2021 Annual Report
WE CONNECT
ACTIVE
PEOPLE
WITH THEIR
PASSIONS
Dear Fellow Shareholders:
(All growth and financial performance comparisons are between
full year 2021 and full year 2020, unless otherwise noted)
2021 was an extraordinary year for Columbia Sportswear
Company, with record net sales and operating profit
performance. Our results demonstrate that our strategy
is excelling, and our powerful portfolio of brands is
resonating with consumers. To achieve this record
financial performance, we had to navigate numerous
pandemic-related operational challenges and I would like
to thank our worldwide employees, whose tremendous
hard work and perseverance enabled our success.
Net sales increased 25 percent to $3.13 billion in 2021,
with growth across all geographies, brands and product
categories. Our direct-to-consumer (“DTC”) business was
a bright spot, growing 33 percent. Our DTC brick & mortar
performance improved during the year as consumers
gradually returned to in-store shopping. Even as stores
reopened and traffic returned, our DTC e-commerce
business remained strong, growing 20 percent year-over-
year. Compared to pre-pandemic 2019 levels, our DTC
e-commerce business increased 67 percent, reflecting
the powerful consumer shift towards online shopping that
has occurred since the pandemic began. Our wholesale
business grew 18 percent, with exceptional sell-through
performance noted across our retail partners.
Gross margin expanded 270 basis points to 51.6 percent
of net sales. When combined with operating expense
leverage, our operating margin increased 890 basis points
to 14.4 percent of net sales. This performance resulted in
diluted earnings per share of $5.33, a 229 percent increase
compared to 2020 diluted earnings per share of $1.62.
Our strong performance in 2021 enabled $354 million in
operating cash flow, and we exited the year with $895
million in cash, cash equivalents and short-term investments
and no borrowings. In addition to investing in our business
to fuel long-term profitable growth, we continue to
prioritize returning cash to shareholders through buybacks
and dividends. In 2021, we repurchased 1.7 million shares
of common stock for $166 million and paid $69 million
in dividends. In February 2022, based on our profitable
growth trajectory and fortress balance sheet, our Board
of Directors had the confidence to approve a 15 percent
increase to our quarterly cash dividend from $0.26 to $0.30.
As I referenced in our 2020 Annual Shareholder Letter,
one of our primary goals was to not only survive the
pandemic but return to growth and emerge in a stronger
competitive position. Reflecting on 2021 results, I
believe we achieved this goal. Looking ahead, we are
well-positioned to benefit from consumer and outdoor
trends and I’m optimistic about our ability to realize the
tangible growth opportunities that we have ahead of us.
2021 BRAND PERFORMANCE
NET SALES AND GROWTH VS. PRIOR YEAR
TWELVE MONTHS ENDED DECEMBER 31, 2021
$2,557 MILLION
+28%
$321 MILLION
+9%
$106 MILLION
+33%
$142 MILLION
+8%
Columbia brand net sales increased 28 percent to $2,557
million in 2021, with growth across all channels and geographic
segments reflecting robust consumer demand for our products.
On the product front, we successfully executed our largest
product innovation launch in the Company’s history, Omni-Heat
Infinity. This next evolution of thermal-reflective warmth further
strengthens our portfolio of differentiated innovations while
providing exceptional warmth and value to consumers. We sup-
ported this product launch with a global marketing campaign
across traditional, social, and digital media outlets.
We also continued our successful partnership with Disney and
Lucas Film, with two Star Wars collections in 2021. The Out-
er Rim Collection was our first Star Wars collaboration for the
Spring season and it featured our iconic PFG Tamiami shirt.
The second Star Wars collection was inspired by the infamous
bounty hunter, Boba Fett, who is featured in a popular new
Disney Plus series. Consumer reception was incredible, with the
Boba Fett launch helping to drive the largest sales volume hour
in Columbia.com history. Since the partnership began, our Star
Wars collections have generated close to 3 billion earned media
impressions.
On the marketing front, we highlighted several unique collabo-
rations during the year. We featured NASCAR driver and brand
ambassador Bubba Wallace and renowned National Geographic
photographer Babak Tafreshi as they journeyed to the Utah
desert to photograph the night sky. Bubba’s passion for out-
door photography was taken to the next level, while relying on
Columbia gear to keep them warm. We also featured country
musician and brand ambassador Luke Combs as he found ad-
venture in the wide-open spaces of Montana with his wife and
friends. Led by a Columbia Sportswear adventure crew, they
explored some of Big Sky Country’s hidden gems during a series
of fishing, trap shooting, and quad-riding excursions.
This past September, we also announced a multi-year part-
nership with the USA Curling team. Curling is one of the most
watched sports during the winter Olympics and our logo
and uniforms were prominently displayed on the U.S. teams
throughout the event.
As we look ahead, the Columbia brand’s differentiated innova-
tion, value proposition and outdoor heritage, uniquely positions
the company to unlock its vision to be the number one outdoor
brand in the world.
SOREL net sales increased 9 percent to $321 million and
would have been even higher had it not been for supply chain
constraints that limited product availability. SOREL’s successful
evolution to a year-round function-first fashion footwear brand
is evident in the breadth of popular non-insulated styles. We are
particularly excited about SOREL’s sneaker business, which has
seen recent success in a growing multi-billion-dollar category.
This has been an amazing transformation for a brand that we
paid less than $10 million for over 20 years ago. Given the
momentum of the brand, as well as our investments in demand
creation, we see a clear path to SOREL becoming a billion-
dollar brand.
R E G I O N A L
P E R F O R M A N C E
2021 REGIONAL
GROWTH HIGHLIGHTS
NET SALES GROWTH VS. PRIOR YEAR
TWELVE MONTHS ENDED DECEMBER 31, 2021
( GROWTH CONSTANT-CURRENCY AND AS REPORTED )
CONSTANT
CURRENCY
( $US )
US
+28%
CANADA
+18%
EMEA
+25%
LAAP
+8%
AS REPORTED ( $US )
US
+28%
CANADA
+25%
EMEA
+28%
LAAP
+10%
*NON-GAAP MEASURE
Reviewing 2021 net sales by geographic region, net sales growth
primarily reflects higher overall consumer demand as we anni-
versary the severe pandemic disruptions and store closures that
occurred 2020. With that being said, several regions continued to
experience disruptions at various points during 2021, as gov-
ernment efforts to contain the virus impacted store traffic and
consumer demand.
U.S. net sales increased 28 percent to $2.06 billion in 2021,
including a low-40 percent increase in our DTC business and a
high-teens percent increase in our wholesale business.
Net sales outside of the U.S. increased 19 percent (15 percent
constant-currency) to $1.07 billion in 2021 and represented 34
percent of total net sales.
Latin America and Asia Pacific (“LAAP”) net sales increased 10
percent (8 percent constant-currency) to $465 million in 2021.
Europe, Middle East and Africa (“EMEA”) net sales increased 28
percent (25 percent constant-currency) to $382 million in 2021,
with increases in both our Europe-direct and EMEA distributor
businesses.
Canada net sales increased 25 percent (18 percent constant-cur-
rency) to $219 million in 2021.
prAna net sales increased 8 percent to $142 million in 2021,
primarily reflecting higher wholesale and DTC brick & mortar
sales as we lapped the prior year order cancellations and store
closures. In 2021, we appointed a new leadership team to
sharpen the brand focus and drive omni-channel growth.
Mountain Hardwear was our fastest growing brand in 2021,
increasing 33 percent to $106 million. This growth reflects, the
success of new products and added doors with strategic retail
partners which fueled high quality growth and robust margin
performance. Brand leadership is keenly focused on solidifying
the brand’s identity, growing brand awareness and investing in
talent to further strengthen the brand team.
Strategic Initiatives
2021 was a transition year. In early 2021, we reinstated our
pre-pandemic capital allocation strategy. We transitioned from
executing our cost containment efforts required during the
pandemic, to focusing on growth opportunities and strategic
investments. In 2022, we are planning to continue investing in
several areas of the business to enhance capabilities and fuel
growth. On the technology front, we are investing in our digital
and analytics capabilities to leverage customer data, enhance
the consumer experience across our platforms, and drive effi-
ciencies throughout the organization. We are also augmenting
our supply chain capabilities to expand distribution capacity,
improve inventory management, and adapt to shifts in our sales
mix. To leverage our compelling brand portfolio and to connect
with consumers, we are planning to further increase our invest-
ment in demand creation. We are also planning to selectively
open new DTC brick & mortar stores.
We remain committed to driving sustainable and profitable
long-term growth and investing in our strategic priorities to:
• drive global 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 support-
•
ing processes and systems; and
invest in our people and optimize our organization across
our portfolio of brands.
In addition to driving returns for our shareholders, we remain
committed to our core value of “doing the right thing”. I en-
courage you to review our most recent Corporate Responsibility
report posted to our website which highlights our strategy and
recent accomplishments that we’ve made empowering people,
sustaining places and promoting responsible practices. We
recognize our commitment to “doing the right thing” through
our Environmental, Social and Governance (“ESG”) efforts which
have long been embedded in various functions at the Company.
In 2021 we developed a formal internal ESG governance struc-
ture in an effort to coordinate our efforts and help the enterprise
be responsive, collaborative, and enable action where needed.
As we look ahead, I’m encouraged by the strong consumer
demand we see for our products and believe that our mission to
connect active people with their passions is even more import-
ant and relevant than ever before. I’m confident we have the
right strategy to unlock the significant growth opportunities we
see across the business.
Thank you for your continued confidence and support.
Sincerely,
Timothy P. Boyle
Chairman, President and Chief Executive Officer
This letter contains forward-looking statements. Actual results may differ
materially from those projected in these forward-looking statements as a
result of a number of risks and uncertainties, including those described in the
Company’s Annual Report on Form 10-K for the year ended December 31,
2021, and subsequent periodic reports, under the heading “Risk Factors.”
This letter includes references to constant-currency net sales, which is a
non-GAAP financial measure, to provide a framework to assess how the
business performed excluding the effects of changes in the exchange rates
used to translate net sales generated in foreign currencies into U.S. dollars.
We provide a reconciliation of constant-currency net sales to net sales as
reported under U.S. GAAP in the Company’s Annual Report on Form 10-K for
the year ended December 31, 2021.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
—————————————————————
FORM 10-K
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2021
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from_______to_______
—————————————————————
Commission file number 000-23939
—————————————————————
COLUMBIA SPORTSWEAR COMPANY
(Exact name of registrant as specified in its charter)
—————————————————————
Oregon
(State or other jurisdiction of incorporation or organization)
93-0498284
(IRS Employer Identification Number)
14375 Northwest Science Park Drive, Portland Oregon 97229
(Address of principal executive offices and zip code
(503) 985-4000
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Common Stock
Trading Symbol(s)
Name of each exchange on which registered
COLM
The NASDAQ Global Select Market
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes ☒ No ☐
Yes ☐ No ☒
Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of
Regulation S-T during the preceding 12 months (or for such short period that the registrant was required to submit such files)
Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth
company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
Non-accelerated filer
☒
☐
Accelerated filer
Smaller reporting company
Emerging growth company
☐
☐
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the Exchange Act
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.7262(b)) by the registered public accounting firm that prepared or issued its audit report.
☐
☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒
The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant as of June 30, 2021, based upon the closing price of the common
stock on the last business day of the registrant's most recently completed second fiscal quarter, was $3,280,599,605.
The number of shares outstanding of the registrant's common stock on February 11, 2022 was 64,513,156.
Portions of the registrant's proxy statement related to its 2022 Annual Shareholders' Meeting to be filed subsequently are incorporated by reference into Part III of this Annual
Report on Form 10-K. Except as expressly incorporated by reference, the registrant's proxy statement related to its 2022 Annual Shareholders' Meeting shall not be deemed to be
part of this report.
TABLE OF CONTENTS
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
PART I
Item 1.
Item 1A.
Item 1B.
Item 2.
Item 3.
Item 4.
PART II
Item 5.
Item 6.
Item 7.
Item 7A.
Item 8.
Item 9.
Item 9A.
Item 9B.
PART III
Item 10.
Item 11.
Item 12.
Item 13.
Item 14.
PART IV
Item 15.
Item 16.
Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Information About Our Executive Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unresolved Staff Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mine Safety Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases
of Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[Reserved] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Management's Discussion and Analysis of Financial Condition and Results of Operations . .
Quantitative and Qualitative Disclosures About Market Risk . . . . . . . . . . . . . . . . . . . . . . . .
Financial Statements and Supplementary Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Report of Independent Registered Public Accounting Firm (PCAOB 34) . . . . . . . . . . . . . . .
Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Comprehensive Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Index to Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure . .
Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Directors, Executive Officers and Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . .
Executive Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Certain Relationships and Related Transactions, and Director Independence . . . . . . . . . . .
Principal Accountant Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exhibits, Financial Statement Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Form 10-K Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K
SPECIAL NOTE REGARDING
FORWARD LOOKING STATEMENTS
This annual report contains forward-looking statements within the meaning of federal securities laws. Forward-looking
statements often use words such as "will", "anticipate", "estimate", "expect", "should", "may" and other words and terms of
similar meaning or reference future dates. Forward-looking statements include any statements related to our expectations
regarding future performance or market position, including any statements regarding outdoor participation by consumers,
the casualization of the apparel and footwear markets, the promotional environment, wholesale trade terms, inventories,
consumer spending and preferences, store traffic, ocean freight charges, inventory receipts, logistics constraints,
manufacturing constraints, labor availability, inflationary pressures, consumer expectations, our short and long-term cash
needs and our ability to meet those needs, amortization expenses and maturities of liabilities.
These forward-looking statements, and others we make from time to time expressed in good faith, are believed to have a
reasonable basis; however, each forward-looking statement involves risks and uncertainties. Many factors may cause actual
results to differ materially from projected results in forward-looking statements, including the risks described in Item 1A of
this Annual Report on Form 10-K. Forward-looking statements are inherently less reliable than historical information. Except
as required by law, we do not undertake any duty to update forward-looking statements after the date they are made or to
conform them to actual results or to changes in circumstances or to reflect changes in events, circumstances or
expectations. New factors emerge from time to time and it is not possible for us to predict or assess the effects of all such
factors or the extent to which any factor, or combination of factors, may cause results to differ materially from those
contained in any forward-looking statement.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | i
PART I
ITEM 1. BUSINESS
GENERAL
Founded in 1938 in Portland, Oregon, as a small, family-owned, regional hat distributor and incorporated in Oregon in 1961,
Columbia Sportswear Company has grown to become a global leader in designing, developing, marketing, and distributing
outdoor, active and everyday lifestyle apparel, footwear, accessories, and equipment products.
Unless the context indicates otherwise, the terms "we," "us," "our," "the Company," and "Columbia" refer to Columbia
Sportswear Company, together with its wholly owned subsidiaries and entities in which it maintained a controlling financial
interest.
BRANDS AND PRODUCTS
We connect active people with their passions through our four well-known brands by designing, developing, marketing, and
distributing our outdoor, active and everyday lifestyle apparel, footwear, accessories and equipment products to meet the
diverse needs of our customers and consumers.
Columbia® | Founded in 1938, our Columbia brand unlocks the outdoors for everyone. Our Columbia brand is known
for authentic, high-value outdoor apparel, footwear, accessories and equipment products designed with innovation,
function, and quality suited for all seasons, activities and locations.
SOREL® | Acquired in 2000, our SOREL brand creates powerful footwear for unstoppable individuals. Our SOREL
brand provides premium, durable and design-driven footwear and accessories primarily to fashion-forward savvy
women, as well as to men and youth consumers.
Mountain Hard Wear® | Acquired in 2003, our Mountain Hardwear brand exists to make gear that works, because out
in the mountains, it matters for climbers. Our Mountain Hardwear brand offers premium apparel, accessories and
equipment designed to meet the high-performance needs of climbing enthusiasts and to satisfy climbers' everyday
lifestyles.
prAna® | Acquired in 2014, our prAna brand focuses on clothing for positive change, in an effort to positively impact
the planet and its people. Our prAna brand provides consumers with clothes that tell a story. From city streets to
mountain peaks, prAna outfits adventurous spirits in stylish, sustainable and versatile gear.
Across our diverse portfolio of brands, our products have gained recognition for their innovation, quality and performance.
Our products incorporate the cumulative design, fabrication, fit, and construction technologies that we have pioneered over
several decades and continue to innovate. Our apparel, accessories and equipment products are designed to be used
during a wide variety of activities, such as skiing, snowboarding, hiking, climbing, mountaineering, camping, hunting, fishing,
trail running, water sports, yoga, golf, and adventure travel. Our footwear products include durable, lightweight hiking boots,
trail running shoes, rugged cold weather boots for activities on snow and ice, sandals and shoes for use in water activities,
and function-first fashion footwear and casual shoes for everyday use.
SALES AND DISTRIBUTION
We sell our products in approximately 90 countries and operate in four geographic segments: United States ("U.S."), Latin
America and Asia Pacific ("LAAP"), Europe, Middle East and Africa ("EMEA"), and Canada. Each geographic segment
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 1
operates predominantly in one industry: the design, sourcing, marketing, and distribution of outdoor, active and everyday
lifestyle apparel, footwear, accessories, and equipment products.
We sell our products through a mix of distribution channels. Our wholesale distribution channel consists of small,
independently operated specialty outdoor and sporting goods stores, regional, national and international sporting goods
chains, large regional, national and international department store chains, internet retailers, and international distributors
where we generally do not have our own direct operations. Our direct-to-consumer ("DTC") distribution channel consists of
our own network of branded and outlet retail stores, brand-specific e-commerce sites, and concession or franchise based
arrangements with third-parties at branded, outlet and shop-in-shop retail locations in the LAAP and EMEA regions. In
addition, we earn revenue through licensing certain of our trademarks across a range of apparel, accessories, equipment,
footwear, and home products.
U.S.
U.S. is our largest segment and provides apparel, accessories and equipment products through our Columbia, Mountain
Hardwear, and prAna brands and footwear products through our Columbia and SOREL brands. These products are sold by
our U.S. wholesale and DTC businesses. We have nearly 2,200 wholesale customers in the U.S. In 2021, our two largest
U.S. wholesale customers accounted for approximately 12% of U.S. net sales, or less than 10% individually. At December
31, 2021, we directly operated 142 retail stores.
We distribute the majority of our U.S. products from distribution centers that we own and operate in Portland, Oregon and
Robards, Kentucky, as well as through a third-party logistics company that operates a distribution center in Louisville,
Kentucky. We also arrange to have products directly shipped from contract manufacturers to wholesale customer-
designated facilities in the United States.
LAAP
LAAP provides apparel, accessories and equipment products through our Columbia, Mountain Hardwear and prAna brands
and footwear products through our Columbia and SOREL brands. These products are sold by our wholly-owned
subsidiaries in Japan, Korea and China, and through distributors in other LAAP markets. We have over 300 wholesale
customers, including distributors, in LAAP. In 2021, our five largest LAAP wholesale customers accounted for approximately
10% of LAAP net sales, or less than 10% individually. At December 31, 2021, we directly operated 277 retail stores, and
maintained 29 concession and 69 franchise based arrangements with third-parties.
We distribute LAAP products through third-party logistics companies that operate distribution centers near Tokyo, Seoul,
and Shanghai. In addition, we utilize various distributors in the LAAP region. The vast majority of our products sold to
distributors are shipped directly to the distributors from the contract manufacturers from which we source our products.
EMEA
EMEA provides apparel, accessories and equipment products through our Columbia, Mountain Hardwear and prAna brands
and footwear products through our Columbia and SOREL brands. These products are sold by our Europe-direct and EMEA
distributor businesses. We have over 3,450 wholesale customers, including distributors, in EMEA. In 2021, our largest
EMEA wholesale customer accounted for approximately 17% of EMEA net sales. At December 31, 2021, we directly
operated 26 retail stores and maintained 21 concession-based arrangements with third-parties.
We distribute the majority of EMEA products from a distribution center that we own and operate in France. In addition, we
utilize various distributors in the EMEA region. The vast majority of our products sold to distributors are shipped directly to
the distributors from the contract manufacturers from which we source our products.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 2
CANADA
Canada provides apparel, accessories and equipment products through our Columbia, Mountain Hardwear and prAna
brands and footwear products through our Columbia and SOREL brands. These products are sold by our Canada
wholesale and DTC businesses. We have nearly 550 wholesale customers in Canada. In 2021, our two largest Canada
wholesale customers accounted for approximately 24% of Canada net sales, or approximately 14% and 10% individually. At
December 31, 2021, we directly operated 10 retail stores.
We distribute the majority of Canada products from a distribution center that we own and operate in Ontario.
See Item 7 and Item 8 in this Annual Report on Form 10-K for further discussion regarding our reportable segments.
SEASONALITY AND VARIABILITY OF BUSINESS
Our business is affected by the general seasonal trends common to the industry, including seasonal weather and
discretionary consumer shopping and spending patterns. Our products are marketed on a seasonal basis, and our sales are
weighted substantially toward the third and fourth quarters, while our operating costs are more equally distributed
throughout the year.
PRODUCT DESIGN AND INNOVATION
We are committed to designing innovative and functional products for consumers who participate in a wide range of
outdoor, active and everyday lifestyle activities, enabling them to enjoy those activities longer and in greater comfort. We
distinguish our products in the marketplace by placing significant value in the design and fit, including the overall
appearance and image, and technical performance features of our products.
Our team of specialists both lead our internal research and development efforts and work closely with independent suppliers
to conceive, develop and commercialize innovative technologies and products to provide the unique performance benefits
desired by consumers. We utilize our working relationships with specialists in the fields of chemistry, biochemistry,
engineering, industrial design, materials research, graphic design, and other related fields, along with consumer insights
and feedback, to develop and test innovative performance products, processes, packaging, and displays. These efforts,
coupled with our drive for continuous improvement, represent key factors in the ongoing success of our products.
MANUFACTURING AND SOURCING
We seek to substantially limit our invested capital and avoid the costs and risks associated with large production facilities
and the associated large labor forces; therefore, we do not own, operate or manage manufacturing facilities. The majority of
our products are manufactured by contract manufacturers located outside the United States. We establish and maintain
long-term relationships with key manufacturing partners, but generally do not maintain formal long-term manufacturing
volume commitments. The use of contract manufacturers greatly increases our production capacity, maximizes our flexibility
and improves our product pricing.
We value legal, ethical and fair treatment of people involved in manufacturing our products. Independent contractors
manufacturing our products are subject to our standards of manufacturing practices to facilitate decent, safe and humane
working conditions, as well as promote ethical business practices. We have programs in place to monitor manufacturer
practices and assess alignment against these standards.
We maintain seven manufacturing liaison offices in six Asia Pacific countries. Our personnel in these offices monitor
production at our contract manufacturers' facilities to ensure our products are manufactured to our specifications. The
physical location of our employees in these regional offices enhances our ability to monitor contract manufacturers for
compliance with our policies, procedures and standards regarding quality, delivery, pricing, and labor practices. The design
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 3
of our quality assurance process seeks to ensure that our products meet and maintain our quality standards and product
reputation.
In 2021, our apparel, accessories and equipment products were manufactured in 13 countries. In 2021, manufacturers in
Vietnam, Bangladesh, and Indonesia produced approximately 45%, 15% and 15%, respectively, of these products. Five of
the largest contract manufacturers account for approximately 35% of our apparel, accessories and equipment production,
with the largest manufacturer accounting for nearly 10%.
In 2021, our footwear products were manufactured in six countries. In 2021, manufacturers in Vietnam and China produced
approximately 85% and 10%, respectively, of these products. Five of the largest contract manufacturers account for
approximately 85% of our footwear production, with the largest manufacturer accounting for approximately 30%, three
manufacturers accounting for approximately 15% each and one manufacturer accounting for approximately 10%.
Raw materials for the manufacturing of our apparel, accessories, equipment, and footwear products are primarily sourced
from Asia and are purchased directly by our contract manufacturers.
MARKETING
Our portfolio of brands enables us to target a wide range of consumers with differentiated products. Our marketing supports
and enhances our competitive position in the marketplace, drives global alignment through seasonal initiatives, builds brand
equity, raises global brand relevance and awareness, infuses our brands with excitement, and, most importantly, stimulates
worldwide consumer demand for our products.
