolving line of credit agreement. The restated credit agreement provides for (i) a secured, committed revolving line of credit, maturing on August 1, 2023 with a commitment available for funding of $125.0 million (the "Revolving A Loan"), (ii) a secured, committed revolving line of credit, maturing April 13, 2021, with a commitment available for funding of $400.0 million (the "Revolving B Loan", together with the Revolving A Loan, the "Revolving Loans"), and (iii) an uncommitted $100.0 million incremental facility, which may be added to the Revolving B Loan if it is executed on, upon request by the Company to the administrative agent. Advances under the Revolving Loans can be either LIBOR loans or base rate loans. LIBOR loans bear interest on the outstanding principal amount thereof for each interest period at a rate per annum equal to LIBOR (subject to a LIBOR floor) plus a margin ranging from 2.00% to 2.75% (the "LIBOR Margin"). Base rate loans bear interest on the outstanding principal amount thereof at a rate per annum equal to the LIBOR Margin plus the greater of (i) daily reset one month LIBOR or (ii) in the case of Revolving A Loans, the LIBOR floor; provided that if the lenders are unable to price loans based on LIBOR, base rate loans will bear interest at an interest rate per annum equal to a margin ranging from 1% to 1.75% plus the higher of (A) the rate of interest most recently announced by the administrative agent as its prime rate or (B) the federal funds rate plus 1.50%. During the second quarter, the LIBOR floor in the restated agreement was 0.75% for advances under the Revolving A Loan and 1.00% for advances under the Revolving B Loan. The restated credit agreement requires the Company to comply with certain financial covenants, and provides for certain restrictions on dividend payments and stock repurchases. During the second quarter, the obligations of the Company under the restated credit agreement are secured by all assets of the Company and Columbia Brands USA, LLC, except for intellectual property, real property, equity interests in foreign subsidiaries and certain other exclusions. If the Company is in default, it is required to comply with certain restrictions on dividend payments and stock repurchases. At June 30, 2020, the Company was in compliance with all associated covenants, and there was no balance outstanding under these lines and facility. As disclosed in Note 15, in July 2020, the Company amended its restated credit agreement.

The Company’s Canadian subsidiary has available an unsecured and uncommitted line of credit, which is payable on demand, guaranteed by the Company, and provides for borrowings up to a maximum of CAD$30.0 million (approximately US$22.0 million) at June 30, 2020. The revolving line accrues interest at the Canadian Prime rate for CAD overdraft borrowings or Bankers' Acceptance rate plus 150 basis points for Bankers' Acceptance loans. As of June 30, 2020, there was 0 balance outstanding under this line of credit.

At the beginning of ~~2020,~~2021 the Company's ~~European~~Japanese subsidiary had two separate unsecured and uncommitted lines of credit, guaranteed by the Company, and provides for borrowings up to a maximum of €25.8 million and €5.0 million. In June 2020, the Company's European subsidiary entered into an agreement which replaced the €5.0 million line with a €4.4 million secured, committed line of credit, and a €0.6 million unsecured and uncommitted line of credit. The combined available borrowings of the three lines was approximately US$34.6 million at June 30, 2020. Borrowings under the €25.8 million line accrues interest at a base rate of 185 basis points plus 275 basis points. Borrowings under the €0.6 million and €4.4 million lines accrue interest at 75 basis points. As of June 30, 2020, there was 0 balance outstanding under these facilities.

~~The Company’s Japanese subsidiary has available~~ two separate unsecured and uncommitted overdraft facilities guaranteed by the Company providing for ~~borrowing~~borrowings up to a maximum of ¥1.5 billion and US$7.0 ~~million~~million. In March 2021, the Company's Japanese subsidiary entered into an agreement to establish an unsecured and ~~¥300.0 million (combined~~uncommitted overdraft facility providing for borrowings up to a maximum of ¥400.0 million. The combined available borrowings of the three lines was approximately US$~~9.8 million)~~24.2 million at ~~June 30, 2020.~~March 31, 2021. Borrowings under ~~these~~the ¥1.5 billion and ¥400.0 million overdraft facilities accrue interest at ~~275.0 basis points and~~ the Tokyo Interbank Offered Rate plus ~~0.50~~50 basis points ~~respectively.~~and borrowings under the US$7.0 million overdraft facility accrue interest at 150 basis points. As of ~~June 30,~~March 31, 2021, there was no balance outstanding under these facilities.

NOTE 5—INCOME TAXES

For the three months ended March 31, 2021 and 2020, the ~~outstanding balance under~~Company's effective income tax rates were 20.7% and 86.4%, respectively. The decrease in the ~~¥300.0 million facility~~effective income tax rate for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 was ~~¥300.0 million (approximately US~~primarily driven by a change in the mix of book income or loss among jurisdictions and the recording of a foreign jurisdiction valuation allowance during the prior year period.

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~~(Unaudited)~~

~~$2.8 million), which was accruing interest at a rate of 0.54% per annum. As of June 30, 2020, there was 0 balance was outstanding under the US$7.0 million facility.~~

The Company’s Korea subsidiary has available an unsecured and uncommitted overdraft facility guaranteed by the Company providing for borrowing up to a maximum of US$20.0 million at June 30, 2020. Borrowings under the overdraft facility accrue interest at the Korea three month CD rate plus 275.0 basis points. As of June 30, 2020, there was 0 balance outstanding under this overdraft facility.

The Company’s Chinese subsidiary has available an unsecured and uncommitted overdraft and clean advance facility guaranteed by the Company providing for borrowings of advances or overdrafts up to a maximum of US$20.0 million at June 30, 2020. Borrowings under the facility accrue interest on advances of RMB based on the People’s Bank of China (“PBOC”) base rate plus 0.85%, advances of USD based on LIBOR plus 1.8% per annum or overdrafts of RMB based on 110% of the PBOC rate. As of June 30, 2020, there was 0 balance outstanding under this facility.

~~NOTE 5—INCOME TAXES~~

For the three months ended June 30, 2020 and 2019, the Company's effective income tax rates were 27.7% and negative 15.3%, respectively. For the six months ended June 30, 2020 and 2019, the effective income tax rates were 26.4% and 13.0%, respectively. The increases in the effective income tax rate for both the three and six months ended June 30, 2020 compared to the three and six months ended June 30, 2019 were driven primarily by the change in mix of book income or loss among jurisdictions, and the recognition in 2019 of a one-time tax benefit related to the passage of a Swiss tax reform package.

Income tax expense, deferred tax assets and related liabilities are based on estimates. In the three months ended March 31, 2020, a $1.5 million valuation allowance adjustment was recorded related to the expected portion of tax benefits that would not be realized in certain foreign jurisdictions based on available evidence. The likelihood of realizing the benefits of the deferred tax assets was assessed as of June 30, 2020 and no additional valuation allowance adjustment was recorded. The Company will continue to monitor the realizability of deferred tax assets, particularly in certain foreign jurisdictions where the economic impacts of the COVID-19 pandemic may result in net operating losses. The ability to recover these deferred tax assets depends on several factors, including results of operations and the ability to project future taxable income in those jurisdictions. If it is determined that some additional portion of the tax benefits will not be realized, valuation allowance would be recorded, which would increase income tax expense. Total deferred tax assets as of June 30, 2020 were approximately $73.4 million, of which approximately $7.5 million related to foreign jurisdictions where the Company expects to incur significant net operating losses in the near term, although the risks of failing to realize these benefits vary across jurisdictions.

NOTE 6—~~PRODUCT WARRANTY~~

Some of the Company's products carry life-time or limited warranty provisions for defects in quality and workmanship. A warranty reserve is established at the time of sale to cover estimated costs based on the Company's history of warranty repairs and replacements and is recorded in ~~Cost of sales~~ ~~in the Condensed Consolidated Statements of Operations. The warranty reserve is included in~~ ~~Accrued liabilities~~ ~~in the Condensed Consolidated Balance Sheets.~~

~~A reconciliation of product warranties is as follows:~~

Three Months Ended June 30, Six Months Ended June 30,
(in thousands) 2020 2019 2020 2019
Balance at beginning of period $ 13,122 $ 13,178 $ 14,466 $ 13,186
Provision for warranty claims 593 703 905 2,495
Warranty claims (517) (735) (1,885) (2,459)
Other 136 40 (152) (36)
Balance at end of period $ 13,334 $ 13,186 $ 13,334 $ 13,186

~~NOTE 7—~~COMMITMENTS AND CONTINGENCIES

The Company is ~~a party to~~involved in litigation and various legal ~~claims, actions~~matters arising in the normal course of business, including matters related to employment, retail, intellectual property, contractual agreements, lease agreements, and ~~complaints from time~~various regulatory compliance activities. Management has considered facts related to ~~time. Although~~legal and regulatory matters and opinions of counsel handling these matters, and does not believe the ultimate resolution of ~~legal~~these proceedings ~~cannot be predicted with certainty, management believes that disposition of these matters~~ will ~~not~~ have a material adverse effect on the Company's ~~condensed consolidated~~ financial ~~statements.~~position, results of operations or cash flows.

NOTE 8—7—SHAREHOLDERS' EQUITY

Since the inception of the Company's stock repurchase plan in 2004 through ~~June 30, 2020,~~March 31, 2021, the Company's Board of Directors has authorized the ~~purchase~~repurchase of ~~$1.1~~$1.5 billion of the Company's common stock. ~~As of June 30, 2020, the Company had repurchased 26.8 million~~

~~Table of Contents~~

~~Index to Notes to Consolidated Financial Statements~~

~~COLUMBIA SPORTSWEAR COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)~~

~~(Unaudited)~~

~~shares under this program at an aggregate purchase price of $1,017.8 million. Shares repurchased generally settle subsequent to the trade date.~~ Shares of the Company's common stock may be ~~repurchased~~purchased in the open market or through privately negotiated transactions, subject to market ~~conditions.~~conditions, and generally settle subsequent to the trade date. The repurchase program does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time.

Under this program as of March 31, 2021, the Company had repurchased 26.9 million shares at an aggregate purchase price of $1,029.0 million and has $471.0 million remaining available. During the three months ended March 31, ~~2020,~~2021, the Company ~~repurchased~~purchased an aggregate of ~~$132.9~~$11.2 million of the Company's common stock under the stock repurchase plan authorized by the Company's Board of Directors and a pre-established written trading plan. In mid-March 2020, to reduce capital outflows and preserve capital, the Company suspended share repurchases and the Company's Board of Directors suspended the quarterly dividend.this program.

NOTE 9—8—STOCK-BASED COMPENSATION

~~At its Annual Meeting held on June 3, 2020, the Company’s shareholders approved the Company’s 2020~~The Company's Stock Incentive Plan (the “2020 Plan”), and the 2020 Plan became effective on that date following such approval. The 2020 Plan replaced the Company’s 1997 Stock Incentive Plan (the "Prior Plan”) and no new awards will be granted under the Prior Plan. The terms and conditions of the awards granted under the Prior Plan will remain in effect with respect to awards granted under the Prior Plan. The Company has reserved 3 million shares of common stock for issuance under the 2020 Plan, plus up to an aggregate of 1.5 million shares of the Company’s common stock that were previously authorized and available for issuance under the Prior Plan. The 2020 Plan allows for grants of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, and other stock-based or cash-based awards.

~~Stock-based compensation expense~~Stock-Based Compensation Expense

Stock-based compensation expense consisted of the following:


		Three Months Ended June 30,						Six Months Ended June 30,							Three Months Ended March 31,
(in thousands)	(in thousands)	2020		2019		2020		2019		(in thousands)	2021		2020
Stock options	Stock options	$	1,755	$	1,602	$	3,459	$	3,091	Stock options	$	1,910	$	1,704
Restricted stock units	Restricted stock units	2,282		2,964		4,253		5,690		Restricted stock units	2,964		1,971
Total	Total	$	4,037	$	4,566	$	7,712	$	8,781	Total	$	4,874	$	3,675

Stock Options

During the ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, the Company granted a total of ~~660,071~~496,609 stock options at a weighted average grant date fair value of ~~$14.67.~~$17.26 per share. As of ~~June 30, 2020,~~March 31, 2021, unrecognized costs related to outstanding stock options totaled ~~$15.1~~$17.0 million, before any related tax benefit. As of ~~June 30, 2020,~~March 31, 2021, unrecognized costs related to stock options are expected to be recognized over a weighted average period of ~~2.83~~2.92 years.

Restricted Stock Units

During the ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, the Company granted ~~209,708~~150,912 restricted stock units at ~~an estimated~~a weighted average grant date fair value of ~~$79.43.~~$95.39 per share. As of ~~June 30, 2020,~~March 31, 2021, unrecognized costs related to outstanding restricted stock units totaled ~~$24.5~~$27.7 million, before any related tax benefit. As of ~~June 30, 2020,~~March 31, 2021, unrecognized costs related to restricted stock units are expected to be recognized over a weighted average period of ~~2.59~~2.74 years.

NOTE ~~10—~~9—EARNINGS ~~(LOSS)~~ PER SHARE

Earnings ~~(loss)~~ per share ("EPS") is presented on both a basic and diluted basis. Basic EPS is based on the weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur if outstanding securities or other contracts to issue common stock were exercised or converted into common stock.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

~~(Unaudited)~~

A reconciliation of the common shares used in the denominator for computing basic and diluted EPS is as follows:


		Three Months Ended June 30,						Six Months Ended June 30,							Three Months Ended March 31,
(in thousands, except per share amounts)	(in thousands, except per share amounts)	2020		2019		2020		2019		(in thousands, except per share amounts)	2021		2020
Weighted average shares of common stock outstanding, used in computing basic earnings (loss) per share		66,135		67,930		66,553		68,109
Weighted average common shares outstanding, used in computing basic earnings per share										Weighted average common shares outstanding, used in computing basic earnings per share	66,363		66,970
Effect of dilutive stock options and restricted stock units	Effect of dilutive stock options and restricted stock units	—		630		—		716		Effect of dilutive stock options and restricted stock units	522		442
Weighted average shares of common stock outstanding, used in computing diluted earnings (loss) per share		66,135		68,560		66,553		68,825
Earnings (loss) per share of common stock:
Weighted average common shares outstanding, used in computing diluted earnings per share										Weighted average common shares outstanding, used in computing diluted earnings per share	66,885		67,412
Earnings per share of common stock:										Earnings per share of common stock:
Basic	Basic	$	(0.77)	$	0.34	$	(0.76)	$	1.43	Basic	$	0.84	$	0.00
Diluted	Diluted	$	(0.77)	$	0.34	$	(0.76)	$	1.41	Diluted	$	0.84	$	0.00

Stock options, service-based restricted stock units, and performance-based restricted stock ~~units~~ representing ~~2,468,516~~693,403 and ~~2,334,223~~937,523 shares of common stock for the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and 2020, respectively, were outstanding but were excluded from the computation of diluted EPS because their effect would have been anti-dilutive due to a net loss in the period or because the shares were subject to performance conditions that had not been met.