Our integrated marketing efforts deliver consistent messages about the performance benefits, features and styles of our
products within each of our brands and their different target consumers. We utilize a variety of means to deliver our
marketing messages, including digital marketing, social media interactions, television and print publications, experiential
events, brand ambassadors, enhanced product store displays, and consumer focused public relations efforts. In addition,
we reinforce our brands' marketing messages with our key wholesale customers by utilizing digital platforms, television,
radio, print and advertising campaigns, as well as in-store branded visual merchandising display tools and favorable product
presentation.
We operate branded e-commerce and marketing sites and maintain an active presence on a variety of global social media
platforms. We authorize and encourage our international distributors to connect with consumers by operating e-commerce
and marketing sites and maintaining a presence on social media platforms. Digital marketing and social media engagement
increase our brands' global ability to build strong emotional connections with consumers through consistent, brand-
enhancing content. Our digital media connects our consumers to brand content and products, while facilitating their direct
product purchases or directing them to nearby retail locations.
INTELLECTUAL PROPERTY
Our trademarks create a market for our products, identify our company and differentiate our products from competitors'
products. We own many trademarks, including Columbia Sportswear Company®, Columbia®, SOREL®, Mountain Hard
Wear®, prAna®, the Columbia diamond shaped logo, the Mountain Hardwear nut logo, the SOREL polar bear logo, and the
prAna sitting pose logo, as well as many other trademarks relating to our brands, products, styles, and technologies.
Our design and utility patents describe the technologies, processes and designs incorporated into many of our most
important products. We file applications for United States and foreign patents to protect inventions, designs and
enhancements that we deem to have commercial value. We have design and utility patents, which expire at various times,
as well as pending patent applications in the United States and other countries.
We vigorously protect these proprietary rights against counterfeit reproductions and other infringing activities.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 4
COMPETITION
The markets for outdoor, active and everyday lifestyle apparel, footwear, accessories, and equipment products are highly
competitive and we face significant competition from numerous companies. Our competition includes large companies with
significant financial, marketing and operational resources, small companies with limited resources but deep entrenchment in
their local markets, and other branded competitors. We also face competition from our wholesale customers who, under
their own private brand names, produce and distribute similar products to our target consumers through their own retail
stores and e-commerce businesses. We identify our primary competitive factors in the markets for outdoor, active and
everyday lifestyle products to be brand strength, product innovation, design, functionality, durability, and price, as well as
effective marketing and delivery of product in alignment with consumer expectations.
GOVERNMENT REGULATION
As a company with global operations, we are, and our products are, subject to the laws of the United States and multiple
foreign jurisdictions in which we operate and the rules and regulations of various governing bodies, which may differ among
jurisdictions, including laws and regulations concerning product safety, environmental standards, trade, information security,
privacy, labor and employment, health, marketing, competition, and safety.
See Item 1A of this Annual Report on Form 10-K for more information of risks relating to these laws, rules, and regulations.
HUMAN CAPITAL
We believe that attracting and retaining exceptional talent strengthens our enterprise and propels us as a leader in product
innovation. As part of these efforts, we strive to offer a competitive compensation and benefits program, foster a community
where everyone feels included and empowered to do their best work and promote employee well-being.
At December 31, 2021, our employee workforce of approximately 8,325 employees was comprised of approximately 4,500
full-time and part-time retail employees, 925 distribution center employees and 2,900 corporate employees. From December
31, 2020 to December 31, 2021, we had an overall employee turnover rate of approximately 58%, impacted by
approximately 87% and 61% turnover rate in our retail and distribution employee base, respectively. Approximately 31% of
our workforce was located outside of the United States at December 31, 2021.
Compensation and Benefits
Our compensation plans aim to reward performance. We offer competitive wages and, to align the interest of our
management with those of our shareholders, shares of our common stock through a stock incentive plan. Globally, we offer
employees affordable, competitive and comprehensive benefit programs. In the United States, for our largest employee
base, we sponsor comprehensive medical, dental, vision and health savings or flexible spending account plans. We also
provide 401(k) plan matching of employee contributions, paid time off, an employee assistance plan, life insurance, and
short-term and long-term disability insurance.
Diversity, Equity and Inclusion
At December 31, 2021, our global workforce was self-disclosed as 42% male, 55% female, less than 1% non-binary and 2%
undisclosed or chose not to identify. In the United States, the self-disclosed ethnicity of our workforce, including retail and
distribution employees, was 60% White, 7% Asian, 19% Hispanic or Latino, 7% Black, less than 1% American Indian or
Alaskan Native, less than 1% Native Hawaiian or other Pacific Islander, 4% two or more races and 2% undisclosed or chose
not to identify. A Diversity, Equity and Inclusion Leadership Team was formed in 2020 to lead our efforts toward a more
diverse, equitable, and inclusive workplace. This team focuses on supporting strategies and efforts to advance progress in
the following categories: listening and learning, diversifying talent, creating and sponsoring opportunities, and being a force
for good.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 5
Employee Well-Being
We align our employee programs to the five elements of well-being: physical health, career, social and emotional health,
financial, and community.
For more information on our efforts to support our workforce, see our latest Corporate Responsibility Report at http://
columbia.com/corporate-responsibility.
AVAILABLE INFORMATION
free of charge on or
We make available
investor relations section on our website at http://
the
investor.columbia.com/sec-filings our proxy statements, annual reports on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K, and amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the
Exchange Act as soon as reasonably practicable after we file these materials with the Securities and Exchange Commission
("SEC").
through
The content on any website referred to in this Annual Report on Form 10-K is not incorporated by reference in this annual
report unless expressly noted.
INFORMATION ABOUT OUR EXECUTIVE OFFICERS
The following table sets forth information about our executive officers. All information is as of the date of the filing of this
report.
Name
Timothy P. Boyle . . . .
Joseph P. Boyle . . . . .
Peter J. Bragdon . . . .
Lisa A. Kulok . . . . . . .
Skip Potter . . . . . . . .
Tim Sheerin . . . . . . . .
Jim A. Swanson . . . . .
Craig Zanon . . . . . . .
Age Position
72
Chairman, President and Chief Executive Officer
41
59
56
51
57
47
62
Executive Vice President, Columbia Brand President
Executive Vice President, Chief Administrative Officer, General Counsel, and Secretary
Executive Vice President, Chief Supply Chain Officer
Executive Vice President, Chief Digital Information Officer
Senior Vice President, Global Wholesale
Executive Vice President, Chief Financial Officer
Senior Vice President, Emerging Brands
Timothy P. Boyle joined the Company in 1971 as General Manager, served as the Company's President from 1988 to 2015
and reassumed the role in 2017. Mr. Boyle has served as Chief Executive Officer since 1988. He has served as a member
of the Board of Directors since 1978, and as Interim Chairman of the Board of Directors from November 2019 until his
appointment as Chairman of the Board of Directors in January 2020. Mr. Boyle is also a member of the Board of Directors of
Northwest Natural Holding Company (NYSE: NWN), and its subsidiary, Northwest Natural Gas Company. Mr. Boyle is a
third-generation member of the Company's founding Boyle family, the father of Joseph P. Boyle, and the son of Gertrude
Boyle, who served as the Chairman of the Board of Directors from 1970 until her death in 2019.
Joseph P. Boyle joined the Company in 2005 and has served in numerous roles of increasing leadership and responsibility,
including General Merchandising Manager of Outerwear, Accessories, Equipment, Collegiate and Licensing, Vice President
of Apparel Merchandising, and Senior Vice President of Columbia Brand Merchandising & Design. He was promoted to
Executive Vice President, Columbia Brand President in 2017. Prior to joining the Company, Mr. Boyle served in a business
development role for Robert Trent Jones II Golf Course Architects. Mr. Boyle is a fourth-generation member of the
Company's founding Boyle family, and the son of Timothy P. Boyle.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 6
Peter J. Bragdon joined the Company in 1999 and served as Senior Counsel and Director of Intellectual Property until
January 2003. From 2003 to 2004, Mr. Bragdon served as Chief of Staff in the Oregon Governor's office. Mr. Bragdon
returned to Columbia in 2004 as Vice President, General Counsel and Secretary, was named Senior Vice President of
Legal and Corporate Affairs, General Counsel and Secretary in 2010 and Executive Vice President, Chief Administrative
Officer, General Counsel and Secretary in 2015. In 2017, he assumed oversight of the Company's international distributor
business. Prior to joining the Company, Mr. Bragdon served as an attorney in the corporate securities and finance group at
Stoel Rives LLP, and Special Assistant Attorney General for the Oregon Department of Justice.
Lisa A. Kulok joined the Company in 2008 as Senior Director of Global Planning. She was promoted to Senior Vice
President of Global Supply Chain Operations in 2015, was named Senior Vice President of Global Supply Chain Operations
and Manufacturing in July 2020 and Executive Vice President, Chief Supply Chain Officer in November 2020. Prior to
joining the Company, Ms. Kulok held various leadership positions at Nike, Inc, including USA Apparel Marketplace Planning
Director and Director of Regional Planning.
Skip Potter joined the Company in 2021 as Executive Vice President, Chief Digital Information Officer. Prior to joining the
Company, Mr. Potter held various leadership positions, including Chief Technology Officer and Managing Vice President of
Engineering with Nike, Inc., as well as Vice President of Technology Innovation with Capital One, and CIO/CTO for British
Telecommunication's Enterprise Group.
Tim Sheerin joined the Company in January 2021 as Senior Vice President, US Wholesale Sales. He was promoted to
Senior Vice President, Global Wholesale in October 2021. Prior to joining the Company, Mr. Sheerin held various leadership
positions at Nike, Inc., including Vice President, North America Sales, Vice President of Global Sales, Nike Sportswear and
Managing Director/General Manager of Nike Korea.
Jim A. Swanson joined the Company in 2003 and has served in numerous roles of increasing responsibility during his
tenure, being named Vice President of Finance in 2015 and promoted to Senior Vice President, Chief Financial Officer in
2017 and to Executive Vice President and Chief Financial Officer in 2020. Prior to joining the Company, Mr. Swanson
served in a variety of financial planning and analysis, tax, and accounting roles, including senior financial analyst at
Freightliner Corporation and at Tality Corporation, and as a senior tax and business advisory associate at Arthur Andersen.
Craig Zanon joined the Company in 2021 as Senior Vice President, Emerging Brands. Prior to joining the Company, Mr.
Zanon spent more than 20 years with Nike, Inc. and held various leadership roles, including Vice President and General
Manager of Global Basketball, as well as Vice President of U.S. Footwear and General Manager for the Americas.
Item 1A. RISK FACTORS
In addition to the other information contained in this Annual Report on Form 10-K, 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.
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
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 7
•
•
•
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.
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 operational 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. 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. The magnitude by which global
weather patterns trend warmer will influence the extent to which consumer and customer demand for our products
will be negatively affected.
•
•
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. These related business impacts have already occurred at certain of our
wholesale customers. 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 choose (and have chosen
in the past) 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.”
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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 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 or
third-party logistics providers are unable to supply or deliver products when we need them, we may experience and have
been experiencing inventory shortages, which may prevent us from fulfilling product orders resulting in lost sales, delay
shipments of product, negatively affect our wholesale customer and consumer relationships, result in increased costs to
expedite production and delivery, or diminish our ability to build brand loyalty.
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 and our
competitors may obtain production capacities that effectively limit or eliminate the availability of our contract manufacturers.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 9
If we are unable to obtain necessary production capacities, we may be unable to meet consumer demand, resulting in lost
sales, as occurred in 2021.
In addition, contract manufacturers may fail to perform as expected. If a contract manufacturer fails to ship orders in a timely
manner, we could experience supply disruptions that result in missed delivery deadlines, which may cause our customers to
cancel their orders, refuse to accept deliveries or demand a reduction in purchase 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 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, 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 of and Prices for Raw Materials We Use in Our Products Could Have a Material
Adverse Effect on Our Revenues, Costs, Gross Margins and Profitability.
Our products are derived from raw materials that are subject to both disruptions to supply availability and price volatility. If
there are supply disruptions or price increases for raw materials we use in our products (as is currently the case) and we are
unable to obtain sufficient raw materials to meet production needs or offset rising costs by increasing the price of our
products or achieving efficiency improvements, we could experience negative impacts to our sales and profitability.
For Certain Materials We Depend on a Limited Number of Suppliers, Which May Cause Increased Costs or
Production Delays.
As an innovative company, some of our materials are highly technical and/or proprietary and may be available from only
one source or a very limited number of sources. 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 Third-Party Logistics Providers and Our and Third-Party Distribution Facilities.
The majority of our products are manufactured outside of our principal sales markets, which requires these products to be
consolidated and transported, sometimes over large geographical distances. A small number of third-party logistics
providers currently consolidate, deconsolidate and/or transload almost all of our products. Any disruption in the operations
of these providers or changes to the costs they charge, due to capacity constraints, volatile fuel prices or otherwise, could
materially impact our sales and profitability. A prolonged disruption in 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. One of our third-party logistics providers, Expeditors International of Washington Inc.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 10
(Expeditors", NASDAQ: EXPD), has announced that it was the subject of a targeted cyberattack resulting in a shut-down of
systems and a limited ability to conduct operations. The impact of the Expeditors' limited ability to conduct operations on our
business, results of operations and financial condition is unknown at this time.
In addition, the ability to move products over larger geographical distances could be (as is currently the case) constrained
by ocean, air and trucking cargo capacity, or disrupted by limitations at ports or borders. These constraints and disruptions
could hinder our ability to satisfy demand through our wholesale and DTC businesses, and we may miss delivery deadlines,
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 (as is currently the
case) adversely affect our costs, which we may not be able to offset through price increases or decreased promotions.
We receive our products from 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.
We also receive and distribute our products through third-party operated distribution facilities internationally and
domestically. We depend on these third-parties to manage the operation of their distribution facilities as necessary to meet
our business needs. If the third-parties fail to manage these responsibilities, our international and domestic distribution
operations could face significant disruptions.
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-
parties, the development or expansion of additional distribution capabilities and services, and the timely performance of
services by third-parties, including those involved in moving products to and from our distribution facilities and facilities
operated by third-parties.
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.
Initiatives to Upgrade Our Business Processes and Information Technology Systems to Optimize Our
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. Transitioning to these new or upgraded processes and systems requires significant
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 11
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 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 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 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 investments in our digital capabilities and our DTC operations, including new stores. (See “Initiatives to Upgrade Our
Business Processes and Information Technology Systems to Optimize Our Operational and Financial Performance Involve
Many Risks Which Could Result in, Among Other Things, Business Interruptions, Higher Costs and Lost Profits”). 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 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.
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 technology 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 could 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 may cause us to incur significant time and expense.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 12
If we and/or our cloud-based solution providers are not successful in preventing or effectively responding to 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 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. Any
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. While we maintain cyber liability insurance policies for
coverage in the event of a cybersecurity incident, we cannot be certain that our existing coverage will continue to be
available on acceptable terms or will be available, and in sufficient amount, to cover the potentially significant losses that
could result from a cybersecurity incident or that the insurer will not deny coverage as to any future claims.
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. Non-U.S. data privacy and data security laws, various U.S.
federal and state laws and other information privacy and security standards may be applicable to us. Significant legislative,
judicial or regulatory changes have been and could be issued in the future. As new requirements are issued, new processes
must be implemented to ensure compliance. In addition, previously implemented processes must be continually refined.
This work 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
changing landscape. Limitations on the use of data may also impact our future business strategies. Additionally, violations
of these requirements could result in significant penalties or litigation from consumers.
In June 2021, the European Commission finalized recommendations in relation to cross border data transfers and published
new versions of the Standard Contractual Clauses. The new requirements may cause us to incur costs and expenses in
order to comply and may impact the transfer of personal data throughout the Company and to third parties.
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 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.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 13
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 to 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.
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.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 14
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, the CARES Act, and other recent legislation may cause actual amounts to differ from our provisional estimates.
In addition, proposals to reform U.S. and foreign tax laws could significantly impact how U.S. multinational corporations are
taxed on foreign earnings and could increase the U.S. corporate tax rate. Although we cannot predict whether or in what
form these proposals will pass, several of the proposals considered, if enacted into law, could have an adverse impact on
our effective tax rate, income tax expense and cash flows.
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, climate-change regulations, the effects of fiscal and political
crises and political and economic disputes, changes in diverse consumer preferences, foreign currency exchange rate
fluctuations, managing a diverse and widespread workforce, political unrest, terrorist acts, military operations, disruptions or
delays in shipments, disease outbreaks, 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, 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. In addition, goods suspected of being manufactured with forced labor could
be blocked from importation into the U.S., which could materially impact sales.
In connection with the United Kingdom's recent exit from the European Union (commonly referred to as "Brexit"), on
December 24, 2020, the European Union ("E.U.") and the United Kingdom ("U.K.") reached an agreement, the E.U.-U.K.
Trade and Cooperation Agreement, to govern aspects of the relationship of the E.U. and U.K. following Brexit. As a result of
no longer having "free circulation" between the U.K. and the E.U., we may, and have incurred additional duties. These
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 15
additional costs may be mitigated, to the extent we are able, to achieve favorable interpretations and/or rulings from the
U.K.'s Her Majesty's Revenue and Customs.
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 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 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.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 16
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 Our Ability to Meet Our Labor Needs 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. The foregoing includes potential impacts to our business as a result of the International Longshore &
Warehouse Union negotiations. 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, absenteeism, prevailing wage
rates, changing demographics, parental responsibilities, health and other insurance costs, adoption of new or revised
employment and labor laws and regulations, and fear of contracting COVID-19. Our ability to source, distribute and sell
products in a timely and cost-effective manner may be (and has been) negatively affected to the extent we experience these
factors. 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 pandemic since 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
of Our Financing 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 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 and/or supply chain
disruptions 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
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 17
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.
Our credit agreements have various financial and other covenants. If an event of default were to occur, the lenders could,
among other things, declare outstanding amounts due and 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.
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.
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, Climate Change, 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,
climate change and 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
preferences and spending that may negatively impact our operating results and financial condition.
An Outbreak of Disease or Similar Public Health Threat, 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.
An outbreak of disease or similar public health threat, 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, financial condition
and operating results, including in the form of lowered net sales and the delay of inventory production and fulfillment in
impacted regions. 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 the
COVID-19 pandemic may (and in many cases, have):
•
Cause disruptions in the supply chain, including the ability to produce and deliver product as expected (see “Our
Reliance on Contract Manufacturers, Including Our Ability to Enter Into Purchase Order Commitments with Them
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 18
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 Third-Party Logistics Providers and Our and Third-Party Distribution
Facilities”);
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");
Restrict the operation of our retail store operations and our ability to meet consumer demand at our stores (see
"Labor Matters, Changes in Labor Laws and Our Ability to Meet Our Labor Needs May Reduce Our Revenues
and Earnings" and "We May Not Realize Returns on Our Fixed Cost Investments in Our DTC Business
Operations");
Cause inflation and currency rate fluctuations (see “Fluctuations in Inflation and Currency Exchange Rates Could
Result in Lower Revenues, Higher Costs and/or Decreased Margins and 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");
Result in labor shortages, including as a result of any vaccine mandate or our return to work policies ("Labor
Matters, Changes in Labor Laws and Our Ability to Meet Our Labor Needs May Reduce Our Revenues and
Earnings");
Increase reliance by 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");
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");
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");
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”);
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”);
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 Our Ability to
Meet Our Labor Needs May Reduce Our Revenues and Earnings”);
•
•
•
•
•
•
•
•
•
•
•
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 19
•
•
•
•
Cause rapid changes to employment and tax law (see “Labor Matters, Changes in Labor Laws and Our Ability to
Meet Our Labor Needs May Reduce Our Revenues and Earnings”, and "We May Have Additional Tax Liabilities
or Experience Increased Volatility in Our Effective Tax Rate");
Impair our key personnel (see “We Depend on Key Personnel”);
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 providing testing; 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.
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,
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 20
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.
Certain Shareholders Have Substantial Control Over us and Are Able to Influence Corporate Matters.
At December 31, 2021, five related shareholders, The Gertrude Boyle Trust, Sarah A. Bany, Timothy P. Boyle, Joseph P.
Boyle, and Molly E. Boyle, controlled just under 50% of our common 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 E. Boyle are
able to exercise significant influence over all matters requiring shareholder approval. These holdings could be significantly
diminished (and with them the related effective control percentage) to satisfy any applicable estate or unrealized gains tax
obligations of holders.
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 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.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 21
ITEM 2. PROPERTIES
The following is a summary of principal properties owned or leased by us.
Location
Portland, Oregon
Portland, Oregon
Carlsbad, California
Richmond, California
Portland, Oregon
Robards, Kentucky
London, Ontario
Geneva, Switzerland
Strasbourg, France
Cambrai, France
Shanghai, China
Tokyo, Japan
Use
Corporate Headquarters
SOREL Headquarters
prAna Headquarters
Mountain Hardwear Headquarters
U.S. Distribution Center
U.S. Distribution Center
Canadian Operation and Distribution Center
Europe Headquarters
Europe Administrative Operation
Europe Distribution Center
LAAP China Headquarters
LAAP Japan Headquarters
Seoul, Korea
(1) A portion of the SOREL Headquarters is leased and the remainder is owned by the Company.
LAAP Korea Headquarters
Ownership
Owned
Leased/Owned (1)
Leased
Leased
Owned
Owned
Owned
Leased
Owned
Owned
Leased
Leased
Leased
In addition, as of December 31, 2021, we directly operated approximately 455 retail stores, the vast majority of which are
leased under a variety of arrangements, including long-term, short-term, and variable-payment leases. We also have
several leases globally for office space, warehouse facilities, storage space, vehicles, and equipment, among other things.
Refer to Note 9 in Item 8 of this Annual Report on Form 10-K for further lease-related disclosures.
ITEM 3.
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 condition, results of
operations or cash flows.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 22
PART II
Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY,
RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF
EQUITY SECURITIES
MARKET INFORMATION
Our common stock is traded on the NASDAQ Global Select Market under the symbol "COLM."
HOLDERS
At February 11, 2022, we had 262 shareholders of record, although we have a much larger number of beneficial owners,
whose shares of record are held by banks, brokers and other financial institutions
DIVIDENDS
Our current dividend policy is dependent on our earnings, capital requirements, financial condition, restrictions imposed by
our credit agreements, and other factors considered relevant by our Board of Directors. Quarterly dividends on our common
stock, when declared by our Board of Directors, are paid in March, May, August, and November.
Our Board of Directors approved a quarterly cash dividend of $0.30 per share, payable on March 21, 2022 to shareholders
of record on March 11, 2022.
PERFORMANCE GRAPH
The line graph below compares the cumulative total shareholder return of our common stock with the cumulative total return
of the Russell 1000 Index and Russell 1000 Textiles Apparel and Shoes Index for the period beginning December 31, 2016
and ending December 31, 2021. The graph and table assume that $100 was invested on December 31, 2016, and that any
dividends were reinvested. Historical stock price performance should not be relied on as indicative of future stock price
performance.
Comparison of 5 Year Cumulative Total Return
Assumes Initial Investment of $100
December 2021
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 23
Total Return Analysis
Year Ended December 31,
2016
2017
2018
2019
2020
2021
Columbia Sportswear Company . . . . . . . . . . . $ 100.00 $ 124.86 $ 147.61 $ 177.65 $ 155.49 $ 175.13
Russell 1000 Index . . . . . . . . . . . . . . . . . . . . . $ 100.00 $ 121.69 $ 115.87 $ 152.28 $ 184.20 $ 232.93
Russell 1000 Textiles Apparel and Shoes Index $ 100.00 $ 123.55 $ 126.99 $ 174.11 $ 217.14 $ 240.70
ISSUER PURCHASES OF EQUITY SECURITIES
Since the inception of our share repurchase program in 2004 through December 31, 2021, our Board of Directors has
authorized the repurchase of $1.5 billion of our common stock. Shares of our common stock may be purchased in the open
market or through privately negotiated transactions, subject to market conditions, and generally settle subsequent to the
trade date. The repurchase program does not obligate us to acquire any specific number of shares or to acquire shares over
any specified period of time. Under this program as of December 31, 2021, we had repurchased 28.5 million shares at an
aggregate purchase price of $1,183.7 million, and had $316.3 million remaining available.