Stock options, service-based restricted stock units, and performance-based restricted stock units representing 431,712 and 356,167 shares of common stock for the three and six months ended June 30, 2019, respectively, were outstanding but were excluded from the computation of diluted EPS because their effect would have been anti-dilutive under the treasury stock method or because the shares were subject to performance conditions that had not been met.

NOTE ~~11—~~10—ACCUMULATED OTHER COMPREHENSIVE ~~LOSS~~INCOME (LOSS)

Accumulated other comprehensive ~~loss~~ income (loss)on the ~~Company's~~ Condensed Consolidated Balance Sheets is net of applicable taxes, and consists of unrealized holding gains and losses on available-for-sale securities, unrealized gains and losses on certain derivative transactions and foreign currency translation adjustments.

The following table sets forth the changes in Accumulated other comprehensive ~~loss~~income (loss) for the three months ended ~~June 30, 2020:~~March 31, 2021:

(in thousands) Unrealized losses on available-for-sale securities Unrealized holding gains (losses) on derivative transactions Foreign currency translation adjustments Total
Balance at March 31, 2020 $ (4) $ 21,007 $ (28,977) $ (7,974)
Other comprehensive income (loss) before reclassifications — (3,347) 6,976 3,629
Amounts reclassified from accumulated other comprehensive loss⁽¹⁾
— (1,515) — (1,515)
Net other comprehensive income (loss) during the period — (4,862) 6,976 2,114
Balance at June 30, 2020 $ (4) $ 16,145 $ (22,001) $ (5,860)


(in thousands)	Unrealized holding gains (losses) on derivative transactions		Foreign currency translation adjustments		Total
Balance at December 31, 2020	$	(9,369)	$	10,175	$	806
Other comprehensive income (loss) before reclassifications	9,279		(13,204)		(3,925)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(716)		0		(716)
Net other comprehensive income (loss) during the year	8,563		(13,204)		(4,641)
Balance at March 31, 2021	$	(806)	$	(3,029)	$	(3,835)

⁽¹⁾Amounts reclassified are recorded in Net sales, Cost of sales, or Other non-operating income (expense), neton the Condensed Consolidated Statements of Operations. Refer to Note 1312 for further information regarding ~~classifications.~~reclassifications.

The following table sets forth the changes in Accumulated other comprehensive ~~loss~~income (loss) for the three months ended ~~June 30, 2019:~~March 31, 2020:

(in thousands) Unrealized losses on available-for-sale securities Unrealized holding gains (losses) on derivative transactions Foreign currency translation adjustments Total
Balance at March 31, 2019 $ (4) $ 13,198 $ (16,512) $ (3,318)
Other comprehensive income (loss) before reclassifications — (464) 3,901 3,437
Amounts reclassified from accumulated other comprehensive loss⁽¹⁾
— (1,417) — (1,417)
Net other comprehensive income (loss) during the period — (1,881) 3,901 2,020
Balance at June 30, 2019 $ (4) $ 11,317 $ (12,611) $ (1,298)


(in thousands)	Unrealized gains (losses) on available for sale securities		Unrealized holding gains (losses) on derivative transactions		Foreign currency translation adjustments		Total
Balance at December 31, 2019	$	(4)	$	9,482	$	(13,903)	$	(4,425)
Other comprehensive income (loss) before reclassifications	0		14,362		(15,074)		(712)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	0		(2,837)		0		(2,837)
Net other comprehensive income (loss) during the year	0		11,525		(15,074)		(3,549)
Balance at March 31, 2020	$	(4)	$	21,007	$	(28,977)	$	(7,974)

(1) Amounts reclassified are recorded in Net sales,Cost of sales, or Other non-operating income (expense), net on the Condensed Consolidated Statements of Operations. Refer to Note 12 for further information regarding reclassifications.

1511

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Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

~~(Unaudited)~~

⁽¹⁾~~Amounts reclassified are recorded in~~ ~~Net Sales~~ or ~~Cost of sales~~ ~~on the Condensed Consolidated Statements of Operations. Refer to Note 13 for further information regarding classifications.~~

~~The following table sets forth the changes in~~ ~~Accumulated other comprehensive loss~~ ~~for the six months ended June 30, 2020:~~

(in thousands) Unrealized gains (losses) on available-for-sale securities Unrealized holding gains (losses) on derivative transactions Foreign currency translation adjustments Total
Balance at December 31, 2019 $ (4) $ 9,482 $ (13,903) $ (4,425)
Other comprehensive income (loss) before reclassifications — 11,015 (8,098) 2,917
Amounts reclassified from accumulated other comprehensive loss⁽¹⁾
— (4,352) — (4,352)
Net other comprehensive income (loss) during the period — 6,663 (8,098) (1,435)
Balance at June 30, 2020 $ (4) $ 16,145 $ (22,001) $ (5,860)

⁽¹⁾~~Amounts reclassified are recorded in~~ ~~Net Sales, Cost of sales, or Other non-operating income~~ ~~on the Condensed Consolidated Statements of Operations. Refer to Note 13 for further information regarding classifications.~~

~~The following table sets forth the changes in~~ ~~Accumulated other comprehensive loss~~ ~~for the six months ended June 30, 2019:~~

(in thousands) Unrealized gains (losses) on available-for-sale securities Unrealized holding gains (losses) on derivative transactions Foreign currency translation adjustments Total
Balance at December 31, 2018 $ (60) $ 11,964 $ (15,967) $ (4,063)
Other comprehensive income before reclassifications 56 2,804 3,356 6,216
Amounts reclassified from accumulated other comprehensive loss⁽¹⁾
— (3,352) — (3,352)
Net other comprehensive income (loss) during the period 56 (548) 3,356 2,864
Purchase of non-controlling interest — (99) — (99)
Balance at June 30, 2019 $ (4) $ 11,317 $ (12,611) $ (1,298)

NOTE ~~12—~~11—SEGMENT INFORMATION

The Company has 4 reportable geographic segments: U.S., LAAP, EMEA, and Canada, which are reflective of the Company's internal organization, management and oversight structure. Each geographic segment operates predominantly in one industry: the design, development, marketing, and distribution of outdoor, active and everyday lifestyle apparel, footwear, accessories, and equipment products. Intersegment net sales and intersegment profits, which are recorded at a negotiated mark-up and eliminated in consolidation, are not material. Unallocated corporate expenses consist of expenses incurred by centrally-managed departments, including global information ~~systems,~~services, finance, human resources and legal, as well as executive compensation, unallocated benefit program expense, and other miscellaneous costs.

~~Table of Contents~~The following table presents financial information for the Company's reportable segments:

~~Index to Notes to Consolidated Financial Statements~~

~~COLUMBIA SPORTSWEAR COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)~~

~~(Unaudited)~~


	Three Months Ended March 31,
(in thousands)	2021		2020
Net sales to unrelated entities:
U.S.	$	408,662	$	375,868
LAAP	111,977		102,651
EMEA	70,765		55,848
Canada	34,202		33,861
	$	625,606	$	568,228
Segment income (loss) from operations
U.S.	$	99,661	$	40,032
LAAP	9,718		6,138
EMEA	10,062		(66)
Canada	6,228		4,151
Total segment income from operations	125,669		50,255
Unallocated corporate expenses	(55,189)		(52,242)
Interest income, net	278		1,813
Other non-operating income (expense), net	(304)		1,738
Income before income tax	$	70,454	$	1,564

~~The geographic distribution of the Company's~~ ~~Net sales~~ ~~and~~ ~~Income (loss) from operations~~ ~~in the Condensed Consolidated Statements of Operations are summarized in the following table for the three and six months ended June 30, 2020 and 2019.~~

Three Months Ended June 30, Six Months Ended June 30,
(in thousands) 2020 2019 2020 2019
Net sales to unrelated entities:
U.S. $ 183,245 $ 315,527 $ 559,113 $ 727,751
LAAP 67,310 101,614 169,961 234,473
EMEA 58,291 91,527 114,139 162,875
Canada 7,765 17,542 41,626 55,719
$ 316,611 $ 526,210 $ 884,839 $ 1,180,818
Segment income (loss) from operations:
U.S. $ (18,155) $ 46,453 $ 21,877 $ 142,176
LAAP (2,184) 9,991 3,954 36,741
EMEA 139 9,557 73 18,743
Canada (8,776) (2,618) (4,625) 3,393
Total segment income (loss) from operations (28,976) 63,383 21,279 201,053
Unallocated corporate expenses (41,324) (47,018) (93,566) (96,730)
Interest income (expense), net (805) 2,571 1,008 5,971
Other non-operating income, net 935 1,032 2,673 1,478
Income (loss) before income tax $ (70,170) $ 19,968 $ (68,606) $ 111,772

Concentrations

The Company had ~~two customers~~one customer that accounted for ~~13.3%~~10.2% and ~~12.9%, respectively,~~14.3% of Accounts receivable, net ~~of allowance~~ on the Condensed Consolidated Balance Sheets as of ~~June 30, 2020. The Company had one~~March 31, 2021, and December 31, 2020, respectively. No single customer ~~that~~ accounted for ~~13.9%~~10% or more of Accounts receivable, net ~~of allowance~~ ~~as of December 31, 2019. The Company had one customer that accounted for 10.7% of~~ ~~Accounts receivable, net of allowance~~ as of ~~June 30, 2019.~~March 31, 2020. No single customer accounted for 10% or more of Net sales in the Condensed Consolidated ~~Statements~~Statement of Operations for the three ~~and six~~ months ended ~~June 30, 2020~~March 31, 2021 or ~~2019.~~2020.

NOTE ~~13—~~12—FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

In the normal course of business, the Company's financial position, results of operations and cash flows are routinely subject to a variety of risks. These risks include risks associated with financial markets, primarily currency exchange rate risk and, to a lesser extent, interest rate risk and equity market risk. The Company regularly assesses these risks and has established policies and business practices designed to mitigate them. The Company does not engage in speculative trading in any financial market.

The Company actively manages the risk of changes in functional currency equivalent cash flows resulting from anticipated non-functional currency denominated purchases and sales. Subsidiaries that use European euros, Canadian dollars, Japanese yen, Chinese renminbi, or Korean won as their functional currency are primarily exposed to changes in functional currency equivalent cash flows from anticipated United States dollar inventory purchases. Subsidiaries that use United States dollars and euros as their functional currency also have non-functional currency denominated sales for which the Company hedges the Canadian dollar and ~~Great~~ British pound. The Company manages these risks by using currency forward contracts formally designated and effective as cash flow hedges. Hedge effectiveness is generally determined by evaluating the ability of a hedging instrument's cumulative change in fair value to offset the cumulative change in the present value of expected cash flows on the underlying exposures. For forward contracts, ~~prior to June 2019, the time value components ("forward points") were excluded from the determination of hedge effectiveness and included in current period~~ ~~Cost of sales~~ ~~for hedges of anticipated United States dollar inventory purchases and in~~ ~~Net sales~~ ~~for hedges of anticipated non-functional currency denominated sales on a straight-line basis over the life of the contract. Effective June 2019, the~~ forward points are included in the fair value of the cash flow hedge on a prospective basis. These costs or benefits ~~will be~~are included in

Table of Contents

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Accumulated other comprehensive ~~loss~~income (loss) until the underlying hedge transaction is recognized in either Net sales or Cost of sales, at which time, the forward points will also be recognized as a component of Net income ~~(loss)~~.

The Company also uses currency forward contracts not formally designated as hedges to manage the consolidated currency exchange rate risk associated with the remeasurement of non-functional currency denominated monetary assets and liabilities by subsidiaries that use United States dollars, euros, Canadian dollars, yen, won, or renminbi as their functional currency. Non-functional currency denominated

~~Table of Contents~~

~~Index to Notes to Consolidated Financial Statements~~

~~COLUMBIA SPORTSWEAR COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)~~

~~(Unaudited)~~

monetary assets and liabilities consist primarily of cash and cash equivalents, short-term investments, receivables, payables, deferred income taxes, and intercompany loans. The gains and losses generated on these currency forward contracts not formally designated as hedges are expected to be largely offset in Other non-operating income (expense), net by the gains and losses generated from the remeasurement of the non-functional currency denominated monetary assets and liabilities.

The following table presents the gross notional amount of outstanding derivative instruments:


(in thousands)	(in thousands)	June 30, 2020		December 31, 2019		June 30, 2019		(in thousands)	March 31, 2021		December 31, 2020		March 31, 2020
Derivative instruments designated as cash flow hedges:	Derivative instruments designated as cash flow hedges:							Derivative instruments designated as cash flow hedges:
Currency forward contracts	Currency forward contracts	$	381,599	$	471,822	$	353,975	Currency forward contracts	$	484,176	$	417,707	$	458,823

Derivative instruments not designated as cash flow hedges:	Derivative instruments not designated as cash flow hedges:							Derivative instruments not designated as cash flow hedges:
Currency forward contracts	Currency forward contracts	223,500		214,086		359,179		Currency forward contracts	219,961		326,280		205,030

At ~~June 30, 2020, $14.9~~March 31, 2021, $3.2 million of deferred net ~~gains~~losses on both outstanding and matured derivatives recorded in O~~ther~~Other comprehensive ~~income~~ lossare expected to be reclassified to Net income ~~(loss)~~ during the next twelve months as a result of underlying hedged transactions also being recorded in Net ~~sales~~sales or Cost of salesin the Condensed Consolidated Statements of Operations. Actual amounts ultimately reclassified to Net ~~sales~~sales or Cost of salesin the Condensed Consolidated Statements of Comprehensive Income (Loss) are dependent on United States dollar exchange rates in effect against the euro, pound sterling, renminbi, Canadian dollar, and yen when outstanding derivative contracts mature.

At ~~June 30, 2020,~~March 31, 2021, the Company's derivative contracts had a remaining maturity of less than ~~approximately~~ four years. The maximum net exposure to any single counterparty, which is generally limited to the aggregate unrealized gain of all contracts with that counterparty, was ~~$6.0~~$2.7 million at ~~June 30, 2020.~~March 31, 2021. All of the Company's derivative counterparties have credit ratings that are investment grade or higher. The Company is a party to master netting arrangements that contain features that allow counterparties to ~~net settle amounts arising from multiple separate derivative transactions or~~ net settle amounts arising from multiple separate derivative transactions or net settle in the case of certain triggering events such as a bankruptcy or major default of one of the counterparties to the transaction. The Company has not pledged assets or posted collateral as a requirement for entering into or maintaining derivative positions.