The following is a summary of our common stock repurchases during the quarter ended December 31, 2021:
Total
Number of
Shares
Purchased
Average
Price Paid
per Share
313,779 $
95.67
31,301 $ 102.70
56,246 $
401,326 $
97.38
96.46
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)
313,779 $
31,301 $
56,246 $
401,326 $
325.0
321.8
316.3
316.3
Period
October 1, 2021 through October 31, 2021 . . . . . .
November 1, 2021 through November 30, 2021 . . .
December 1, 2021 through December 31, 2021 . . .
Total
ITEM 6.
[Reserved]
Part II, Item 6 of this Annual Report on Form 10-K is no longer required.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with
"Special Note Regarding Forward Looking Statements", Item 1, Item 1A, and Item 8 of this Annual Report on Form 10-K. In
addition, refer to Item 7 in our Annual Report on Form 10-K for the year ended December 31, 2020 for our discussion and
analysis comparing financial condition and results of operations from 2020 to 2019.
OVERVIEW
We connect active people with their passions. We are a global leader in designing, developing, marketing, and distributing
outdoor, active and everyday lifestyle products. We manage these products in two categories: apparel, accessories, and
equipment products and footwear products. We provide our products through our four well-known brands, Columbia,
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 24
SOREL, Mountain Hardwear, and prAna. Apparel, accessories, and equipment products are provided by our Columbia,
Mountain Hardwear and prAna brands. Footwear products are provided by our Columbia and SOREL brands. We sell our
products in approximately 90 countries and operate in four geographic segments: U.S., LAAP, EMEA, and Canada.
We are committed to driving sustainable and profitable long-term growth and investing in our strategic priorities 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.
Ultimately, we expect our investments to enable market share capture across our brand portfolio, expand gross margin,
improve selling, general and administrative expense efficiency, and drive improved operating margin over the long-term.
Business Environment and Trends
Increased Outdoor Participation by Consumers | The COVID-19 pandemic drew a record number of individuals in the
United States to spend an increased amount of time outside, including participating in outdoor recreational activities. While
outdoor participation rates may not be maintained, we believe that our addressable consumer base worldwide has been
expanded and expect outdoor participation to remain elevated in comparison to pre-pandemic levels.
Casualization of the Apparel and Footwear Market | During the COVID-19 pandemic, we saw a move to casualization by
consumers. Our products provide comfort and function in diverse environments. We believe we have benefited from this
trend and expect it to continue to be a tailwind moving forward.
Decreased Promotional Environment | In 2021, we operated in an extremely low promotional environment and
experienced fewer order cancellations, sales returns and customer accommodations than historically experienced. We
expect these trends to remain favorable in early 2022 and expect a gradual return to a more normalized promotional
environment and a potential transition towards more normalized trading terms. For 2022, we do not expect these metrics to
return to levels experienced in 2019 and prior years.
Lean Inventory Across the Marketplace | Consumer demand accelerated in 2021 resulting in lower inventory in the
marketplace. Lower marketplace inventories contributed to a full price selling environment resulting in lower promotional
activity and higher gross margins for our business in 2021. Given ongoing supply chain disruptions and the imbalance
between global supply and demand, we expect marketplace inventories to remain low until supply chain constraints ease
and retailers are able to replenish diminished inventory levels.
Changes in Consumer Spending Ability and Preferences | We believe government stimulus and unemployment benefits
increased consumers’ discretionary spending ability in 2021 and 2020. In addition, we believe the limited ability to travel,
attend entertainment-based experiences or purchase certain services increased consumers' savings levels. As we move
into 2022, we expect these tailwinds to diminish. However, we expect growth in wages will enable consumer spending, to
the extent it more than offsets inflationary pressures.
Decreased Direct-to-Consumer Store Traffic | During 2021, the majority of our stores remained open. At varying times
during the year, government efforts to control the spread of COVID-19 impacted our stores in various regions. Our stores in
Europe and Canada were impacted by these government efforts for most of the first quarter and at varying times in the
second quarter of 2021. Declared states of emergency impacted our stores in Japan in the first, second and third quarters.
Our stores in China were also impacted by these government efforts at varying times during 2021. Overall, our store retail
traffic trends improved during 2021, but remained below pre-pandemic levels. Certain stores in tourist-dependent locations
continue to be impacted by limited international tourism. While store traffic is improving, we expect it to continue to remain
uneven across our store fleet by region, depending on regional impacts of the virus and government efforts.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 25
Increased Ocean Freight Charges | In 2021, we experienced elevated ocean freight charges as a result of an imbalance
of supply and demand for steamship and ocean container capacity and changes in our ocean freight sourcing practices. We
expect our ocean freight charges to be reduced in the latter part of 2022. However, the imbalance in the marketplace
persists and ocean freight costs will remain elevated compared to historical norms.
Later Inventory Receipts | During the third quarter of 2021, government mandated factory closures in Vietnam disrupted
our manufacturing partners' operations and impacted production of Fall 2021 and Spring 2022 product. Factories in Vietnam
began to reopen as of October 1, 2021 at less than full capacity. In addition, port congestion and shortages in transportation
and labor further slowed the transportation of our inventory. As a result of these supply chain disruptions, we received Fall
2021 inventory later than expected and anticipate similar delays for Spring 2022 inventory. We do not expect the supply
chain to normalize in 2022 and continue to anticipate later than expected inventory receipts and shipments to our wholesale
customers and inventory available for our DTC businesses in 2022, resulting in impacts to future net sales and gross
margin.
Manufacturing Capacity Constraints | In 2021, we experienced footwear manufacturing capacity constraints which
prevented us from securing footwear product to meet demand. Although we are growing footwear manufacturing capacity in
2022, we again expect demand to outstrip capacity due to anticipated footwear sales growth rates. We anticipate being able
to meet footwear demand with appropriate supply in 2023.
Continued Labor Shortages | We have and continue to experience U.S. labor shortages, affecting our ability to staff and
operate our U.S. distribution centers, retail stores and consumer call centers, as well as find qualified employees for our
corporate offices and regional subsidiaries. In addition, labor costs have risen recently as a result of competition to attract
and retain qualified talent in an environment in which there is low unemployment and strong demand for employees. We
anticipate these rising costs and labor shortages to continue in 2022.
Increased Inflationary Pressures | Inflationary pressures, including increased inbound freight costs, impacted our results
in 2021. In addition to increased inbound freight costs, we expect increased product input costs, including higher wages and
raw materials costs, to impact our results in 2022. We are implementing product price increases beginning with our Spring
2022 season and, to a greater extent, our Fall 2022 season to mitigate these higher costs, to the extent possible, while
attempting to minimize potential risks of dampening consumer demand. Price increases varied by market and product
category. In the U.S., on average, we increased pricing by a mid-single digit percent for our Spring 2022 product line and a
high-single to low-double-digit percent for our Fall 2022 product line. We do not expect planned price increases will fully
offset gross margin pressure, particularly the effect of increased ocean freight costs. Looking beyond 2022, we anticipate
ocean freight and raw material cost inflation will be transitory, while wage inflation will be more permanent.
Changing Consumer Expectations | Consumer behavior continues to fluctuate. Consumer expectations and the related
competitive pressures have increased and continue to increase related to various aspects of our e-commerce business,
including speed of product delivery, shipping charges, return privileges and other evolving expectations. We maintain and
continue to make substantial investments in information systems, processes and personnel to support our ongoing demand
planning efforts to provide forecasting of optimal inventory to meet customer and consumer demands.
Seasonality | Our business is affected by the general seasonal trends common to the industry, including seasonal weather
and discretionary consumer shopping and spending patterns. Our products are marketed on a seasonal basis, and our
sales are weighted substantially toward the third and fourth quarters, while our operating costs are more equally distributed
throughout the year. In 2021, over 60% of our net sales and over 75% of our operating income were realized in the second
half of the year.
RESULTS OF OPERATIONS
The following discussion of our results of operations and liquidity and capital resources should be read in conjunction with
Item 8 of this Annual Report on Form 10-K. All references to years relate to the fiscal year ended December 31.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 26
Non-GAAP Financial Measure
To supplement financial information reported in accordance with accounting principles generally accepted in the United
States ("GAAP"), we disclose constant-currency net sales information, which is a non-GAAP financial measure, to provide a
framework to assess how the business performed excluding the effects of changes in foreign currency exchange rates
against the United States dollar between comparable reporting periods. We calculate constant-currency net sales by
translating net sales in foreign currencies for the current period into United States dollars at the exchange rates that were in
effect during the comparable period of the prior year. Management believes that this non-GAAP financial measure reflects
an additional and useful way of viewing an aspect of our operations that, when viewed in conjunction with our GAAP results,
provides a more comprehensive understanding of our business and operations. In particular, investors may find the non-
GAAP measure useful by reviewing our net sales results without the volatility in foreign currency exchange rates. This non-
GAAP financial measure also facilitates management's internal comparisons to our historical net sales results and
comparisons to competitors' net sales results. Constant-currency financial measures should be viewed in addition to, and
not in lieu of or superior to, our financial measures calculated in accordance with GAAP.
The following discussion includes references to constant-currency net sales, and we provide a reconciliation of this non-
GAAP measure to the most directly comparable financial measure calculated in accordance with GAAP below.
Results of Operations — Consolidated
Year Ended December 31, 2021 Compared to Year Ended December 31, 2020
The following table presents the items in our Consolidated Statements of Operations, both in dollars and as a percentage of
net sales:
(in millions, except for percentage of net sales and per share amounts)
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selling, general and administrative expenses . . . . . . . . . . . .
Net licensing income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other non-operating income (expense), net . . . . . . . . . . . . .
Income before income tax . . . . . . . . . . . . . . . . . . . . . . . . . .
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Year Ended December 31,
2021
2020
3,126.4
100.0 % $
2,501.6
100.0 %
1,513.9
1,612.5
1,180.3
48.4 %
51.6 %
37.8 %
18.3
0.6 %
450.5
14.4 %
1.4
(0.4)
— %
— %
451.5
14.4 %
(97.4)
(3.1) %
354.1
11.3 % $
1,277.7
1,223.9
1,098.9
12.0
137.0
0.4
2.1
139.5
(31.5)
108.0
51.1 %
48.9 %
43.9 %
0.5 %
5.5 %
— %
0.1 %
5.6 %
(1.3) %
4.3 %
Diluted earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . $
5.33
$
1.62
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 27
Net Sales. Net sales by brand, product category and channel are summarized in the following table:
Reported
Net Sales
2021
Adjust for
Foreign
Currency
Translation
Year Ended December 31,
Constant-
currency
Net Sales
2021 (1)
Reported
Net Sales
2020
Reported
Net Sales
% Change
Constant-
currency
Net Sales
% Change(1)
(in millions, except for percentages)
Brand Net Sales: . . . . . . . . . . . . .
Columbia . . . . . . . . . . . . . . . . . . . . $ 2,557.4 $
SOREL . . . . . . . . . . . . . . . . . . . . .
prAna . . . . . . . . . . . . . . . . . . . . . .
Mountain Hardwear . . . . . . . . . . . .
141.9
320.9
106.2
(26.4) $ 2,531.0 $ 1,996.9
(2.4)
—
(0.5)
318.5
141.9
105.7
293.5
131.6
79.6
Total
$ 3,126.4 $
(29.3) $ 3,097.1 $ 2,501.6
Product Category Net Sales:
Apparel, Accessories and Equipment $ 2,389.2 $
Footwear . . . . . . . . . . . . . . . . . . . .
737.2
(20.3) $ 2,368.9 $ 1,867.6
(9.0)
728.2
634.0
Total
$ 3,126.4 $
(29.3) $ 3,097.1 $ 2,501.6
Channel Net Sales:
Wholesale . . . . . . . . . . . . . . . . . . . $ 1,660.4 $
DTC . . . . . . . . . . . . . . . . . . . . . . .
1,466.0
(19.5) $ 1,640.9 $ 1,403.3
(9.8)
1,456.2
1,098.3
28%
9%
8%
33%
25%
28%
16%
25%
18%
33%
Total
25%
(1) Constant-currency net sales is a non-GAAP financial measure. See "Non-GAAP Financial Measure" above for further information.
(29.3) $ 3,097.1 $ 2,501.6
$ 3,126.4 $
27%
9%
8%
33%
24%
27%
15%
24%
17%
33%
24%
Overall, our global net sales increase reflects the higher consumer demand and economic recovery from the ongoing
COVID-19 pandemic. This increase was constrained by supply chain disruptions that limited factory capacities for footwear
products and resulted in later inventory receipts and lower than expected wholesale shipments.
Net sales increased across all regions, primarily driven by increased Columbia brand net sales which benefited from robust
consumer demand, lapping of 2020 DTC store closures, and increased orders from wholesale customers following lower
sales volumes in 2020 due to order cancellations in response to the COVID-19 pandemic. During 2021, our global DTC e-
commerce business grew 20% and represented 18% of our global net sales, including fourth quarter 2021 growth of 25%
year-over-year and represented 23% of our global net sales. In 2020, our global DTC e-commerce business grew 39% and
represented 19% of global net sales.
Gross Profit. Our gross profit may not be comparable to other companies in our industry as some companies may include
all costs related to their distribution network in Cost of sales, while we include these expenses in SG&A expense. Gross
profit is summarized in the following table:
(in millions, except for percentages and basis points)
2021
2020
Change
Gross profit
Gross margin
$
1,612.5
$
1,223.9
$
388.6
32 %
51.6 %
48.9 %
270 bps
Year Ended December 31,
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 28
Gross profit as a percentage of net sales expanded primarily due to:
•
an approximate 230 bps increase in channel profitability substantially due to higher DTC product margins
reflecting lower promotional levels and, to a lesser extent, higher wholesale product margin driven by strong retail
sell-through performance resulting in a higher proportion of full price vs off price sales mix and lower customer
accommodations, partially offset by unfavorable impacts from higher inbound freight costs due to supply chain
constraints; and
•
favorable impacts from lower year-over-year inventory provisions.
Selling, General and Administrative Expenses. SG&A expenses includes all costs associated with our design,
merchandising, marketing, distribution, and corporate functions, including related depreciation and amortization.
SG&A expenses is summarized in the following table:
(in millions, except for percentages and basis points)
Selling, general and administrative expenses
Selling, general and administrative expenses as
percent of net sales
Year Ended December 31,
2021
1,180.3
$
2020
1,098.9
$
$
Change
81.4
7 %
37.8 %
43.9 %
-610 bps
The SG&A expenses increase was primarily due to expenses incurred to support the growth of our business and its
recovery from the COVID-19 impacts from 2020. During 2021, we spent approximately 5.9% of our net sales for demand
creation, compared to 5.7% in 2020. In addition, depreciation and amortization included in SG&A expenses totaled $55.5
million, compared to $63.0 million in 2020.
Factors contributing to the increase of SG&A expenses included:
•
•
•
•
•
•
•
•
•
higher global retail expenses of $51.8 million relative to prior year temporary store closures;
increased demand creation spend of $43.6 million;
higher personnel expenses of $37.6 million to support business growth as well as annual merit and other wage
rate increases;
higher incentive compensation of $31.1 million; and
higher professional fees and insurance; partially offset by
decreased retail impairments and store closures charges of $37.4 million, reflecting the non-recurrence of prior
year retail impairments and store closure charges of $28.8 million and the 2021 benefit of $8.6 million from the
completion of lease terminations and settlements related to certain of those closures;
decreased bad debt expenses of $29.7 million, which primarily reflected the non-recurrence of a 2020 bad debt
expense increase of $19.7 million resulting from the COVID-19 pandemic;
the non-recurrence of prior year expenses of $18.9 million related to the COVID-19 pandemic; and
the non-recurrence of prior year prAna brand trademark impairment charge of $17.5 million.
Income Tax Expense. Income tax expense and the related effective income tax rate is summarized in the following table:
(in millions, except for percentages)
Income tax expense
Effective income tax rate
Year Ended December 31,
2021
2020
Change
$
(97.4)
$
(31.5)
$
(65.9)
209 %
21.6 %
22.6 %
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 29
Our effective income tax rates for the years ended December 31, 2021 and 2020 were impacted by discrete tax items,
which lowered the effective tax rate each year. Our effective income tax rate for the year ended December 31, 2021
decreased, compared to 2020, primarily due to the non-recurring benefit of a decrease in accrued foreign withholding taxes
as well as the change in mix of book income or loss among jurisdictions.
Results of Operations — Segment
Year Ended December 31, 2021 Compared to Year Ended December 31, 2020
Segment income from operations includes net sales, cost of sales, SG&A expense, and net licensing income for each of our
four reportable geographic segments. Income from operations as a percentage of net sales in the U.S. is typically higher
than the other segments primarily due to scale efficiencies associated with the larger base of net sales in the U.S. and, to a
lesser extent, incremental licensing income.
We anticipate this trend to continue until other segments achieve scale efficiencies from higher levels of net sales volume
relative to the fixed cost structure necessary to operate the business.
Net sales by geographic segment are summarized in the following table:
Reported
Net Sales
2021
Adjust for
Foreign
Currency
Translation
Year Ended December 31,
Constant-
currency
Net Sales
2021 (1)
Reported
Net Sales
2020
Reported
Net Sales
% Change
(in millions, except for percentage changes)
U.S. . . . . . . . . . . . . . . . . . . . . . . . $ 2,060.3 $
LAAP . . . . . . . . . . . . . . . . . . . . . .
EMEA . . . . . . . . . . . . . . . . . . . . . .
Canada . . . . . . . . . . . . . . . . . . . . .
382.1
465.5
218.5
— $ 2,060.3 $ 1,603.8
(7.5)
(9.0)
(12.8)
458.0
373.1
205.7
424.5
298.9
174.4
28%
10%
28%
25%
25%
(1) Constant-currency net sales is a non-GAAP financial measure. See "Non-GAAP Financial Measure" above for further information.
(29.3) $ 3,097.1 $ 2,501.6
$ 3,126.4 $
Constant-
currency
Net Sales
% Change(1)
28%
8%
25%
18%
24%
Operating income for each reportable segments and unallocated corporate expenses are summarized in the following table:
(in millions)
U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total segment operating income . . . . . . . . . . . . . . . . . . . . . . . .
Unallocated corporate expenses . . . . . . . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Year Ended December 31,
2021
2020
Change
$
536.5 $
250.5 $
42.0
65.5
52.7
696.7
(246.2)
35.9
31.2
37.6
355.2
(218.2)
$
450.5 $
137.0 $
286.0
6.1
34.3
15.1
341.5
(28.0)
313.5
Unless otherwise noted below, segment net sales and operating income within all regions increased due to higher
consumer demand and the recovery from the COVID-19 pandemic impacts from 2020. In 2020, unfavorable COVID-19
pandemic impacts led to economic lockdowns, including temporary store closures and lower consumer demand.
U.S. U.S. income from operations increased $286.0 million to $536.5 million, or 26.0% of net sales, in 2021 from
$250.5 million, or 15.6% of net sales, in 2020. The increase was driven primarily by increased net sales, increased
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 30
gross margins, and the non-recurrence of prior year retail impairments and store closure charges of $28.8 million and
the 2021 benefit of $8.6 million from settlements related to those closures. U.S. net sales increased $456.5 million, or
28% in 2021 compared to $1,603.8 million in 2020. U.S. net sales increased in our DTC and wholesale businesses.
U.S DTC net sales increased largely from net sales growth generated from retail stores, and to a lesser extent, our e-
commerce business. At December 31, 2021, our U.S. business operated 142 retail stores, compared to 132 stores at
December 31, 2020. SG&A expenses decreased as a percentage of net sales to 26.7% in 2021 compared to 33.8% in
2020 largely due to the impact of net sales increases, and the non-recurrence of prior year retail impairments, other
store closure charges and COVID-19 related expenses.
LAAP. LAAP income from operations increased $6.1 million to $42.0 million, or 9.0% of net sales, in 2021 from $35.9
million, or 8.5% of net sales, in 2020. The increase was driven primarily by increased net sales combined with
increased gross margin. LAAP net sales increased $41.0 million, or 10% (8% constant-currency) in 2021 compared to
$424.5 million in 2020, driven largely by increased net sales in our China business, and to a lesser extent, our Korea
business, partially offset by decreased net sales in our LAAP distributors and Japan businesses. LAAP SG&A expense
increased as a percentage of net sales to 48.3% in 2021 compared to 45.7% in 2020 largely due to incremental
demand creation expense, partially offset by the impact of net sales increases.
EMEA. EMEA income from operations increased $34.3 million to $65.5 million, or 17.1% of net sales, in 2021 from
$31.2 million, or 10.4% of net sales, in 2020. The increase was driven primarily by increased net sales combined with
increased gross margin. EMEA net sales increased $83.2 million, or 28% (25% constant-currency) in 2021 compared
to $298.9 million in 2020. EMEA net sales increased primarily in our Europe-direct business, followed by our EMEA
distributor business. EMEA SG&A expense decreased as a percentage of net sales to 28.0% in 2021 compared to
33.4% in 2020 largely due to the impact of net sales increases and the non-recurrence of prior year COVID-19 related
expenses.
Canada. Canada income from operations increased $15.1 million to $52.7 million, or 24.1% of net sales, in 2021 from
$37.6 million, or 21.6% of net sales, in 2020. The increase primarily resulted from increased net sales combined with
increased gross margin. Canada net sales increased $44.1 million, or 25% (18% constant-currency) in 2021 compared
to $174.4 million in 2020, primarily driven by increased net sales in our Canada wholesale business, followed by our
Canada DTC businesses. Canada SG&A expense decreased as a percentage of net sales to 24.0% in 2021 compared
to 25.6% for 2020 largely due to the impact of net sales increases and the non-recurrence of prior year COVID-19
related expenses.
Unallocated corporate expenses increased by $28.0 million to $246.2 million in 2021, from $218.2 million in 2020, largely
driven by higher incentive compensation and personnel expenses, partially offset by the non-recurrence of the 2020 prAna
brand trademark impairment charge of $17.5 million.
LIQUIDITY AND CAPITAL RESOURCES
Including cash, cash equivalents, short-term investments and available committed and uncommitted credit lines, we had
more than $1.5 billion in total liquidity at December 31, 2021. Our liquidity may be affected by the general seasonal trends
common to the industry. Our products are marketed on a seasonal basis and our sales are weighted substantially toward
the third and fourth quarters, while our operating costs are more equally distributed throughout the year. Our cash and cash
equivalents and short-term investments balances generally are at their lowest level at the end of the third quarter and
increase during the fourth quarter from collection of wholesale business receivables and fourth quarter DTC sales.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 31
Cash Flow Activities
Cash flows from continuing operations are summarized in the following table:
(in millions)
Year Ended December 31,
2021
2020
Change
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
763.4 $
790.7 $
(27.3)
Net cash provided by (used in): . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
354.4 $
276.1 $
Investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net effect of exchange rate changes on cash . . . . . . . . . . . . . . . . . . .
(163.8)
(210.9)
(7.0)
(27.2)
(151.7)
7.5
78.3
(136.6)
(59.2)
(14.5)
Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . $
(27.3) $
104.7 $
(132.0)
The change in cash flows provided by operating activities was driven by a $157.8 million increase in net income and non-
cash adjustments, partially offset by a $79.5 million increase in cash used in changes in assets and liabilities. The most
significant comparative changes included Inventories, net, Accounts payable, Accrued liabilities, Prepaid expenses and
other current assets, Accounts receivable, and Operating lease assets and liabilities. The $165.1 million increase in cash
used in Inventories, net was mainly driven by an increase in inventory purchases reflecting strong consumer demand. The
$124.8 million increase in cash provided by Accounts payable primarily reflects the effects of higher receipts of inventory in
the fourth quarter of 2021 compared to the fourth quarter of 2020 due to stronger customer demand and increased in-transit
inventory. The $118.6 million increase in cash provided by Accrued liabilities was primarily driven by changes in accruals for
incentive compensation as well as DTC return liabilities. The $58.6 million increase in cash used in Prepaid expenses and
other assets was primarily driven by changes in inventory prepayments and U.S. prepaid income taxes. The $54.5 million
increase in cash used in Accounts receivable was driven by higher wholesale net sales, partially offset by higher collections
in 2021. The $33.1 million increase in cash used in Operating lease assets and liabilities was primarily due to payment of
deferred rents and lease termination fees.