The following table presents the balance sheet classification and fair value of derivative instruments:


(in thousands)	(in thousands)	Balance Sheet Classification	June 30, 2020		December 31, 2019		June 30, 2019		(in thousands)	Balance Sheet Classification	March 31, 2021		December 31, 2020		March 31, 2020
Derivative instruments designated as cash flow hedges:	Derivative instruments designated as cash flow hedges:								Derivative instruments designated as cash flow hedges:
Derivative instruments in asset positions:	Derivative instruments in asset positions:								Derivative instruments in asset positions:
Currency forward contracts	Currency forward contracts	Prepaid expenses and other current assets	$	10,839	$	11,855	$	11,392	Currency forward contracts	Prepaid expenses and other current assets	$	2,438	$	947	$	18,945

Currency forward contracts	Currency forward contracts	Other non-current assets	6,775		4,159		6,776		Currency forward contracts	Other non-current assets	6,159		1,126		10,520
Derivative instruments in liability positions:	Derivative instruments in liability positions:								Derivative instruments in liability positions:
Currency forward contracts	Currency forward contracts	Accrued liabilities	80		1,313		170		Currency forward contracts	Accrued liabilities	4,908		7,573		231
Currency forward contracts	Currency forward contracts	Other long-term liabilities	—		768		140		Currency forward contracts	Other long-term liabilities	2,337		6,590		0
Derivative instruments not designated as cash flow hedges:	Derivative instruments not designated as cash flow hedges:								Derivative instruments not designated as cash flow hedges:
Derivative instruments in asset positions:	Derivative instruments in asset positions:								Derivative instruments in asset positions:
Currency forward contracts	Currency forward contracts	Prepaid expenses and other current assets	4,641		2,146		2,181		Currency forward contracts	Prepaid expenses and other current assets	1,759		1,650		4,449
Derivative instruments in liability positions:	Derivative instruments in liability positions:								Derivative instruments in liability positions:
Currency forward contracts	Currency forward contracts	Accrued liabilities	524		953		1,920		Currency forward contracts	Accrued liabilities	1,793		2,268		978

1813

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Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

~~(Unaudited)~~

The following table presents the statement of operations effect and classification of derivative instruments:

Statement of
Operations
Classification Three Months Ended June 30, Six Months Ended June 30,
(in thousands) 2020 2019 2020 2019
Currency Forward and Option Contracts:
Derivative instruments designated as cash flow hedges:
Gain (loss) recognized in other comprehensive income (loss), net of tax — $ (3,347) $ (464) $ 11,015 $ 2,804
Gain reclassified from accumulated other comprehensive income or loss to income for the effective portion Net sales 165 75 43 110
Gain reclassified from accumulated other comprehensive income or loss to income for the effective portion Cost of sales 1,826 925 4,621 2,121
Gain reclassified from accumulated other comprehensive income or loss to income as a result of cash flow hedge discontinuance Other non-operating income 6 — 1,117 —
Loss recognized in income for amount excluded from effectiveness testing and for the ineffective portion Net sales — (26) — (31)
Gain recognized in income for amount excluded from effectiveness testing and for the ineffective portion Cost of sales — 931 — 2,380
Derivative instruments not designated as cash flow hedges:
Gain (loss) recognized in income Other non-operating income (319) (1,137) 1,330 (574)


		Three Months Ended March 31,
(in thousands)	Statement Of Operations Classification	2021		2020
Currency Forward Contracts:
Derivative instruments designated as cash flow hedges:
Gain recognized in other comprehensive loss, net of tax	—	$	9,279	$	14,362
Gain (loss) reclassified from accumulated other comprehensive income (loss) to income for the effective portion	Net sales	100		(122)
Gain reclassified from accumulated other comprehensive income (loss) to income for the effective portion	Cost of sales	772		2,795
Gain reclassified from accumulated other comprehensive income (loss) to income as a result of cash flow hedge discontinuance	Other non-operating income (expense), net	106		1,111


Derivative instruments not designated as cash flow hedges:
Gain recognized in income	Other non-operating income (expense), net	897		1,649

~~Table of Contents~~

~~Index to Notes to Consolidated Financial Statements~~

~~COLUMBIA SPORTSWEAR COMPANY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)~~

~~(Unaudited)~~

NOTE ~~14—~~13—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 the Company would receive to sell an asset or pay 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.

The Company's assets and liabilities measured at fair value are categorized as Level 1 or Level 2 instruments. 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, that are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions.

~~Assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 were as follows:~~

(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Cash equivalents:
Money market funds $ 151,823 $ — $ — $ 151,823
Other short-term investments:
Money market funds 51 — — 51
Mutual fund shares 924 — — 924
Other current assets:
Derivative financial instruments — 15,480 — 15,480
Other non-current assets:
Money market funds 4,173 — — 4,173
Mutual fund shares 11,425 — — 11,425
Derivative financial instruments — 6,775 — 6,775
Total assets measured at fair value $ 168,396 $ 22,255 $ — $ 190,651
Liabilities:
Accrued liabilities:
Derivative financial instruments $ — $ 604 $ — $ 604
Total liabilities measured at fair value $ — $ 604 $ — $ 604

2014

Table of Contents

Index to Notes to Consolidated Financial Statements

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

~~(Unaudited)~~

Assets and liabilities measured at fair value on a recurring basis as of ~~December~~March 31, ~~2019 were~~2021 are as follows:


(in thousands)	(in thousands)	Level 1		Level 2		Level 3		Total		(in thousands)	Level 1		Level 2		Level 3		Total
Assets:	Assets:									Assets:
Cash equivalents:	Cash equivalents:									Cash equivalents:
Money market funds	Money market funds	$	288,926	$	—	$	—	$	288,926	Money market funds	$	344,886	$	0	$	0	$	344,886
United States government treasury bills	United States government treasury bills	—		34,928		—		34,928		United States government treasury bills	0		45,000		0		45,000
Commercial paper		—		33,587		—		33,587

Other short-term investments:
Short-term investments:										Short-term investments:
Money market funds										Money market funds	99		0		0		99
Mutual fund shares	Mutual fund shares	1,668		—		—		1,668		Mutual fund shares	821		0		0		821
Other current assets:	Other current assets:									Other current assets:
Derivative financial instruments	Derivative financial instruments	—		14,001		—		14,001		Derivative financial instruments	0		4,197		0		4,197
Non-current assets:	Non-current assets:									Non-current assets:
Money market funds	Money market funds	1,792		—		—		1,792		Money market funds	3,667		0		0		3,667
Mutual fund shares	Mutual fund shares	12,172		—		—		12,172		Mutual fund shares	15,376		0		0		15,376
Derivative financial instruments	Derivative financial instruments	—		4,159		—		4,159		Derivative financial instruments	0		6,159		0		6,159
Total assets measured at fair value	Total assets measured at fair value	$	304,558	$	86,675	$	—	$	391,233	Total assets measured at fair value	$	364,849	$	55,356	$	0	$	420,205
Liabilities:	Liabilities:									Liabilities:
Accrued liabilities:	Accrued liabilities:									Accrued liabilities:
Derivative financial instruments	Derivative financial instruments	$	—	$	2,266	$	—	$	2,266	Derivative financial instruments	$	0	$	6,701	$	0	$	6,701
Other long-term liabilities:	Other long-term liabilities:									Other long-term liabilities:
Derivative financial instruments	Derivative financial instruments	—		768		—		768		Derivative financial instruments	0		2,337		0		2,337
Total liabilities measured at fair value	Total liabilities measured at fair value	$	—	$	3,034	$	—	$	3,034	Total liabilities measured at fair value	$	0	$	9,038	$	0	$	9,038

~~Table of Contents~~

Critical Accounting Policies and Estimates

Management's discussion and analysis of our financial condition and results of operations are based on our unaudited condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make various estimates and judgments that affect reported amounts of assets, liabilities, sales, cost of sales, and expenses and related disclosure of contingent assets and liabilities. We believe that the estimates, assumptions and judgments involved in the accounting policies referred to in Part II, Item 7 in our Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 have the greatest potential effect on our financial statements, so we consider these to be our critical accounting policies and estimates. Because of the uncertainty inherent in these matters, actual results may differ from the estimates we use in applying these critical accounting policies. We base our ongoing estimates on historical experience and other assumptions that we believe to be reasonable in the circumstances. ~~Some of these~~Our critical accounting policies ~~affect working capital account balances, including the policy for~~relate to revenue ~~recognition,~~recognition; allowance for uncollectible accounts ~~receivable,~~receivable; obsolescence reserves for excess, close-out and ~~slow moving inventory, product warranty,~~slow-moving inventory; impairment of long-lived assets, intangible assets and ~~goodwill,~~goodwill; and income ~~taxes, and stock-based compensation.~~taxes.

Management regularly discusses with our audit committee each of our critical accounting estimates, the development and selection of these accounting estimates, and the disclosure about each estimate in this quarterly report. These discussions typically occur at our quarterly audit committee meetings and include the basis and methodology used in developing and selecting these estimates, the trends in and amounts of these estimates, specific matters affecting the amount of and changes in these estimates, and any other relevant matters related to these estimates, including significant issues concerning accounting principles and financial statement presentation.

Except as ~~described below and~~ disclosed in Note 1 in Item 1 of this quarterly report, pertaining to our adoption of new accounting pronouncements, there have been no significant changes to the Company's significant accounting policies as described in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2019.~~

~~Impairment of Long-Lived Assets, Intangible Assets and Goodwill~~

Long-lived assets, which include property, plant and equipment and intangible assets with finite lives, are amortized over their estimated useful lives and are measured for impairment only when events or circumstances indicate the carrying value may be impaired. In the second quarter of 2020, we tested certain retail locations and their respective lease right-of-use assets for impairment. See Note 1 in Item 1 of this quarterly report for impairment charges recognized in the second quarter of 2020. ~~Further declines in projected future performance or significant declines in market rents for retail spaces may adversely affect the recovery of retail locations assets.~~

Our 2019 impairment tests of goodwill and intangible assets with indefinite lives indicated that the fair value of all reporting units and intangible assets with indefinite lives exceeded their respective carry values by more than 20%, except for the prAna brand's trademark. In the prAna brand impairment analysis, the estimated fair value of its trademark exceeded its carrying value by approximately 20%. Additionally, the estimated fair value of the prAna reporting unit exceeded its carrying value by more than 30%. As a result of the COVID-19 pandemic and a significant decline in projected net sales, the prAna brand's trademark and goodwill were tested for impairment as of March 31, 2020. While no impairment was indicated during the first quarter 2020 tests, the degree by which the fair value of the prAna reporting unit and trademark exceeded their respective carrying values declined from our 2019 impairment test. After performing both qualitative and quantitative analysis, including review of future long-term revenue and cash flow assumptions, we concluded a triggering event requiring the measurement of prAna brand's trademark and goodwill for impairment as of June 30, 2020 did not occur. If, due to the current level of uncertainty relating to the COVID-19 pandemic, the prAna brand's actual or projected future performance deteriorates from the projections considered in our first quarter 2020 tests, it is possible that an impairment charge would be required.

Our impairment tests and related fair value estimates are based on a number of factors, including assumptions and estimates for projected sales, income, cash flows, discount rates, market-based multiples, remaining useful lives, and other operating performance measures. Changes in estimates or the application of alternative assumptions could produce significantly different results. These assumptions and estimates may change in the future due to changes in economic conditions, changes in our ability to meet sales and profitability objectives or changes in our business operations or strategic direction.

Recent Accounting Pronouncements

~~See "Recent Accounting Pronouncements Not Yet Adopted" in Note 1 in Item 1~~None.

Table of ~~this quarterly report.~~Contents

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has not been any material change in the market risk disclosure contained in Item 7A of our Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

~~Table of Contents~~

Item 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We have evaluated, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures ~~as of the end of the period covered by this report~~ pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")~~. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that,~~ as of the end of the period covered by this ~~report, our~~report. These disclosure controls and procedures ~~were effective in ensuring that~~require information ~~required~~ to be disclosed in our Exchange Act reports isto be (1) recorded, processed, summarized and reported in a timely manner, and (2) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer.

Based on our evaluation, we, including our Chief Executive Officer and Chief Financial Officer, have concluded that our disclosure controls and procedures were effective as ~~appropriate to allow timely decisions regarding required disclosure.~~of the end of the period covered by this quarterly report.

Changes in Internal Control ~~over~~Over Financial Reporting

There have not been any changes in our internal control over financial reporting that occurred during the quarter ended ~~June 30, 2020~~March 31, 2021 that have materially affected, or are reasonably likely to materially affect, our internal ~~controls~~control over financial reporting.

3325

Table of Contents

PART II—OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

We are involved in litigation and various legal matters arising in the normal course of business, including matters related to employment, retail, intellectual property, contractual agreements, and various regulatory compliance activities. We have considered facts related to legal and regulatory matters and opinions of counsel handling these matters and do not believe the ultimate resolution of these proceedings will have a material adverse effect on our financial ~~position,~~condition, results of operations or cash flows.

Item 1A. RISK FACTORS

In addition to the other information contained in this Quarterly Report on Form 10-Q, the following risk factors should be considered carefully in evaluating our business. Our business, financial condition, results of operations, or cash flows may be materially adversely affected by these and other risks. Please note that additional risks not presently known to us or that we currently deem immaterial may also impair our business and operations. The following risk factors include changes to and supersede the description of the risk factors associated with our business previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2019.~~2020.

CHANGES IN PRODUCT DEMAND CAN ADVERSELY AFFECT OUR FINANCIAL RESULTS

We are Subject to a Number of Risks Which May Adversely Affect Consumer and/or Wholesale Customer Demand for Our Products and Lead to a Decline in Sales and/or Earnings.

These risks include, but are not limited to:

•Volatile Economic Conditions. We are a consumer products company and are highly dependent on consumer discretionary spending. Consumer discretionary spending behavior is inherently unpredictable. Consumer demand, and related wholesale customer demand, for our products may not support our sales targets, or may decline, especially during periods of heightened economic uncertainty in our key markets.

•Highly Competitive Markets. In each of our geographic markets, we face significant competition from global and regional branded apparel, footwear, accessories, and equipment companies. Retailers who are our wholesale customers often pose a significant competitive threat by designing, marketing and distributing apparel, footwear, accessories, and equipment under their own private labels. We also experience direct competition in our DTC business from retailers that are our wholesale customers. This is true in particular in the digital marketplace, where increased consumer expectations and competitive pressure related to various aspects of our e-commerce business, including speed of product delivery, shipping charges, return privileges, and other evolving expectations are key factors, and certain of our wholesale customers may be able to offer faster shipping and lower prices than our own DTC e-commerce channel.

•Consumer Preferences and Fashion/Product Trends. Changes in consumer preferences, consumer interest in outdoor activities, and fashion/product trends may have a material adverse effect on our business. We also face risks because our success depends on our and our customers' abilities to anticipate consumer preferences and our ability to respond to changes in a timely manner. Product development and/or production lead times for many of our products may make it more difficult for us to respond rapidly to new or changing fashion/product trends or consumer preferences.

•Brand Images. Our brands have wide recognition, and our success has been due in large part to our ability to maintain, enhance and protect our brand image and reputation and our consumers' and customers' connection to our brands. Our continued success depends in part on our ability to adapt to a rapidly changing media environment, including our increasing reliance on social media and online dissemination of advertising campaigns. In addition, consumer and customer sentiment could be shaped by our sustainability policies and related design, sourcing and operations decisions.

•Weather Conditions, Including Global Climate Change Trends. Our sales are adversely affected by unseasonable weather conditions. A significant portion of our DTC sales is dependent in part on the weather and our DTC sales growth is likely to be adversely impacted or may even decline in years in which weather conditions do not stimulate demand for our products. Unseasonable weather also impacts future sales to our wholesale customers, who may hold inventory into subsequent seasons in response to unseasonable weather. To the extent global weather patterns trend warmer, consumer and customer demand for our products may be negatively affected. Our results may be negatively impacted if management is not able to adjust expenses in a timely manner in response to unfavorable weather conditions and the resulting impact on consumer and customer demand.

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•Shifts in Retail Traffic Patterns. Shifts in consumer purchasing patterns, including the growth of e-commerce and large one-stop digital marketplaces, e-commerce off-price retailing and online comparison shopping, in our key markets may have an adverse effect on our DTC operations and the financial health of certain of our wholesale customers, some of whom may reduce their brick and mortar store fleet, file for protection under bankruptcy laws, restructure, or cease operations. We face increased risk of order reduction and cancellation when dealing with financially ailing wholesale customers. We also extend credit to our wholesale customers based on an assessment of the wholesale customer's financial condition, generally without requiring collateral. We may

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choose to limit our credit risk by reducing our level of business with wholesale customers experiencing financial difficulties and may not be able to replace those revenues with other customers or through our DTC businesses within a reasonable period or at all.

•Innovation. To distinguish our products in the marketplace and achieve commercial success, we rely on product innovations, including new or exclusive technologies, inventive and appealing design or other differentiating features. If we fail to introduce innovative products that appeal to consumers and customers, we could suffer reputational damage to our brands and demand for our products could decline.

Certain of the above risks may be or have been exacerbated by the COVID-19 pandemic, see “An Outbreak of Disease or Similar Public Health Threat, or Fear of Such an Event, Such as the COVID-19 Pandemic, Could Have, and in the Case of the COVID-19 Pandemic Has Had and is Expected to Continue to Have, an Adverse Impact on Our Business, Operating Results and Financial Condition.”

Our Orders from Wholesale Customers are Subject to Cancellation, Which Could Lead to a Decline in Sales or Gross Profit, Write-downs of Excess Inventory, Increased Discounts or Extended Credit Terms to Our Wholesale Customers.

We do not have long-term contracts with any of our wholesale customers. We do have contracts with our independent international distributors; although these contracts may have annual purchase minimums that must be met in order to retain distribution rights, the distributors are not otherwise obligated to purchase products from us. Sales to our wholesale customers (other than our international distributors) are generally on an order-by-order basis and are subject to rights of cancellation and rescheduling prior to shipment of orders. We consider the timing of delivery dates in our wholesale customer orders when we forecast our sales and earnings for future periods. If any of our major wholesale customers experience a significant downturn in business or fail to remain committed to our products or brands, or if we are unable to deliver products to our wholesale customer in the agreed upon manner, these customers could postpone, reduce, cancel, or discontinue purchases from us, including after we have begun production on any order.

Our Inability to Accurately Predict Consumer and/or Customer Demand for Our Products Could Lead to a Build-up of Inventory or a Lack of Inventory and Affect Our Gross Margin.

We have implemented key strategic initiatives designed to improve the efficiency of our supply chain, such as spreading out the production of our products over time, which may lead to the build-up of inventory well in advance of the selling seasons for such products. Additionally, we place orders for our products with our contract manufacturers in advance of the related selling season and, as a result, are vulnerable to changes in consumer and/or customer demand for our products. Therefore, we must accurately forecast consumer and/or customer demand for our products well in advance of the selling season. We are subject to numerous risks relating to consumer and/or customer demand (see “We are Subject to a Number of Risks Which May Adversely Affect Consumer and/or Customer Demand for our Products and Lead to a Decline in Sales and/or Earnings” and “Our Orders from Wholesale Customers are Subject to Cancellation, Which Could Lead to a Decline in Sales or Gross Profit, Write-downs of Excess Inventory, Increased Discounts or Extended Credit Terms to ~~our~~Our Wholesale Customers” for additional information). Our ability to accurately predict consumer and/or customer demand well in advance of the selling season for our products is impacted by these risks, as well as our reliance on manual processes and judgments that are subject to human error.

Our failure to accurately forecast consumer and/or customer demand could result in inventory levels in excess of demand, which may cause inventory write-downs and/or the sale of excess inventory at discounted prices through our owned outlet stores or third-party liquidation channels and could have a material adverse effect on our brand image and gross margin. In addition, we may experience additional costs relating to the storage of excess inventory.

Conversely, if we underestimate consumer and/or customer demand for our products or if our contract manufacturers are unable to supply products when we need them, we may experience inventory shortages, which may prevent us from fulfilling product orders, delay shipments of product, negatively affect our wholesale customer and consumer relationships, result in increased costs to expedite production and delivery, and diminish our ability to build brand loyalty.

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WE ARE SUBJECT TO VARIOUS RISKS IN OUR SUPPLY CHAIN.

Our Reliance on Contract Manufacturers, Including Our Ability to Enter Into Purchase Order Commitments with Them and Maintain Quality Standards of Our Products and Standards of Manufacturing Processes at Contract Manufacturers, May Result in Lost Sales and Impact our Gross Margin and Results of Operations.

Our products are manufactured by contract manufacturers worldwide, primarily in the Asia Pacific region. Although we enter into purchase order commitments with these contract manufacturers each season, we generally do not maintain long-term manufacturing commitments with them, and various factors could interfere with our ability to source our products. Without long-term commitments, there is no assurance that we will be able to secure adequate or timely production capacity ~~or favorable pricing if growth or product demand differs from our forecasts. Contract manufacturers may fail to perform as expected, or~~and our competitors may obtain production capacities that effectively limit or eliminate the availability of ~~these resources~~our contract manufacturers. If we are unable to ~~us.~~obtain necessary production capacities, we may be unable to meet consumer demand, resulting in lost sales.

In addition, contract manufacturers may fail to perform as expected. If a contract manufacturer fails to ship orders in a timely manner, or to meet our standards or if we are unable to obtain necessary capacities, due to any number of reasons, including government issued orders that may have the effect of restricting or limiting production, we could experience supply disruptions that ~~would hinder our ability to satisfy demand through our wholesale and DTC businesses, and we may miss~~result in missed delivery deadlines, ~~or incur additional costs,~~ which may cause our customers to cancel their orders, refuse to accept deliveries or demand a reduction in purchase ~~price.~~price or cause us to incur additional freight costs.

Reliance on contract manufacturers also creates quality control risks. Contract manufacturers may need to use sub-contracted manufacturers to fulfill our orders, which could result in compromised quality of our products. A failure in our quality control program, or a failure of our contract manufacturers or their subcontractors to meet our quality control standards, may result in diminished product quality, which in turn

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could result in increased order cancellations, price concessions, product returns, decreased consumer and customer demand for our products, non-compliance with our product standards or regulatory requirements, or product recalls or other regulatory actions.

We impose standards of manufacturing practices on our contract manufacturers for the benefit of workers and require compliance with our restricted substances list and product safety and other applicable laws, including environmental, health and safety and forced labor laws. We also require that our contract manufacturers impose these practices, standards and laws on their subcontractors. If a contract manufacturer or subcontractor violates labor or other laws or engages in practices that are not generally accepted as safe or ethical, the manufacturer or subcontractor or its respective employees may suffer serious injury due to industrial accidents or may suffer disruptions to its operations due to work stoppages or employee protests, and we may experience production disruptions, lost sales or significant negative publicity that could result in long-term damage to our reputation. In some circumstances, parties may assert that we are liable for our contract manufacturers' or subcontractors' labor and operational practices, which could have a material adverse effect on our brand image, results of operations and our financial condition.

Volatility in the Availability and Prices for Commodities and Raw Materials We Use in Our Products Could Have a Material Adverse Effect on Our Costs, Gross Margins and Profitability.

Our products are derived from raw materials that are subject to the prices in the market. If there is a volatility in the availability and prices for commodities and raw materials we use in our products and we are unable to offset such rising costs by pricing actions or efficiency improvements, we could experience pressure on our gross margins and profitability.

For Certain Materials We Depend on a Limited Number of Suppliers, Which May Cause Increased Costs or Production Delays.

Some of the materials that are used in our products may be available from only one source or a very limited number of sources. For example, some specialty fabrics are manufactured to our specification by one source or a few sources, and a single vendor supplies the majority of the zippers used in our products. As a result, from time to time, we may have difficulty satisfying our material requirements. Although we believe that we can identify and qualify additional contract manufacturers to produce or supply these materials or alternative materials as necessary, there are no guarantees that additional contract manufacturers will be available. In addition, depending on the timing, any changes in sources or materials may result in increased costs or production delays.

Our Success Depends on Our and Third-Party Distribution Facilities, and Other Third-Party ~~Logistics~~ Providers.

Our ability to meet consumer and customer expectations, manage inventory, complete sales, and achieve our objectives for operating efficiencies depends on the proper operation of our existing distribution facilities, as well as the facilities of ~~third-party logistics companies,~~third-parties, the development or expansion of additional distribution capabilities and services, and the timely performance of services by third-parties, including those involved in shipping products to and from our distribution facilities and facilities operated by third-parties. The majority of our products are manufactured outside of our principal sales markets, which requires these products to be consolidated and transported by ~~third-parties,~~third-party logistic companies, sometimes over large geographical distances. ~~One~~A small number of third-party logistics ~~provider~~providers currently ~~consolidates~~consolidate, deconsolidate and/or transload almost all ~~of our products and another third-party logistics provider is the sole source for deconsolidation and transloading certain~~ of our products. While we believe that such a consolidation in these providers is in our best interest overall, any disruption in the operations of these providers or changes to the costs they charge, due to capacity constraints or volatile fuel prices could materially impact our sales and profitability. A prolonged disruption in

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the operations of these providers could also require us to seek alternative distribution arrangements, which may not be available on attractive terms and could lead to delays in distribution of products, either of which could have a significant and material adverse effect on our business, results of operations and financial condition. In addition, the inability of our third-party logistics providers to move products over large geographical distances in a timely manner due to disruptions or limitations at ports or borders or at third-party providers on which they rely (including air-cargo, ocean-cargo and trucking companies) could hinder our ability to satisfy demand through our wholesale and DTC businesses, and we may miss delivery deadlines or incur additional costs, which may cause our customers to cancel their orders, refuse to accept deliveries or demand a reduction in purchase price. In addition, increases in distribution costs, including but not limited to trucking and freight costs, could adversely affect our costs.

We receive our products from such third-party logistics providers at our owned distribution centers in the United States, Canada and France. The fixed costs associated with owning, operating and maintaining such distribution centers during a period of economic weakness or declining sales can result in lower operating efficiencies, financial deleverage and potential impairment in the recorded value of distribution assets. ~~In addition, increases in distribution costs, including but not limited to trucking and freight costs, could adversely affect our costs.~~

We also receive and distribute our products through third-party ~~logistics provider~~ operated distribution facilities internationally and domestically. We depend on these ~~third-party logistics providers~~third-parties to manage the operation of their distribution facilities as necessary to meet our business needs. If the ~~third-party logistics providers~~third-parties fail to manage these responsibilities, our international and domestic distribution operations could face significant disruptions.

OUR INVESTMENT IN STRATEGIC PRIORITIES EXPOSES US TO CERTAIN RISKS

We May Be Unable to Execute Our Strategic Priorities, Which Could Limit Our Ability to Invest in and Grow Our Business.

Our strategic priorities are to drive brand awareness and sales growth through increased, focused demand creation investments, enhance consumer experience and digital capabilities in all of our channels and geographies, expand and improve global DTC operations with supporting processes and systems and invest in our people and optimize our organization across our portfolio of brands.

To implement our strategic priorities, we must continue to, among other things, modify and fund various aspects of our business, effectively prioritize our initiatives and execute effective change management. These efforts, coupled with a continuous focus on expense discipline, may place strain on internal resources, and we may have operating difficulties as a result.

Our strategic priorities also generally involve increased expenditures, which could cause our profitability or operating margin to decline if we are unable to offset our increased spending with increased sales or gross profit or comparable reductions in other operating costs. This could result in a decision to delay, modify, or terminate certain initiatives related to our strategic priorities.

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Initiatives to Upgrade Our Business Processes and Information Technology Systems to ~~Support~~Optimize Our ~~Strategic Priorities~~Operational and Financial Performance Involve Many Risks Which Could Result in, Among Other Things, Business Interruptions, Higher Costs and Lost Profits.

We regularly implement business process improvement and information technology initiatives intended to optimize our operational and financial performance. ~~Our current initiatives include investment in our business processes and information technology systems to support the expansion and improvement of our DTC operations initiatives.~~ Transitioning to these new or upgraded processes and systems requires significant capital investments and personnel resources. Implementation is also highly dependent on the coordination of numerous employees, contractors and software and system providers. The interdependence of these ~~solutions~~processes and systems is a significant risk to the successful completion and continued refinement of these initiatives, and the failure of any aspect could have a material adverse effect on the functionality of our overall ~~information technology systems.~~business. We may also experience difficulties in implementing or operating our new or upgraded business processes or information technology systems, including, but not limited to, ineffective or inefficient operations, significant system failures, system outages, delayed implementation and loss of system availability, which could lead to increased implementation and/or operational costs, loss or corruption of data, delayed shipments, excess inventory and interruptions of ~~DTC~~ operations resulting in lost sales and/or profits.