Net cash used in investing activities was $163.8 million for 2021 compared to $27.2 million for 2020. For 2021, net cash
used in investing activities consisted of $129.1 million in net purchases of short-term investments and $34.7 million for
capital expenditures. For 2020, net cash used in investing activities primarily consisted of $28.8 million for capital
expenditures.
Net cash used in financing activities was $210.9 million for the 2021 compared to $151.7 million for 2020. For 2021, net
cash used in financing activities primarily consisted of repurchases of common stock of $165.4 million and dividend
payments to our shareholders of $68.6 million, partially offset by net proceeds from the issuance of common stock related to
stock-based compensation of $23.0 million. For 2020, net cash used in financing activities primarily consisted of
repurchases of common stock of $132.9 million and dividend payments to our shareholders of $17.2 million.
Sources of Liquidity
Cash and cash equivalents and short-term investments
At December 31, 2021, we had cash and cash equivalents of $763.4 million and short-term investments of $131.1 million,
compared to $790.7 million and $1.2 million, respectively, at December 31, 2020.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 32
Domestic Credit Facility
We have available an unsecured, committed revolving credit facility that provides for funding up to $500.0 million. This credit
agreement matures on December 30, 2025. Interest, payable monthly, is based on the Company's option of either LIBOR
plus an applicable margin or a base rate. Base rate is defined as the highest of the following, plus an applicable margin:
•
•
•
the administrative agent's prime rate;
the higher of the federal funds rate or the overnight bank funding rate set by the Federal Reserve Bank of New
York, plus 0.50%; or
the one-month LIBOR plus 1.00%.
This credit agreement requires the Company to comply with certain financial covenants covering the Company's funded
debt ratio and asset coverage ratio. The credit agreement also includes customary covenants that, among other things, limit
or restrict the ability of the Company and its subsidiaries to incur additional indebtedness and liens, engage in mergers,
acquisitions and dispositions, and engage in transactions with affiliates, as well as restrict certain payments, including
dividends and share buybacks.
At December 31, 2021, there was no balance outstanding under our credit facility. At the time of this filing, we are in
compliance with all financial covenants necessary as a condition for borrowing under the Columbia Sportswear Company
credit agreement.
International Credit Facilities
Our European subsidiary has available an unsecured, committed line of credit, which is guaranteed by the Company and
provides for borrowing up to €4.4 million (approximately US$5.0 million). Borrowings accrue interest at a base rate plus 75
basis points.
In addition, collectively, our international subsidiaries have available approximately US$111.7 million in unsecured and
uncommitted lines of credit and overdraft facilities.
At December 31, 2021, there was no balance outstanding under our international subsidiaries' lines of credit and overdraft
facilities.
Capital Requirements
Our expected short-term and long-term cash needs are primarily for working capital and capital expenditures. We expect to
meet these short-term and long-term cash needs primarily with cash flows from operations and, if needed, borrowings from
our existing domestic credit facility.
Our working capital management goals include maintaining an optimal level of inventory necessary to deliver goods on time
to our customers and our retail stores to satisfy end consumer demand, alleviating manufacturing capacity constraints, and
driving efficiencies to minimize the cycle time from the purchase of inventory from our suppliers to the collections of
accounts receivable balances from our customers. We maintain and continue to make substantial investments in
information systems, processes and personnel to support our ongoing demand planning efforts to meet our working capital
management goals.
We have planned 2022 capital expenditures of approximately $80 to $100 million. This includes investments in our digital
and supply chain capabilities to support our strategic priorities and our DTC operations, including new stores. Our actual
planned capital expenditures may differ from the planned amounts depending on factors such as the timing of system
implementations and new store openings and related construction as well as the availability of capital assets from suppliers.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 33
Our long-term goal is to maintain a strong balance sheet and a disciplined approach to capital allocation. Dependent upon
market conditions and our strategic priorities, our capital allocation approach includes:
•
•
•
investing in organic growth opportunities to drive long-term profitable growth;
returning 40% of free cash flow to shareholders through dividends and share repurchases; and
considering opportunistic mergers and acquisitions.
Free cash flow is a non-GAAP financial measure. Free cash flow is calculated by reducing net cash flow from operating
activities by capital expenditures. Management believes free cash flow provides investors with an important perspective on
the cash available for shareholders and acquisitions after making the capital investments required to support ongoing
business operations and long-term value creation. Free cash flow does not represent the residual cash flow available for
discretionary expenditures as it excludes certain mandatory expenditures. Management uses free cash flow as a measure
to assess both business performance and overall liquidity.
Other cash commitments
Our non-current Income taxes payable on the Consolidated Balance Sheet at December 31, 2021 includes approximately
$13.7 million of net unrecognized tax benefits. We are uncertain about whether or when these amounts may be settled.
Refer to Note 10 in Item 8 of this Annual Report on Form 10-K for additional information.
The following table presents our estimated significant contractual commitments that will require use of funds:
Year ended December 31,
2022
2023
(in millions)
Inventory purchase obligations . . . $
Operating lease obligations (1) . . .
TCJA transition tax obligations (2) .
(1) Refer to Operating Leases in Note 9 in Item 8 of this Annual Report on Form 10-K.
(2) Refer to Income Taxes in Note 10 in Item 8 of this Annual Report on Form 10-K.
656.5 $
— $
78.2
72.5
4.2
8.0
2024
2025
2026
Thereafter
Total
— $
— $
— $
— $
656.5
65.7
10.6
55.8
13.3
49.1
—
106.3
—
427.6
36.1
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Management's discussion and analysis of our financial condition and results of operations are based on our 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. Refer to Note 2 in Item 8 of this Annual Report on
Form 10-K for additional information regarding the significant accounting policies and methods used in the preparation of
our consolidated financial statements.
We believe that the estimates, assumptions and judgments involved in the accounting policies described below 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 and estimates. We base our ongoing estimates on historical experience and other
assumptions that we believe to be reasonable in the circumstances. Our critical accounting policies and estimates relate to
sales reserves, allowance for uncollectible accounts receivable, excess, close-out and slow-moving inventory, impairment of
long-lived assets, intangible assets and goodwill, and income 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 annual 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
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 34
changes in these estimates, and any other relevant matters related to these estimates, including significant issues
concerning accounting principles and financial statement presentation.
Sales Reserves
The amount of consideration we receive and recognize as Net sales across both wholesale and DTC channels varies with
changes in sales returns and other accommodations and incentives we offer to our customers. When we give our customers
the right to return products or provide other accommodations such as chargebacks and markdowns, we estimate the
expected sales returns and miscellaneous claims from customers and record sales reserves to reduce Net sales. At
December 31, 2021, our sales related reserves were $99.0 million compared to $83.2 million at December 31, 2020. The
most significant variable affecting these reserve balances is net sales levels. As a percent of Net sales, the sales reserves
balances were 3.2% at December 31, 2021 compared to 3.3% at December 31, 2020. The reserve for returns from
customers or consumers is the most susceptible to estimation uncertainty. These estimates are based on 1) historical rates
of product returns and claims; and 2) events and circumstances that indicate changes to such historical rates, such as our
customers' net inventory positions and their anticipated sell-through rates. However, actual returns and claims in any future
period are inherently uncertain and thus may differ from the estimates. As a result, we adjust our estimates of revenue at
the earlier of when the most likely amount of consideration we expect to receive changes or when the amount of
consideration becomes fixed. If actual or expected future returns and claims are significantly different than the sales reserve
established, we record an adjustment to Net sales in the period in which such determination was made.
Allowance for Uncollectible Accounts Receivable
We make ongoing estimates of the collectability of our accounts receivable and maintain an allowance for estimated credit
losses resulting from the inability of our 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. In determining the amount of the allowance, we consider
our historical level of credit losses, as well as our judgments about the creditworthiness of customers based on ongoing
credit evaluations. We analyze specific customer accounts, including aged receivables, customer concentrations, credit
insurance coverage, standby letters of credit, and other forms of collateral, current economic trends, and changes in
customer payment terms.
Our allowance for uncollectible accounts receivable decreased to $8.9 million at December 31, 2021 compared to $21.8
million at December 31, 2020. The balance at December 31, 2021 compared to the prior year reflects an improving credit
environment with wholesale customers during 2021 and economic recovery of the retail sector through the ongoing
COVID-19 pandemic. Continued uncertainty in credit and market conditions may slow our collection efforts if customers
experience difficulty accessing credit and paying their obligations, leading to higher than normal accounts receivable and
increased bad debt risk. Because future changes in the financial stability of our customers is difficult to estimate, actual
future losses from uncollectible accounts may differ from our estimates and may have a material effect on our financial
position, results of operations or cash flows. If the financial condition of our customers deteriorates and results in their
inability to make payments, a larger allowance may be required. If we determine that a smaller or larger allowance is
appropriate, we will record an adjustment to SG&A expense in the period in which we make such a determination.
Excess, Close-Out and Slow-Moving Inventory
We make ongoing estimates of potential excess, close-out or slow-moving inventory. We evaluate our inventory on hand to
identify excess, close-out or slow-moving inventory by contemplating our 1) purchase commitments; 2), sales forecasts; 3)
historical liquidation experience; and 4) the level of inventory from current and prior seasons that remains unsold and
establish provisions as necessary to properly reflect inventory value at the lower of cost or net realizable value. Provisions
are established when necessary in the period in which we make such a determination. At December 31, 2021, our inventory
reserve offset gross inventory by $19.9 million compared to $29.5 million at December 31, 2020. Although Inventories, net
increased 16% from December 31, 2020 to December 31, 2021, the level of estimated excess inventory at December 31,
2021 declined reflecting strong consumer demand resulting in a lower inventory reserve.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 35
Impairment of Long-Lived Assets, Intangible Assets and Goodwill
Long-lived assets, which include property, plant and equipment, lease right-of-use ("ROU") assets, capitalized
implementation costs for cloud computing arrangements, and intangible assets with finite lives are measured for impairment
only when events or circumstances indicate the carrying value may not be recoverable. Our retail fleet long‑lived assets are
evaluated at the retail location level. Events that result in an impairment review of a retail location include plans to close a
retail location or a significant decrease in the operating results of the retail location. When such an indicator occurs, we
evaluate retail location long‑lived assets for impairment by comparing the undiscounted future cash flow expected to be
generated by the location to the location long‑lived asset’s carrying amount. If the carrying amount of an asset exceeds the
estimated undiscounted future cash flow, an analysis is performed to estimate the fair value of the asset. An impairment is
recorded if the fair value of the retail location long‑lived asset is less than the carrying amount.
During 2021 we tested certain long-lived assets consisting of property, plant, and equipment and lease ROU assets for
impairment at certain underperforming retail locations. For the year ended December 31, 2021, impairment charges from
underperforming retail stores were not material. Further declines in projected future performance may adversely affect the
recovery of retail locations assets. For the year ended December 31, 2020, impairment charges from underperforming retail
stores were $7.0 million for lease ROU assets and $5.0 million for property, plant and equipment.
We review and test our intangible assets with indefinite lives and goodwill for impairment in the fourth quarter of each year
and when events or changes in circumstances indicate that the carrying amount of such assets may be impaired. Our
intangible assets with indefinite lives consist of trademarks and trade names. Substantially all of our goodwill is recorded in
the U.S. segment and impairment testing for goodwill is performed at the reporting unit level. Our 2021 impairment tests of
intangible assets with indefinite lives and goodwill indicated the fair value of all reporting units and intangible assets with
indefinite lives exceeded their respective carrying values.
In the impairment tests for trademarks and trade names, we compare the estimated fair value of each asset to its carrying
amount. The fair values of trademarks and trade names are estimated using a relief from royalty method under the income
approach. If the carrying amount of a trademark or trade name exceeds its estimated fair value, we calculate impairment as
the excess of carrying amount over the estimate of fair value. At December 31, 2021, the carrying value of indefinite-lived
intangible assets was $97.9 million, of which $70.5 million was attributed to prAna’s trademark. In our 2021 impairment test,
the fair value of prAna’s trademark exceeded its carrying value by approximately 26% as of the measurement date and,
therefore, no impairment was recognized. As part of our evaluation, we performed sensitivity analysis on the trademark
impairment model. A 10% decrease in estimated net sales for each of the next five years did not cause the fair value of the
trademark to decline below its carrying value. Separately, a 100 basis point increase in the assumed discount rate did not
cause the fair value of the trademark to decline below its carrying value. In 2020, our impairment test of prAna’s trademark
resulted in a $17.5 million impairment charge.