We May Not Realize Returns on Our Fixed Cost Investments in Our DTC Business Operations.

One of our strategic priorities is to expand and improve our global DTC business operations. Accordingly, we continue to make significant investments in our e-commerce platforms, ~~and brick and mortar retail locations, including the investment in~~ our global retail ~~platform,~~platforms and information technology system upgrades (See “Initiatives to Upgrade Our Business Processes and Information Technology Systems to ~~Support~~Optimize Our ~~Strategic Priorities~~Operational and Financial Performance Involve Many Risks Which Could Result in, Among Other Things, Business Interruptions, Higher Costs and Lost Profits”)~~, and investing in inventory and personnel.~~. Since many of the costs of our DTC operations are fixed, we may be unable to reduce expenses in order to avoid losses or negative cash flows if we have insufficient sales, including as a result of restrictions on operations. We may not be able to exit DTC brick and mortar locations and related leases at all or without significant cost or loss, renegotiate the terms thereof, or effectively manage the profitability of our existing brick and mortar stores. In addition, obtaining real estate and effectively renewing real estate

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leases for our DTC brick and mortar operations is subject to the real estate market and we may not be able to secure adequate new locations or successfully renew leases for existing ~~locations, or effectively manage the profitability of our existing brick and mortar stores.~~locations.

WE ARE SUBJECT TO CERTAIN INFORMATION TECHNOLOGY RISKS

We Rely on Information Technology Systems, including Third-Party Cloud-based Solutions, and Any Failure of These Systems May Result in Disruptions or Outages in Our E-Commerce and In-Store Retail Platforms, Loss of Processing Capabilities, and/or Loss of Data, Any of Which May Have a Material Adverse Effect on Our Financial Condition, Results of Operations or Cash Flow.

Our reputation and ability to attract, retain and serve consumers and customers is dependent upon the reliable performance of our underlying technical infrastructure and external service providers, including third-party cloud-based solutions. These systems are vulnerable to damage or interruption and we have experienced interruptions in the past. We rely on cloud-based solutions furnished by third-parties primarily to allocate resources, pay vendors, collect from customers, process transactions, develop demand and supply plans, manage product design, production, transportation, and distribution, forecast and report operating results, meet regulatory requirements and administer employee payroll and benefits, among other functions. In addition, our DTC operations, both in-store and online, rely on cloud-based solutions to process transactions. We have also designed a significant portion of our software and computer systems to utilize data processing and storage capabilities from third-party cloud solution providers. Both our on-premises and cloud-based infrastructure may be susceptible to outages due to any number of reasons, including, human error, fire, floods, power loss, telecommunications failures, terrorist attacks and similar events. Despite the implementation of security measures that we believe to be reasonable, both our on-premises and our cloud-based infrastructure may also be vulnerable to hacking, computer viruses, the installation of malware and similar disruptions either by third-parties or employees, which may result in outages. We do not have redundancy for all of our systems and our disaster recovery planning may not account for all eventualities. If we or our existing third-party cloud-based solution providers experience interruptions in service regularly or for a prolonged basis, or other similar issues, our business would be seriously harmed and, in some instances, our consumers and customers may not be able to purchase our products, which could significantly and negatively affect our sales. Additionally, our existing cloud-based solution providers have broad discretion to change and interpret their terms of service and other policies with respect to us, and they may take actions beyond our control that could harm our business. We also may not be able to control the quality of the systems and services we receive from our third-party cloud-based solution providers. Any transition of the cloud-based solutions currently provided to different cloud providers would be difficult to implement and will cause us to incur significant time and expense.

If we and/or our cloud-based solution providers are not successful in preventing outages and cyberattacks, our financial condition, results of operations and cash flow could be materially and adversely affected.

A Security Breach of Our or Our Third-Parties' Systems, Exposure of Personal or Confidential Information or Increased Government Regulation Relating to Handling of Personal Data, Could, Among Other Things, Disrupt Our Operations or Cause Us to Incur Substantial Costs or Negatively Affect Our Reputation.

We and many of our third-party vendors manage and maintain various types of proprietary information and sensitive and confidential data relating to our business, such as personally identifiable information of our consumers, our customers, our employees, and our business partners, as well as credit card information in certain instances. Unauthorized parties may attempt to gain access to these systems or information through fraud or other means of deceiving our employees or third-party service providers. The methods used to obtain

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unauthorized access, disable or degrade service or sabotage systems are constantly changing and evolving, and may be difficult to anticipate or detect for long periods of time. The ever-evolving threats mean we and our third-parties must continually evaluate and adapt our systems and processes, and there is no guarantee that these efforts will be adequate to safeguard against all data security breaches or misuses of data. For example, in 2017, we reported the discovery of a cybersecurity incident involving our prAna.com e-commerce website, for which a number of responsive actions were taken, including notification of potentially affected prAna consumers. Any future breaches of our or our third-parties’ systems could expose us, our customers, our consumers, our suppliers, our employees, or other individuals that may be affected to a risk of loss or misuse of this information, result in litigation and potential liability for us, damage our reputation, or otherwise harm our business.

In addition, as the regulatory environment related to information security, data collection and use and privacy becomes increasingly rigorous, with new and constantly changing requirements applicable to our business, compliance with those requirements could also result in additional costs or liabilities. For example, the European Union's General Data Protection Regulation (“GDPR”), which became effective in May 2018, and more recently, the California Consumer Privacy Act ("CCPA"), which went into effect in January 2020, required new processes be implemented to ensure compliance and now require the continued refinement of such processes as the regulations evolve, which is accomplished through significant efforts by our employees. The diverted attention of these employees may impact our operations and there may be additional costs incurred by us for third-party resources to advise on the constantly

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changing landscape. Limitations on the use of data may also impact our future business strategies. Additionally, violations of ~~GDPR~~these requirements could result in significant penalties ~~and non-compliance with CCPA may result in~~or litigation from ~~consumers or fines from the State of California.~~consumers.

We Depend on Certain Legacy Information Technology Systems, Which May Inhibit Our Ability to Operate Efficiently.

Our legacy product development, retail and other systems, on which we continue to manage a substantial portion of our business activities, rely on the availability of limited internal and external resources with the expertise to maintain the systems. In addition, our legacy systems, including aged systems in our Japanese and Korean businesses, may not support desired functionality for our operations and may inhibit our ability to operate efficiently. As we continue to transition from our legacy systems and implement new systems, certain functionality and information from our legacy systems, including that of third-party systems that interface with our legacy systems, may not be fully compatible with the new systems.

WE ARE SUBJECT TO LEGAL AND REGULATORY RISKS

Our Success Depends on the Protection of Our Intellectual Property Rights.

Our registered and common law trademarks, our patented or patent-pending designs and technologies, trade dress and the overall appearance and image of our products have significant value and are important to our ability to differentiate our products from those of our competitors.

As we strive to achieve product innovations, extend our brands into new product categories and expand the geographic scope of our marketing, we face a greater risk of inadvertent infringements of third-party rights or compliance issues with regulations applicable to products with technical features or components. We may become subject to litigation based on allegations of infringement or other improper use of intellectual property rights of third-parties. In addition, failure to successfully obtain and maintain patents on innovations could negatively affect our ability to market and sell our products.

We regularly discover products that are counterfeit reproductions of our products or that otherwise infringe on our proprietary rights. Increased instances of counterfeit manufactured products and sales may adversely affect our sales and the reputation of our brands and result in a shift of consumer preference away from our products. The actions we take to establish and protect trademarks and other proprietary rights may not be adequate to prevent imitation of our products by others or to prevent others from seeking to block sales of our products as violations of proprietary rights. In markets outside of the United States, it may be more difficult for us to establish our proprietary rights and to successfully challenge use of those rights by other parties.

Litigation is often necessary to defend against claims of infringement or to enforce and protect our intellectual property rights. Intellectual property litigation may be costly and may divert management's attention from the operation of our business. Adverse determinations in any litigation may result in the loss of our proprietary rights, subject us to significant liabilities or require us to seek licenses from third-parties, which may not be available on commercially reasonable terms, if at all.

Certain of Our Products Are Subject to Product Regulations and/or Carry Warranties, Which May Cause an Increase Our Expenses in the Event of Non-Compliance and/or Warranty Claims.

Our products are subject to increasingly stringent and complex domestic and foreign product labeling and performance and safety standards, laws and other regulations. These requirements could result in greater expense associated with compliance efforts, and failure to comply with these regulations could result in a delay, non-delivery, recall, or destruction of inventory shipments during key seasons or in other financial penalties. Significant or continuing noncompliance with these standards and laws could disrupt our business and harm our reputation.

Our products are generally used in outdoor activities, sometimes in severe conditions. Product recalls or product liability claims resulting from the failure, or alleged failure, of our products could have a material adverse effect on the reputation of our brands and result in additional expenses. Most of our products carry limited warranties for defects in quality and workmanship. We maintain a warranty reserve for estimated future warranty claims, but the actual costs of servicing future warranty claims may exceed the reserve.

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We May Have Additional Tax Liabilities or Experience Increased Volatility in Our Effective Tax Rate.

As a global company, we determine our income tax liability in various tax jurisdictions and our effective tax rate based on an analysis and interpretation of local tax laws and regulations and our financial projections. This analysis requires a significant amount of judgment and estimation and is often based on various assumptions about the future, which, in times of economic disruptions, are highly uncertain. These determinations are the subject of periodic domestic and foreign tax audits. Although we accrue for uncertain tax positions, our accruals may be insufficient to satisfy unfavorable findings. Unfavorable audit findings and tax rulings may result in payment of taxes, fines and penalties for prior periods and higher tax rates in future periods.

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On December 22, 2017, the United States government enacted comprehensive tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the "TCJA"). The TCJA made broad and complex changes to the United States tax code. In addition, on March 27, 2020, the United States government enacted the U.S. Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). A change in interpretation of the applicable revisions to the United States tax code and related tax accounting guidance, changes in assumptions made in developing these estimates, and regulatory guidance that may be issued with respect to the applicable revisions to the United States tax code, and state tax implications as a result of the TCJA, ~~and~~ the CARES Act, and other recent legislation may cause actual amounts to differ from our provisional estimates. In addition, as of January 2021, there is a new president of the United States, and his administration has proposed changes to United States tax legislation. Adoption of new tax rules could result in a material increase in our tax expense.

Other changes in the tax laws of the jurisdictions where we do business, including an increase in tax rates or an adverse change in the treatment of an item of income or expense, could result in a material increase in our tax expense. For example, changes in the tax laws of foreign jurisdictions could arise as a result of the Base Erosion and Profit Shifting project undertaken by the Organization for Economic Co-operation and Development ("OECD"). The OECD, which represents a coalition of member countries, has recommended changes to numerous long-standing tax principles. In addition, recent efforts to reform how digital profits are taxed globally could have significant compliance and cost implications. As these changes are adopted by countries, tax uncertainty could increase and may adversely affect our provision for income taxes.

WE OPERATE GLOBALLY AND ARE SUBJECT TO SIGNIFICANT RISKS IN MANY JURISDICTIONS

Global Regulation and Economic and Political Conditions, as well as Potential Changes in Regulations, Legislation and Government Policy, May Negatively Affect Our Business.

We are subject to risks generally associated with doing business internationally. These risks include, but are not limited to, the burden of complying with, and unexpected changes to, foreign and domestic laws and regulations, such as anti-corruption and forced labor regulations and sanctions regimes, the effects of fiscal and political crises and political and economic disputes, changes in diverse consumer preferences, foreign currency exchange rate fluctuations (such as those that may be caused by Brexit), managing a diverse and widespread workforce, political unrest, terrorist acts, military operations, disruptions or delays in shipments, disease outbreaks, such as the COVID-19 outbreak, natural disasters, and changes in economic conditions in countries in which we contract to manufacture, source raw materials or sell products. Our ability to sell products in certain markets, demand for our products in certain markets, our ability to collect accounts receivable, our contract manufacturers' ability to procure raw materials or manufacture products, distribution and logistics providers' ability to operate, our ability to operate brick and mortar stores, our workforce, and our cost of doing business (including the cost of freight and logistics) may be impacted by these events should they occur. Our exposure to these risks is heightened in Vietnam, where a significant portion of our contract manufacturing is located, in Russia, where our largest international distributor is located, and in China, where a large portion of the raw materials used in our products is sourced by our contract manufacturers. Should certain of these events occur in Vietnam, Russia or China, ~~(such as the COVID-19 outbreak),~~ they could cause a substantial disruption to our business and have a material adverse effect on our financial condition, results of operations and cash flows.

In addition, many of our imported products are subject to duties, tariffs or other import limitations that affect the cost and quantity of various types of goods imported into the United States and other markets, including the punitive tariffs on U.S. products imported from China imposed in 2019. ~~The~~In addition, goods suspected of being manufactured with forced labor could be blocked from importation.

In connection with the United Kingdom's ~~June 2016 referendum, in which voters approved its~~recent exit from the European Union (commonly referred to as "Brexit"), ~~has also created economic uncertainty relating to duties~~on December 24, 2020, the European Union and the United Kingdom ("U.K.") reached an agreement on a new trade agreement that became effective on January 1, 2021. However, as part of the agreement, there will be a new series of customs and regulatory checks, and as a result we anticipate increased shipping costs and near-term delays. The full effects of Brexit and the impact from the trade agreement and other formal agreements between the U.K. and European Union that may ~~be imposed on our products~~impact us remain uncertain and whether EU trade agreements allowing preferential duties will be honored. Any country in which our products are produced or sold may eliminate, adjust or impose new import and export limitations, duties, anti-dumping penalties, or other charges or restrictions, any of which could ~~subject us~~lead to additional ~~expense, decrease our profit margins on imported products~~cost, delays and ~~require us to significantly modify our current business practices.~~volatility in currency exchange rates, as well as create legal and global economic uncertainty.

Fluctuations in Inflation and Currency Exchange Rates Could Result in Lower Revenues, Higher Costs and/or Decreased Margins and Earnings.

We derive a significant portion of our sales from markets outside the United States, which consist of sales to wholesale customers and directly to consumers by our entities in Europe, Asia, and Canada and sales to independent international distributors who operate within EMEA and LAAP. The majority of our purchases of finished goods inventory from contract manufacturers are denominated in United States dollars, including purchases by our foreign entities. These purchase and sale transactions ~~exposes~~expose us to the volatility of global economic conditions, including fluctuations in inflation and foreign currency exchange rates. Our international revenues and expenses generally are derived from sales and operations in foreign currencies, and these revenues and expenses could be affected by currency fluctuations, specifically amounts recorded in foreign currencies and translated into United States dollars for consolidated ~~financial reporting, as~~

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financial reporting, as weakening of foreign currencies relative to the United States dollar adversely affects the United States dollar value of the Company’s foreign currency-denominated sales and earnings.

Our exposure is increased with respect to our wholesale customers (including international distributors), where, in order to facilitate solicitation of advance orders for the spring and fall seasons, we establish local-currency-denominated wholesale and retail price lists in each of our foreign entities approximately six to nine months prior to United States dollar-denominated seasonal inventory purchases. As a result, our consolidated results are directly exposed to transactional foreign currency exchange risk to the extent that the United States dollar strengthens during the six to nine months between when we establish seasonal local-currency prices and when we purchase inventory. In addition to the direct currency exchange rate exposures described above, our wholesale business is indirectly exposed to currency exchange rate risks. Weakening of a wholesale customer’s functional currency relative to the United States dollar makes it more expensive for it to purchase finished goods inventory from us, which may cause a wholesale customer to cancel orders or increase prices for our products, which may make our products less price-competitive in those markets. In addition, in order to make purchases and pay us on a timely basis, our international distributors must exchange sufficient quantities of their functional currency for United States dollars through the financial markets and may be limited in the amount of United States dollars they are able to obtain.

We employ several strategies in an effort to mitigate this transactional currency risk, but there is no assurance that these strategies will succeed in fully mitigating the negative effects of adverse foreign currency exchange rate fluctuations on the cost of our finished goods in a given period or that price increases will be accepted by our wholesale customers, international distributors or consumers. Our gross margins are adversely affected whenever we are not able to offset the full extent of finished goods cost increases caused by adverse fluctuations in foreign currency exchange rates.

Currency exchange rate fluctuations may also create indirect risk to our business by disrupting the business of independent finished goods manufacturers from which we purchase our products. When their functional currencies weaken in relation to other currencies, the raw materials they purchase on global commodities markets become more expensive and more difficult to finance. Although each manufacturer bears the full risk of fluctuations in the value of its currency against other currencies, our business can be indirectly affected when adverse fluctuations cause a manufacturer to raise the prices of goods it produces for us, disrupt the manufacturer's ability to purchase the necessary raw materials on a timely basis, or disrupt the manufacturer's ability to function as an ongoing business.

WE ARE SUBJECT TO NUMEROUS OPERATIONAL RISKS

Our Ability to Manage Fixed Costs Across a Business That is Affected by Seasonality May Impact Our Profits.

Our business is affected by the general seasonal trends common to the outdoor industry. Our products are marketed on a seasonal basis and our annual net sales are weighted heavily toward the fall/winter season, while our operating expenses are more equally distributed throughout the year. As a result, often a majority of our operating profits are generated in the second half of the year. If we are unable to manage our fixed costs in the seasons where we experience lower net sales, our profits may be adversely impacted.

Labor Matters, Changes in Labor Laws and Other Labor Issues May Reduce Our Revenues and Earnings.

Our business depends on our ability to source and distribute products in a timely manner. While a majority of our own operations are not subject to organized labor agreements, our relationship with our Cambrai distribution center employees is governed by French law, which includes a formal representation of employees by a Works Council and the application of a collective bargaining agreement. Matters that may affect our workforce (including COVID-19 infections or the risk thereof) at contract manufacturers where our goods are produced, shipping ports, transportation carriers, retail stores, or distribution centers create risks for our business, particularly if these matters result in work shut-downs (with little to no notice), slowdowns, lockouts, strikes, limitations on the number of individuals able to work (e.g. social distancing) or other disruptions. Labor matters may have a material adverse effect on our business, potentially resulting in canceled orders by customers, inability to fulfill potential e-commerce demand, unanticipated inventory accumulation and reduced net sales and net income.

In addition, our ability to meet our labor needs at our distribution centers, retail stores, corporate headquarters, and regional subsidiaries, including our ability to find qualified employees while controlling wage and related labor costs, is generally subject to numerous external factors, including the availability of a sufficient number of qualified people in the work force of the markets in which our operations are located, unemployment levels within those markets, prevailing and minimum wage rates, changing demographics, parental responsibilities, health and other insurance costs, ~~and~~ adoption of new or revised employment and labor laws and regulations, and fear of contracting COVID-19. If we are unable to locate, attract or retain qualified employees or experience higher than normal absenteeism, our ability to source, distribute and sell products in a timely and cost-effective manner may be negatively affected. Our ability to comply with labor laws, including our ability to adapt to rapidly changing labor laws, as well as provide a safe working environment may increase our risk of litigation and cause us to incur additional costs. Such risks are heightened during the COVID-19

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pandemic assince medical uncertainty about the virus increases the risk that safety protocols in our owned or affiliated facilities will not be effective or not be perceived as effective, or that any virus-related illnesses will be linked or alleged to be linked to such facilities, whether accurate or not.

We May Incur Additional Expenses, Be Unable to Obtain Financing, or Be Unable to Meet Financial Covenants ~~in Current~~of Our Financing ~~Arrangements~~Agreements as a Result of Downturns in the Global Markets.

Our vendors, wholesale customers, licensees and other participants in our supply chain may require access to credit markets in order to do business. Credit market conditions may slow our collection efforts as our wholesale customers find it more difficult to obtain necessary

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financing, leading to higher than normal accounts receivable. This could result in greater expense associated with collection efforts and increased bad debt expense. Credit conditions may impair our vendors' ability to finance the purchase of raw materials or general working capital needs to support our production requirements, resulting in a delay or non-receipt of inventory shipments during key seasons.

Historically, we have limited our reliance on debt to finance our working capital, capital expenditures and investing activity requirements. We expect to fund our future capital expenditures with existing cash, expected operating cash flows and credit facilities, but, if the need arises to finance additional expenditures, we may need to seek additional funding. Our ability to obtain additional financing will depend on many factors, including prevailing market conditions, our financial condition and our ability to negotiate favorable terms and conditions. Financing may not be available on terms that are acceptable or favorable to us, if at all. ~~In addition, macroeconomic conditions, such as increased volatility or disruption in the credit markets, could adversely affect our ability to refinance existing debt.~~

Our ~~restated~~ credit ~~agreement, as recently amended by the first amendment, has~~agreements have various financial and other covenants, including those that require us to maintain a funded debt ratio and interest coverage ratio. The first amendment provides for suspensions of the funded debt ratio and the interest coverage ratio beginning on July 1, 2020 through December 31, 2020 (the "covenant suspension period"). Following the end of the covenant suspension period, a significant reduction in demand may cause our earnings to be reduced enough to result in a breach of the funded debt ratio, which is based on our earnings before interest, taxes, depreciation, and amortization, or EBITDA. If we anticipate a potential breach, we expect to seek an amendment or waiver from our lenders or seek alternative financing. There is no assurance that our efforts to obtain such an amendment, waiver or alternative financing would be successful.covenants. If an event of default were to occur, the lenders could, among other things, declare outstanding amounts due and ~~payable and repossess collateral.~~payable. In addition, if the financial markets were to return to recessionary conditions, the ability of one or more of the banks participating in our credit agreement to honor their commitments thereunder could be impaired.

Acquisitions Are Subject to Many Risks.

From time to time, we may pursue growth through strategic acquisitions of assets or companies. Acquisitions are subject to many risks, including potential loss of significant customers or key personnel of the acquired business as a result of the change in ownership, difficulty integrating the operations of the acquired business or achieving targeted efficiencies, the incurrence of substantial costs and expenses related to the acquisition effort, and diversion of management's attention from other aspects of our business operations. For example, we may face integration challenges as we continue to fully integrate the operations of our prAna subsidiary acquired in May 2014.

Acquisitions may also cause us to incur debt or result in dilutive issuances of our equity securities. Our acquisitions may cause large one-time expenses or create goodwill or other intangible assets that could result in significant impairment charges in the future. We also make various estimates and assumptions in order to determine purchase price allocation and estimate the fair value of assets acquired and liabilities assumed. If our estimates or assumptions used to value these assets and liabilities vary from actual or future projected results, we may be exposed to losses, including impairment losses, that could be material. In the fourth quarter of 2020, we incurred a prAna brand trademark impairment charge of $17.5 million.

We do not provide any assurance that we will be able to successfully integrate the operations of any acquired businesses into our operations or achieve the expected benefits of any acquisitions. The failure to successfully integrate newly acquired businesses or achieve the expected benefits of strategic acquisitions in the future could have an adverse effect on our financial condition, results of operations or cash flows. We may not complete a potential acquisition for a variety of reasons, but we may nonetheless incur material costs in the preliminary stages of evaluating and pursuing such an acquisition that we cannot recover.

Extreme Weather Conditions and Natural Disasters Could Negatively Impact Our Operating Results and Financial Condition.

Extreme weather conditions in the areas in which our retail stores, suppliers, consumers, customers, distribution centers, headquarters and vendors are located could adversely affect our operating results and financial condition. Moreover, natural disasters such as earthquakes, hurricanes and tsunamis, whether occurring in the United States or abroad, and their related consequences and effects, including energy shortages and public health issues, could disrupt our operations, the operations of our vendors and other suppliers or result in economic instability and changes in consumer spending that may negatively impact our operating results and financial condition.

An Outbreak of Disease or Similar Public Health Threat, or Fear of Such an Event, Such as the COVID-19 Pandemic, Could Have, and in the Case of the COVID-19 Pandemic ~~Have~~Has Had and is Expected to Continue to Have, ~~a Material~~an Adverse Impact on Our Business, Operating Results and Financial Condition.

An outbreak of disease or similar public health threat, such as the COVID-19 pandemic, or fear of such an event, could have, and in the case of the COVID-19 pandemic ~~have~~has had and is expected to continue to have, a material adverse impact on our business,

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financial condition and operating results, including in the form of lower global net sales, the delay of inventory production and fulfillment, and incremental costs, such as, exceptional provisions for bad debt, severance and restructuring charges, and other related expenses (see Part I, Item 2 of this quarterly report for further discussion). Fear of contracting COVID-19, individuals contracting COVID-19 and the actions taken, and that may be taken, by governmental authorities, our third-party logistics providers, our landlords, our competitors or by us relating to ~~contain that~~the COVID-19 pandemic ~~or to treat its impact,~~ may (and in many cases, have):

•Restrict the operation of our retail store operations and our ability to meet consumer demand at our stores, including as a result of social distancing and other related COVID-19 containment measures (see "We May Not Realize Returns on Our Fixed Cost Investments in Our DTC Business Operations.");

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•Lead to a decline in discretionary spending by consumers (see "We are Subject to a Number of Risks Which May Adversely Affect Consumer and/or Wholesale Customer Demand for Our Products and Lead to a Decline in Sales and/or Earnings");

•Increase reliance by ~~the~~ consumers on e-commerce platforms (see "We are Subject to a Number of Risks Which May Adversely Affect Consumer and/or Wholesale Customer Demand for Our Products and Lead to a Decline in Sales and/or Earnings" and "We Rely on Information Technology Systems, including Third-Party Cloud-based Solutions, and Any Failure of These Systems May Result in Disruptions or Outages in Our E-Commerce and In-Store Retail Platforms, Loss of Processing Capabilities, and/or Loss of Data, Any of Which May Have a Material Adverse Effect on Our Financial Condition, Results of Operations or Cash Flow");

•Result in canceled orders, non-payment for orders received and/or delayed payment for orders received (see "Our Orders from Wholesale Customers are Subject to Cancellation, Which Could Lead to a Decline in Sales or Gross Profit, Write-downs of Excess Inventory, Increased Discounts or Extended Credit Terms to Our Wholesale Customers");

•Impair the financial health of certain of our wholesale customers (see "We are Subject to a Number of Risks Which May Adversely Affect Consumer and/or Wholesale Customer Demand for Our Products and Lead to a Decline in Sales and/or Earnings");

•Result in a misalignment between demand and supply (see "Our Inability to Accurately Predict Consumer and/or Customer Demand for Our Products Could Lead to a Build-up of Inventory or a Lack of Inventory and Affect Our Gross Margin");

•Impact global economic conditions and cause an economic slowdown, possibly resulting in a global recession (see "We are Subject to a Number of Risks Which May Adversely Affect Consumer and/or Wholesale Customer Demand for Our Products and Lead to a Decline in Sales and/or Earnings" and "We May Incur Additional Expenses, Be Unable to Obtain Financing or Be Unable to Meet Financial Covenants in Current Financing Arrangements as a Result of Downturns in the Global Markets");

•Cause disruptions in the supply chain, including the timeliness of product deliveries and the ability to deliver product (see “Our Reliance on Contract Manufacturers, Including Our Ability to Enter Into Purchase Order Commitments with Them and Maintain Quality Standards of Our Products and Standards of Manufacturing Processes at Contract Manufacturers, May Result in Lost Sales and Impact Our Gross Margin and Results of Operations”, “For Certain Materials We Depend on a Limited Number of Suppliers, Which May Cause Increased Costs or Production Delays” and “Our Success Depends on Our and Third-Party Distribution Facilities, and Other Third-Party Logistics Providers”);

•Impact previous business assumptions (see "Acquisitions Are Subject to Many Risks", "We May Have Additional Tax Liabilities or Experience Increased Volatility in Our Effective Tax Rate" and "Our Inability to Accurately Predict Consumer and/or Customer Demand for Our Products Could Lead to a Build-up of Inventory or a Lack of Inventory and Affect Our Gross Margin");

•Cause the implementation of cost containment measures and reductions in capital expenditures, including those relating to strategic priorities (see “We May Be Unable to Execute Our Strategic Priorities, Which Could Limit ~~our~~Our Ability to Invest in and Grow Our Business.”);

•Increase the reliance of our employees on digital solutions (see “We Rely on Information Technology Systems, including Third-Party Cloud-based Solutions, and Any Failure of These Systems May Result in Disruptions or Outages in our E-Commerce and In-Store Retail Platforms, Loss of Processing Capabilities, and/or Loss of Data, Any of Which May Have a Material Adverse Effect on Our Financial Condition, Results of Operations or Cash Flow” and “A Security Breach of Our or Our Third-Parties' Systems, Exposure of Personal or Confidential Information or Increased Government Regulation Relating to Handling of Personal Data, Could, Among Other Things, Disrupt Our Operations or Cause Us to Incur Substantial Costs or Negatively Affect Our Reputation”);

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•Restrict global business and travel (see “Global Regulation and Economic and Political Conditions, as well as Potential Changes in Regulations, Legislation and Government Policy, May Negatively Affect Our Business”);

•Cause currency rate fluctuations (see “Fluctuations in Inflation and Currency Exchange Rates Could Result in Lower Revenues, Higher Costs and/or Decreased Margins and Earnings”);

•Impair our ability to ship product through our owned or affiliated distribution centers, including as a result of capacity reductions, shift changes, labor shortages, higher than normal absenteeism and/or the complete shut-downs of facilities for deep cleaning procedures (see “Labor Matters, Changes in Labor Laws and Other Labor Issues May Reduce Our Revenues and Earnings”);

•Cause rapid changes to employment and tax law (see “Labor Matters, Changes in Labor Laws and Other Labor Issues May Reduce Our Revenues and Earnings”, and "We May Have Additional Tax Liabilities or Experience Increased Volatility in Our Effective Tax Rate");

•Result in supply chain finance issues (see “We May Incur Additional Expenses, Be Unable to Obtain Financing or Be Unable to Meet Financial Covenants in Current Financing Arrangements as a Result of Downturns in the Global Markets”);

•Restrict our ability to obtain financing (see “We May Incur Additional Expenses, Be Unable to Obtain Financing or Be Unable to Meet Financial Covenants in Current Financing Arrangements as a Result of Downturns in the Global Markets”);

•Impair our key personnel (see “We Depend on Key Personnel”);

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•Result in incremental costs from the adoption of preventative measures, including providing facial coverings and hand sanitizer, rearranging operations to follow social distancing protocols, conducting temperature checks and undertaking regular and thorough disinfecting of surfaces; and/or

•Cause any number of other disruptions to our business, the risks of which may be otherwise identified herein.

In addition, the impact of the COVID-19 pandemic may also exacerbate other risks discussed in this Item 1A, any of which could have a material effect on us. The COVID-19 pandemic is ongoing, and its dynamic nature, including uncertainties relating to the duration of the pandemic, the return of consumer confidence and actions that may be taken by governmental authorities, landlords, our competitors or by us to contain the pandemic or to treat its impact, makes it difficult to forecast the degree to, or the time period over, which our sales and operations will be affected.

Our Investment Securities May Be Adversely Affected by Market Conditions.

Our investment portfolio is subject to a number of risks and uncertainties. Changes in market conditions, such as those that accompany an economic downturn or economic uncertainty, may negatively affect the value and liquidity of our investment portfolio, perhaps significantly. Our ability to find diversified investments that are both safe and liquid and that provide a reasonable return may be impaired, potentially resulting in lower interest income, less diversification, longer investment maturities, or other-than-temporary impairments.

We Depend on Key Personnel.

Our future success will depend in part on our ability to attract, retain and develop key talent and to effectively manage succession. We face intense competition for these individuals worldwide, and there is a significant concentration of well-funded apparel and footwear competitors near our headquarters in Portland, Oregon. We may not be able to attract qualified new employees or retain existing employees, which may have a material adverse effect on our financial condition, results of operations or cash flows.

We License our Proprietary Rights to Third-Parties and Could Suffer Reputational Damage to Our Brands if We Fail to Choose Appropriate Licensees.

We currently license, and expect to continue licensing, certain of our proprietary rights, such as trademarks or copyrighted material, to third-parties. We rely on our licensees to help preserve the value of our brands. Although we attempt to protect our brands through approval rights, we cannot completely control the use of our licensed brands by our licensees. The misuse of a brand by or negative publicity involving a licensee could have a material adverse effect on that brand and on us.

In addition, from time to time we license the right to operate retail stores for our brands to third-parties, primarily to our independent international distributors. We provide training to support these stores and set operational standards. However, these third-parties may not operate the stores in a manner consistent with our standards, which could cause reputational damage to our brands or harm these third-parties' sales.

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RISKS RELATED TO OUR SECURITIES

Our Common Stock Price May Be Volatile.

Our common stock is traded on the NASDAQ Global Select Market. The size of our public float and our average daily trading volume makes the price of our common stock susceptible to large degrees of fluctuation. Factors such as general market conditions, actions by institutional investors to rapidly accumulate or divest of a substantial number of our shares, fluctuations in financial results, variances from financial market expectations, changes in earnings estimates or recommendations by analysts, or announcements by us or our competitors may cause the market price of our common stock to fluctuate, perhaps substantially.

~~Insiders~~Certain Shareholders Have Substantial Control ~~a Majority of Our Common Stock.~~Over Us and Are Able to Influence Corporate Matters.

~~Five~~At March 31, 2021, five related shareholders, The Gertrude Boyle Trust, Sarah A. Bany, Timothy P. Boyle, Joseph P. Boyle, and Molly A.E. Boyle, ~~have historically~~ controlled ~~a majority~~53.4% of our common ~~stock.~~stock outstanding. Following Gertrude Boyle's death, Sarah A. Bany is serving as trustee of The Gertrude Boyle Trust, which holds the shares that were beneficially owned by Gertrude Boyle. As a result, if acting together, Sarah A. Bany, Timothy P. Boyle, Joseph P. Boyle, and Molly A.E. Boyle ~~can effectively control~~are able to exercise significant influence over all matters requiring shareholder ~~approval without the cooperation of other shareholders.~~approval.

The Sale or Proposed Sale of a Substantial Number of Shares of Our Common Stock Could Cause the Market Price of Our Common Stock to Decline.

Shares held by The Gertrude Boyle Trust, Sarah A. Bany, Timothy P. Boyle, Joseph P. Boyle, and Molly A.E. Boyle, are available for resale, subject to the requirements of, and the rules under, the Securities Act of 1933 and the Securities Exchange Act of 1934. The sale or the prospect of the sale of a substantial number of these shares may have an adverse effect on the market price of our common stock.

We also may issue our capital stock or securities convertible into our capital stock from time to time in connection with a financing, acquisition, investments, or otherwise. Any such issuance could result in substantial dilution to our existing shareholders and cause the market price of our common stock to decline.

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Because We Do Not Intend to Pay Cash Dividends in the Near Term, Shareholders May Not Receive Any Return On Investment Unless They Are Able to Sell Their Common Stock for a Price Greater than Their Purchase Price.

Our Board of Directors has suspended dividend payments. Any determination to pay dividends in the future will be at the discretion of our Board of Directors and will depend upon results of operations, financial condition, contractual restrictions, including those under our restated credit agreement, any potential future indebtedness we may incur, restrictions imposed by applicable law and other factors our Board of Directors deems relevant. Accordingly, if shareholders purchase shares of our common stock, realization of a gain on investment will depend on the appreciation of the price of our common stock.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

~~Period~~

~~Total Number of Shares Purchased~~

~~Average Price Paid per Share~~

~~Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs~~

Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
(in millions)

~~April 1, 2020 through April 30, 2020~~

—

~~82.2~~

~~May 1, 2020 through May 30, 2020~~

—

~~82.2~~

~~June 1, 2020 through June 30, 2020~~

—

~~82.2~~

~~Total~~

—

~~82.2~~


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions)

January 1, 2021 through January 31, 2021	—	$	—	—	$	482.2
February 1, 2021 through February 28, 2021	37,082	102.34		37,082	$	478.4
March 1, 2021 through March 31, 2021	71,905	103.30		71,905	$	471.0
Total	108,987	$	102.98	108,987	$	471.0

Since the inception of the Company's stock repurchase plan, our Board of Directors has authorized the repurchase of ~~$1.10~~$1.5 billion of our common stock. As of ~~June 30, 2020,~~March 31, 2021, we had repurchased ~~26.8~~26.9 million shares under this program at an aggregate purchase price of ~~$1,017.8~~$1,029.0 million, pursuant to a pre-established written plan. Shares of our common stock may be purchased in the open market or through privately negotiated transactions, subject to market conditions. The repurchase program does not obligate us to acquire any specific number of shares or to acquire shares over any specified period of time. ~~In mid-March 2020, the Company suspended share repurchases due to the COVID-19 pandemic impacts.~~

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Item 6. EXHIBITS

(a)Exhibits


	3.1	Third Restated Articles of Incorporation (incorporated by reference to exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2000) (File No. 000-23939).
	3.1(a)	Amendment to Third Restated Articles of Incorporation (incorporated by reference to exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2002) (File No. 000-23939).
	3.1(b)	Second Amendment to Third Restated Articles of Incorporation (incorporated by reference to exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018) (File No. 000-23939).
	3.2	2000 Restated Bylaws of Columbia Sportswear Company, as amended (incorporated by reference to exhibit 3.2 to the Company's Form 8-K filed on March 26, 2019) (File No. 000-23939).
+	10.1	~~Columbia Sportswear~~Form of Nonstatutory Stock Option Agreement for Director stock options granted under the Company's 2020 Stock Incentive ~~Plan ("2020 Stock Incentive Plan") (incorporated by reference to Exhibit 99.1 to the Registrant's Registration Statement on Form S-8, filed with the Commission on June 4, 2020) (File No. 333-238935)~~Plan.
+	10.2	Form of Nonstatutory Stock Option Agreement for stock options granted under the Company's 2020 Stock Incentive Plan (incorporated by reference to exhibit 10.2 to the Company's Form 8-K, filed on June 4, 2020) (File No. 000-23939).
+	~~10.3~~	~~Form of~~ Restricted Stock ~~Units~~Unit Award ~~Agreement~~ for Director restricted stock units granted under the Company's 2020 Stock Incentive ~~Plan (incorporated by reference to exhibit 10.3 to the Company's Form 8-K, filed on June 4, 2020) (File No. 000-23939).~~
+	~~10.4~~	Form of Performance-Based Restricted Stock Units Award Agreement for performance-based restricted stock units granted under the Company's 2020 Stock Incentive Plan (incorporated by reference to exhibit 10.4 to the Company's Form 8-K, filed on June 4, 2020) (File No. 000-23939).
+	~~10.5~~	Form of Long-Term Incentive Cash Award Agreement for cash awards granted under the Company's 2020 Stock Incentive Plan (incorporated by reference to exhibit 10.5 to the Company's Form 8-K, filed on June 4, 2020) (File No. 000-23939).
	~~10.6~~	First Amendment to Second Amended and Restated Credit Agreement, entered into as of July 10, 2020, among Columbia Sportswear Company, Wells Fargo Bank, National Association, as the administrative agent for the lenders and as a lender, and Bank of America, N.A., as a lender (incorporated by reference to exhibit 10.1 to the Company's Form 8-K filed on July 1 4 ~~, 2020) (File No. 000-23939).~~Plan.
	31.1	Rule 13a-14(a) Certification of Timothy P. Boyle, Chairman, President and Chief Executive ~~Officer~~Officer.
	31.2	Rule 13a-14(a) Certification of Jim A. Swanson, ~~Senior~~Executive Vice President and Chief Financial ~~Officer~~Officer.
	32.1	Section 1350 Certification of Timothy P. Boyle, Chairman, President and Chief Executive ~~Officer~~Officer.
	32.2	Section 1350 Certification of Jim A. Swanson, ~~Senior~~Executive Vice President and Chief Financial ~~Officer~~Officer.
	101	INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
	101	SCH XBRL Taxonomy Extension Schema Document
	101	CAL XBRL Taxonomy Extension Calculation Linkbase Document
	101	DEF XBRL Taxonomy Extension Definition Linkbase Document
	101	LAB XBRL Taxonomy Extension Label Linkbase Document
	101	PRE XBRL Taxonomy Extension Presentation Linkbase Document
	104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

+	Management Contract or Compensatory Plan

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


						COLUMBIA SPORTSWEAR COMPANY
~~August~~
May 6, ~~2020~~2021						/s/ JIM A. SWANSON
						Jim A. Swanson
						~~Senior~~Executive Vice President and Chief Financial Officer
						(Duly Authorized Officer and Principal Financial and Accounting Officer)

4639


Oregon						93-0498284
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification Number)


Large Accelerated Filer	x☒	Accelerated Filer	¨☐
Non-accelerated Filer	¨ ☐	Smaller Reporting Company	☐
Emerging Growth Company	☐


(in thousands)	(in thousands)	June 30, 2020		December 31, 2019		June 30, 2019		(in thousands)	March 31, 2021		December 31, 2020		March 31, 2020
ASSETS	ASSETS							ASSETS
Current Assets:	Current Assets:							Current Assets:
Cash and cash equivalents	Cash and cash equivalents	$	474,793	$	686,009	$	386,150	Cash and cash equivalents	$	873,641	$	790,725	$	671,108

Short-term investments	Short-term investments	975		1,668		138,198		Short-term investments	920		1,224		35,828
Accounts receivable, net of allowance of $28,783, $8,925, and $8,072, respectively		217,536		488,233		280,641
Inventories		806,887		605,968		756,378

Accounts receivable, net of allowance of $13,480, $21,810, and $27,579, respectively								Accounts receivable, net of allowance of $13,480, $21,810, and $27,579, respectively	338,787		452,945		312,951
Inventories, net								Inventories, net	525,704		556,530		577,124
Prepaid expenses and other current assets	Prepaid expenses and other current assets	102,574		93,868		100,800		Prepaid expenses and other current assets	66,173		54,197		113,726
Total current assets	Total current assets	1,602,765		1,875,746		1,662,167		Total current assets	1,805,225		1,855,621		1,710,737
Property, plant and equipment, at cost, net of accumulated depreciation of $546,397, $523,092, and $510,267, respectively		328,904		346,651		312,948
Property, plant and equipment, at cost, net of accumulated depreciation of $576,597, $574,247, and $530,329, respectively								Property, plant and equipment, at cost, net of accumulated depreciation of $576,597, $574,247, and $530,329, respectively	300,063		309,792		332,997
Operating lease right-of-use assets	Operating lease right-of-use assets	365,521		394,501		368,856		Operating lease right-of-use assets	363,652		339,244		387,984
Intangible assets, net	Intangible assets, net	122,105		123,595		125,085		Intangible assets, net	103,146		103,558		122,850
Goodwill	Goodwill	68,594		68,594		68,594		Goodwill	68,594		68,594		68,594
Deferred income taxes	Deferred income taxes	73,395		78,849		82,418		Deferred income taxes	86,825		96,126		73,827
Other non-current assets	Other non-current assets	61,113		43,655		42,379		Other non-current assets	66,401		63,636		54,498
Total assets	Total assets	$	2,622,397	$	2,931,591	$	2,662,447	Total assets	$	2,793,906	$	2,836,571	$	2,751,487
LIABILITIES AND EQUITY	LIABILITIES AND EQUITY							LIABILITIES AND EQUITY
Current Liabilities:	Current Liabilities:							Current Liabilities:
Short-term borrowings	Short-term borrowings	$	2,789	$	—	$	—	Short-term borrowings	$	0	$	0	$	174,443
Accounts payable	Accounts payable	255,702		255,372		309,945		Accounts payable	165,555		206,697		150,971
Accrued liabilities	Accrued liabilities	203,827		295,723		200,816		Accrued liabilities	224,674		257,278		214,044
Operating lease liabilities	Operating lease liabilities	70,916		64,019		60,804		Operating lease liabilities	81,308		65,466		64,456
Income taxes payable	Income taxes payable	2,594		15,801		6,416		Income taxes payable	3,431		23,181		6,441

Total current liabilities	Total current liabilities	535,828		630,915		577,981		Total current liabilities	474,968		552,622		610,355

Non-current operating lease liabilities	Non-current operating lease liabilities	347,967		371,507		345,063		Non-current operating lease liabilities	356,766		353,181		364,300
Income taxes payable	Income taxes payable	48,863		48,427		53,216		Income taxes payable	50,285		49,922		48,320
Deferred income taxes	Deferred income taxes	7,942		6,361		8,518		Deferred income taxes	4,406		5,205		8,944
Other long-term liabilities	Other long-term liabilities	28,968		24,934		22,475		Other long-term liabilities	38,671		42,870		22,977
Total liabilities	Total liabilities	969,568		1,082,144		1,007,253		Total liabilities	925,096		1,003,800		1,054,896
Commitments and contingencies (Note 7)
Commitments and contingencies (Note 6)								Commitments and contingencies (Note 6)	0		0		0
Shareholders' Equity:	Shareholders' Equity:							Shareholders' Equity:
Preferred stock; 10,000 shares authorized; NaN issued and outstanding		—		—		—
Common stock (0 par value); 250,000 shares authorized; 66,148, 67,561, and 67,586, issued and outstanding, respectively		5,396		4,937		100
Preferred stock; 10,000 shares authorized; 0ne issued and outstanding								Preferred stock; 10,000 shares authorized; 0ne issued and outstanding	0		0		0
Common stock (no par value); 250,000 shares authorized; 66,457, 66,252, and 66,116, issued and outstanding, respectively								Common stock (no par value); 250,000 shares authorized; 66,457, 66,252, and 66,116, issued and outstanding, respectively	22,230		20,165		565
Retained earnings	Retained earnings	1,653,293		1,848,935		1,656,392		Retained earnings	1,850,415		1,811,800		1,704,000
Accumulated other comprehensive loss		(5,860)		(4,425)		(1,298)
Accumulated other comprehensive income (loss)								Accumulated other comprehensive income (loss)	(3,835)		806		(7,974)
Total shareholders' equity	Total shareholders' equity	1,652,829		1,849,447		1,655,194		Total shareholders' equity	1,868,810		1,832,771		1,696,591
Total liabilities and shareholders' equity	Total liabilities and shareholders' equity	$	2,622,397	$	2,931,591	$	2,662,447	Total liabilities and shareholders' equity	$	2,793,906	$	2,836,571	$	2,751,487


		Three Months Ended June 30,																							Three Months Ended March 31,
		Reported Net Sales		Adjust for Foreign Currency Translation		Constant-currency Net Sales			Reported Net Sales			Reported Net Sales		Constant-currency Net Sales
(In millions, except for percentage changes)		2020						2020⁽¹⁾			2019		% Change		% Change
(in millions, except for percentage changes)															(in millions, except for percentage changes)	Reported Net Sales 2021		Adjust for Foreign Currency Translation		Constant-currency Net Sales 2021(1)		Reported Net Sales 2020		Reported Net Sales % Change	Constant-currency Net Sales % Change(1)
Brand Net Sales:	Brand Net Sales:														Brand Net Sales:
Columbia	Columbia	$	265.8	$	2.5	$	268.3		$	454.9		(42)%		(41)%	Columbia	$	527.4	$	(11.9)	$	515.5	$	471.7	12%	9%
SOREL	SOREL	13.3		0.1		13.4			15.1			(12)%		(11)%	SOREL	46.3		(0.6)		45.7		38.7		20%	18%
prAna	prAna	27.7		—		27.7			38.7			(28)%		(28)%	prAna	31.5		—		31.5		36.5		(14)%	(14)%
Mountain Hardwear	Mountain Hardwear	9.8		0.2		10.0			17.5			(44)%		(43)%	Mountain Hardwear	20.4		(0.3)		20.1		21.3		(4)%	(6)%
Total	Total	$	316.6	$	2.8	$	319.4		$	526.2		(40)%		(39)%	Total	$	625.6	$	(12.8)	$	612.8	$	568.2	10%	8%

Product Category Net Sales:	Product Category Net Sales:														Product Category Net Sales:
Apparel, Accessories and Equipment	Apparel, Accessories and Equipment	$	243.8	$	2.0	$	245.8		$	432.2		(44)%		(43)%	Apparel, Accessories and Equipment	$	468.9	$	(8.7)	$	460.2	$	452.2	4%	2%
Footwear	Footwear	72.8		0.8		73.6			94.0			(23)%		(22)%	Footwear	156.7		(4.1)		152.6		116.0		35%	32%
Total	Total	$	316.6	$	2.8	$	319.4		$	526.2		(40)%		(39)%	Total	$	625.6	$	(12.8)	$	612.8	$	568.2	10%	8%

Channel Net Sales:	Channel Net Sales:														Channel Net Sales:
Wholesale	Wholesale	$	159.9	$	1.3	$	161.2		$	296.2		(46)%		(46)%	Wholesale	$	335.4	$	(7.8)	$	327.6	$	325.9	3%	1%
DTC	DTC	156.7		1.5		158.2			230.0			(32)%		(31)%	DTC	290.2		(5.0)		285.2		242.3		20%	18%
Total	Total	$	316.6	$	2.8	$	319.4		$	526.2		(40)%		(39)%	Total	$	625.6	$	(12.8)	$	612.8	$	568.2	10%	8%


	Six Months Ended June 30,
	Reported Net Sales		Adjust for Foreign Currency Translation		Constant-currency Net Sales			Reported Net Sales			Reported Net Sales		Constant-currency Net Sales
(In millions, except for percentage changes)	2020						2020⁽¹⁾			2019		% Change		% Change
Brand Net Sales:
Columbia	$	737.5	$	4.8	$	742.3		$	1,007.1		(27)%		(26)%
SOREL	52.0		0.1		52.1			54.6			(5)%		(5)%
prAna	64.2		—		64.2			79.9			(20)%		(20)%
Mountain Hardwear	31.1		0.2		31.3			39.2			(21)%		(20)%
Total	$	884.8	$	5.1	$	889.9		$	1,180.8		(25)%		(25)%

Product Category Net Sales:
Apparel, Accessories and Equipment	$	696.0	$	3.6	$	699.6		$	958.2		(27)%		(27)%
Footwear	188.8		1.5		190.3			222.6			(15)%		(15)%
Total	$	884.8	$	5.1	$	889.9		$	1,180.8		(25)%		(25)%

Channel Net Sales:
Wholesale	$	485.8	$	2.6	$	488.4		$	659.4		(26)%		(26)%
DTC	399.0		2.5		401.5			521.4			(23)%		(23)%
Total	$	884.8	$	5.1	$	889.9		$	1,180.8		(25)%		(25)%


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934


	Three Months Ended June 30, 2019
(in thousands, except per share amounts)	Common Stock							Retained Earnings		Accumulated Other Comprehensive Loss		Total
		Shares Outstanding			Amount
BALANCE, MARCH 31, 2019	68,346		$	94		$	1,723,873	$	(3,318)	$	1,720,649
Net income	—		—			23,029		—		23,029
Other comprehensive income (loss):

Unrealized holding losses on derivative transactions, net	—		—			—		(1,881)		(1,881)
Foreign currency translation adjustment, net	—		—			—		3,901		3,901
Cash dividends ($0.24 per share)	—		—			(16,268)		—		(16,268)
Issuance of common stock related to stock-based compensation, net	76		2,550			—		—		2,550
Stock-based compensation expense	—		4,566			—		—		4,566
Repurchase of common stock	(836)		(7,110)			(74,242)		—		(81,352)
BALANCE, JUNE 30, 2019	67,586		$	100		$	1,656,392	$	(1,298)	$	1,655,194


	Six months ended June 30, 2020
	Common Stock							Retained Earnings		Accumulated Other Comprehensive Loss		Total
		Shares Outstanding			Amount
BALANCE, DECEMBER 31, 2019	67,561		$	4,937		$	1,848,935	$	(4,425)	$	1,849,447
Net loss	—		—			(50,494)		—		(50,494)
Other comprehensive income (loss):

Unrealized holding gains on derivative transactions, net	—		—			—		6,663		6,663
Foreign currency translation adjustment, net	—		—			—		(8,098)		(8,098)
Cash dividends ($0.26 per share)	—		—			(17,195)		—		(17,195)
Issuance of common stock related to stock-based compensation, net	144		(2,317)			—		—		(2,317)
Stock-based compensation expense	—		7,712			—		—		7,712
Repurchase of common stock	(1,557)		(4,936)			(127,953)		—		(132,889)
BALANCE, JUNE 30, 2020	66,148		$	5,396		$	1,653,293	$	(5,860)	$	1,652,829


	Six Months Ended June 30, 2019
	Columbia Sportswear Company Shareholders' Equity
	Common Stock							Retained Earnings		Accumulated Other Comprehensive Loss		Non-Controlling Interest		Total
		Shares Outstanding			Amount
BALANCE, DECEMBER 31, 2018	68,246		$	—		$	1,677,920	$	(4,063)	$	16,456	$	1,690,313
Net income	—		—			97,206		—		—		97,206
Purchase of non-controlling interest	—		—			—		(99)		(16,456)		(16,555)
Other comprehensive income (loss):
Unrealized holding gains on available-for-sale securities, net	—		—			—		56		—		56
Unrealized holding losses on derivative transactions, net	—		—			—		(548)		—		(548)
Foreign currency translation adjustment, net	—		—			—		3,356		—		3,356
Cash dividends ($0.48 per share)	—		—			(32,686)		—		—		(32,686)
Issuance of common stock related to stock-based compensation, net	372		5,697			—		—		—		5,697
Stock-based compensation expense	—		8,781			—		—		—		8,781
Repurchase of common stock	(1,032)		(14,378)			(86,048)		—		—		(100,426)
BALANCE, JUNE 30, 2019	67,586		$	100		$	1,656,392	$	(1,298)	$	—	$	1,655,194


(in thousands)	Unrealized losses on available-for-sale securities		Unrealized holding gains (losses) on derivative transactions		Foreign currency translation adjustments		Total
Balance at March 31, 2020	$	(4)	$	21,007	$	(28,977)	$	(7,974)
Other comprehensive income (loss) before reclassifications	—		(3,347)		6,976		3,629
Amounts reclassified from accumulated other comprehensive loss⁽¹⁾	—		(1,515)		—		(1,515)
Net other comprehensive income (loss) during the period	—		(4,862)		6,976		2,114
Balance at June 30, 2020	$	(4)	$	16,145	$	(22,001)	$	(5,860)


(in thousands)	Unrealized gains (losses) on available-for-sale securities		Unrealized holding gains (losses) on derivative transactions		Foreign currency translation adjustments		Total
Balance at December 31, 2019	$	(4)	$	9,482	$	(13,903)	$	(4,425)
Other comprehensive income (loss) before reclassifications	—		11,015		(8,098)		2,917
Amounts reclassified from accumulated other comprehensive loss⁽¹⁾	—		(4,352)		—		(4,352)
Net other comprehensive income (loss) during the period	—		6,663		(8,098)		(1,435)
Balance at June 30, 2020	$	(4)	$	16,145	$	(22,001)	$	(5,860)


	Statement of Operations Classification	Three Months Ended June 30,									Six Months Ended June 30,
(in thousands)				2020			2019			2020			2019
Currency Forward and Option Contracts:
Derivative instruments designated as cash flow hedges:
Gain (loss) recognized in other comprehensive income (loss), net of tax	—	$	(3,347)		$	(464)		$	11,015		$	2,804
Gain reclassified from accumulated other comprehensive income or loss to income for the effective portion	Net sales	165			75			43			110
Gain reclassified from accumulated other comprehensive income or loss to income for the effective portion	Cost of sales	1,826			925			4,621			2,121

Gain reclassified from accumulated other comprehensive income or loss to income as a result of cash flow hedge discontinuance	Other non-operating income	6			—			1,117			—
Loss recognized in income for amount excluded from effectiveness testing and for the ineffective portion	Net sales	—			(26)			—			(31)
Gain recognized in income for amount excluded from effectiveness testing and for the ineffective portion	Cost of sales	—			931			—			2,380
Derivative instruments not designated as cash flow hedges:
Gain (loss) recognized in income	Other non-operating income	(319)			(1,137)			1,330			(574)


	Three Months Ended March 31,
(in millions)	2021		2020		Change ($)
U.S.	$	99.7	$	40.0	$	59.7
LAAP	9.7		6.1		3.6
EMEA	10.1		(0.1)		10.2
Canada	6.2		4.2		2.0
Total segment income from operations	$	125.7	$	50.2	75.5
Unallocated corporate expenses	(55.2)		(52.2)		(3.0)
Income (loss) from operations	$	70.5	$	(2.0)	$	72.5


	Three Months Ended June 30,
			Adjust for		Constant-					Constant-
	Reported		Foreign		currency		Reported		Reported	currency
	Net Sales		Currency		Net Sales		Net Sales		Net Sales	Net Sales
(In millions, except for percentage changes)	2020		Translation		2020⁽¹⁾		2019		% Change	% Change⁽¹⁾
U.S.	$	183.2	$	—	$	183.2	$	315.5	(42)%	(42)%
LAAP	67.4		1.9		69.3		101.6		(34)%	(32)%
EMEA	58.3		0.5		58.8		91.6		(36)%	(36)%
Canada	7.7		0.4		8.1		17.5		(56)%	(54)%
	$	316.6	$	2.8	$	319.4	$	526.2	(40)%	(39)%