In the impairment test for goodwill, we compare the estimated fair value of the reporting unit with the carrying amount of that
reporting unit. If the carrying amount of the reporting unit exceeds its estimated fair value, we calculate an impairment as the
excess of carrying amount over the estimate of fair value. We estimate the fair value of our reporting units using a
combination of discounted cash flow analysis and market-based valuation methods, as appropriate. Key assumptions used
in the discounted cash flow models are cash flow projections and the discount rate. Cash flow projections are developed in
part from our annual planning process. The discount rate is the estimated weighted-average costs of capital of the reporting
unit from a market-participant perspective. When we include market-based valuation methods to estimate fair value of our
reporting units, we utilize market multiples for guideline public companies. The goodwill balance was $68.6 million at
December 31, 2021, of which $54.2 million was allocated to the prAna reporting unit. In our 2021 impairment test, the fair
value of the prAna reporting unit exceeded its carrying value by approximately 39% as of the measurement date and,
therefore, no impairment was recognized.
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, and other operating performance
measures. Changes in estimates or the application of alternative assumptions could produce significantly different results.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 36
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.
Income Taxes
We make assumptions, judgments and estimates to determine our current provision for income taxes, our deferred tax
assets and liabilities and our uncertain tax positions. Our judgments, assumptions and estimates relative to the current
provision for income tax take into account current tax laws, our interpretation of current tax laws and possible outcomes of
current and future audits conducted by foreign and domestic tax authorities. Changes in tax law or our interpretation of tax
laws and the resolution of current and future tax audits could significantly affect the amounts provided for Income tax
expense in our Consolidated Statements of Operations.
Our assumptions, judgments and estimates relative to the value of a deferred tax asset take into account predictions of the
amount and category of future taxable income. Actual operating results and the underlying amount and category of income
in future years could cause our current assumptions, judgments and estimates of recoverable net deferred tax assets to be
inaccurate. Changes in any of the assumptions, judgments and estimates mentioned above could cause our actual income
tax obligations to differ from our estimates, which could materially affect our financial position, results of operations or cash
flows.
Our assumptions, judgement and estimates relative to uncertain tax positions take into account whether a tax position is
more likely than not to be sustained upon examination by the relevant taxing authority based on the technical merits of the
position and the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the
relevant taxing authority. Changes in tax law or our interpretation of tax laws and the resolution of current and future tax
audits could significantly affect the amounts provided for Income tax expense in our Consolidated Statements of Operations.
Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete
items, if any, that are taken into account in the relevant period. As the calendar year progresses, we periodically refine our
estimate based on actual events and earnings by jurisdiction. This ongoing estimation process can result in changes to our
expected effective tax rate for the full calendar year. When this occurs, we adjust the income tax provision during the
quarter in which the change in estimate occurs so that our year-to-date provision equals our expected annual effective tax
rate.
RECENT ACCOUNTING PRONOUNCEMENTS
Refer to Note 2 in Item 8 of this Annual Report on Form 10-K.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
In the normal course of business, our financial position and results of operations are subject to a variety of risks, including
risks associated with global financial and capital markets, primarily currency exchange rate risk and, to a lesser extent,
interest rate risk. We regularly assess these risks and have established policies and business practices designed to mitigate
their effects. We do not engage in speculative trading in any financial or capital market.
FOREIGN EXCHANGE RISK
Our primary currency exchange rate risk management objective is to mitigate the uncertainty of anticipated cash flows
attributable to changes in exchange rates. We focus on mitigating changes in functional currency equivalent cash flows
resulting from anticipated United States dollar denominated inventory purchases by subsidiaries that use European euros,
Canadian dollars, Japanese yen, Chinese renminbi, or Korean won as their functional currency. We also mitigate changes
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 37
in functional currency equivalent cash flows resulting from anticipated non-functional currency denominated sales for
subsidiaries that use United States dollars and euros as their functional currency. We manage this risk primarily by using
currency forward contracts. Additionally, we hedge net balance sheet exposures related primarily to non-functional currency
denominated monetary assets and liabilities using foreign currency forward contracts in European euros, Japanese yen,
Canadian dollars, Swiss francs, Chinese renminbi, Korean won, British pound, Danish krone, Norwegian kroner, Polish
zloty, Swedish krona and Czech koruna. Non-functional currency denominated monetary assets and liabilities consist
primarily of cash and cash equivalents, short-term investments, receivables, payables, deferred income taxes, and
intercompany loans and dividends.
The net fair value of our derivative contracts was favorable by approximately $15.6 million at December 31, 2021. A 10%
unfavorable exchange rate change in the euro, franc, Canadian dollar, yen, renminbi, won, pound, krone, zloty, krona and
koruna against the United States dollar would have resulted in the net fair value declining by approximately $57.3 million at
December 31, 2021. Changes in fair value of derivative contracts resulting from foreign exchange rate fluctuations would be
substantially offset by the change in value of the underlying hedged transactions.
INTEREST RATE RISK
Our negotiated credit facilities generally charge interest based on a benchmark rate such as the London Interbank Offered
Rate ("LIBOR"). Fluctuations in short-term interest rates cause interest payments on drawn amounts to increase or
decrease. At December 31, 2021, no balance was outstanding under our credit facilities.
COMMODITY PRICE RISK
We are exposed to market risk for the pricing of the raw materials used to manufacture our products. These raw materials
are purchased directly by our contract manufacturers.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 38
ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Our management is responsible for the information and representations contained in this report. The financial statements
have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"),
which we consider appropriate in the circumstances and include some amounts based on our best estimates and
judgments. Other financial information in this report is consistent with these financial statements.
Our accounting systems include controls designed to reasonably ensure that assets are safeguarded from unauthorized use
or disposition and which provide for the preparation of financial statements in conformity with GAAP. These systems are
supplemented by the selection and training of qualified financial personnel and an organizational structure providing for
appropriate segregation of duties.
The audit committee is responsible for appointing the independent registered public accounting firm and reviews with the
independent registered public accounting firm and management the scope and the results of the annual examination, the
effectiveness of the accounting control system and other matters relating to our financial affairs as they deem appropriate.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 39
Deloitte & Touche LLP
U.S. Bancorp Tower
111 Southwest Fifth Avenue
Suite 3900
Portland, OR 97204-3642
USA
Tel:+1 503 222 1341
Fax: +1 503 224 2172
www.deloitte.com
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of Columbia Sportswear Company
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Columbia Sportswear Company and subsidiaries (the
"Company") as of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive income,
equity, and cash flows for each of the three years in the period ended December 31, 2021, the related notes, and the schedule
listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements
present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results
of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with
accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company's internal control over financial reporting as of December 31, 2021, based on criteria established in
Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission and our report dated February 24, 2022, expressed an unqualified opinion on the Company's internal control over
financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on
the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to
error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that
were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that
are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and
we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the
accounts or disclosures to which they relate.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 40
Intangible Assets, Net – prAna Trademark– Refer to Notes 2 and 6 to the Consolidated Financial Statements
Critical Audit Matter Description
The Company has intangible assets, including trademarks and trade names (“trademarks”). As of December 31, 2021, the
carrying value of the intangible assets was $101.9 million, of which $70.5 million was attributed to prAna’s trademark. The
Company used the relief from royalty method to estimate fair value, which requires management to make significant estimates
and assumptions related to projected revenues.
Auditing management’s estimates and assumptions related to projected revenues for prAna involved especially subjective
judgement.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to management’s estimates and assumptions related to projected revenues for the prAna
trademark valuation included the following, among others:
• We tested the effectiveness of controls over intangible assets, including those over the forecasts of future revenues.
• We evaluated management’s ability to accurately forecast future revenues by comparing actual results to management’s
historical forecasts.
• We evaluated the reasonableness of management’s revenues forecasts by comparing the forecasts to:
◦
◦
Historical revenues.
Forecasted information included in Company press releases as well as in analyst and industry reports for the Company
and certain of its peer companies.
• We evaluated the inputs used in the forecast and the basis for the assumptions made by management.
• We evaluated the impact of changes in management’s forecasts from the October 31, 2021 annual measurement date to
December 31, 2021.
Long-lived Asset Valuation – Refer to Notes 2, 5 and 9 to the Consolidated Financial Statements
Critical Audit Matter Description
The Company evaluates retail location long-lived assets for impairment when events or changes in circumstances exist that may
indicate that the carrying amounts of retail location long-lived assets are no longer recoverable. Events that result in an
impairment review include plans to close a retail location or a significant decrease in the operating results of the retail location.
When such an indicator occurs, the Company evaluates its retail location long-lived assets for impairment by comparing the
undiscounted future cash flow expected to be generated by the location to the location long-lived asset’s carrying amount. If the
carrying amount of an asset exceeds the estimated undiscounted future cash flow, an analysis is performed to estimate the fair
value of the asset. An impairment is recorded if the fair value of the retail location long-lived asset is less than the carrying
amount.
The Company makes significant assumptions to evaluate retail location long-lived assets for possible indications of impairment.
Changes in these assumptions could have a significant impact on the retail location long-lived assets identified for further
analysis. For the year ended December 31, 2021, impairment charges from underperforming retail location long-lived assets
were immaterial.
Given the Company’s evaluation of possible indications of impairment of retail location long-lived assets requires management to
make significant assumptions, performing audit procedures to evaluate whether management appropriately identified events or
changes in circumstances indicating that the carrying amounts of retail location long-lived assets may not be recoverable
involved especially subjective judgment.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 41
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the evaluation of retail location long-lived assets for possible indications of impairment included
the following, among others:
• We tested the effectiveness of the controls over management's identification of possible circumstances that may indicate
that the carrying amounts of retail location long-lived assets are no longer recoverable.
• We evaluated management's impairment analysis by:
◦
◦
Testing retail location long-lived assets for possible indications of impairment, including searching for locations with a
history of losses, current period loss, or projected losses.
Performing inquiries of management regarding the process and assumptions used to identify potential indicators of
impairment and evaluating the consistency of the assumptions with evidence obtained in other areas of the audit.
/s/ DELOITTE & TOUCHE LLP
Portland, Oregon
February 24, 2022
We have served as the Company’s auditor since at least 1994; however, an earlier year could not be reliably determined.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 42
Deloitte & Touche LLP
U.S. Bancorp Tower
111 Southwest Fifth Avenue
Suite 3900
Portland, OR 97204-3642
USA
Tel:+1 503 222 1341
Fax: +1 503 224 2172
www.deloitte.com
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Directors of Columbia Sportswear Company
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Columbia Sportswear Company and subsidiaries (the
“Company”) as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework (2013)
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company
maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on
criteria established in Internal Control – Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the consolidated financial statements as of and for the year ended December 31, 2021, of the Company and our
report dated February 24, 2022, expressed an unqualified opinion on those financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting, included in the accompanying Report of
Management. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on
our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to
the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities
and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in
all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing
the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control
based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We
believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection
of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial
statements.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 43
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ DELOITTE & TOUCHE LLP
Portland, Oregon
February 24, 2022
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 44
CONSOLIDATED BALANCE SHEETS
(in thousands)
Current Assets:
ASSETS
December 31,
2021
2020
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts receivable, net of allowance of 8,893 and 21,810, respectively . . .
Inventories, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . . . . . . .
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property, plant and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating lease right-of-use assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
763,404 $
131,145
487,803
645,379
86,306
790,725
1,224
452,945
556,530
54,197
2,114,037
1,855,621
291,088
330,928
101,908
68,594
92,121
68,452
309,792
339,244
103,558
68,594
96,126
63,636
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
3,067,128 $
2,836,571
Current Liabilities:
LIABILITIES AND EQUITY
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating lease liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current operating lease liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term liabilities
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commitments and contingencies (Note 12)
Shareholders' Equity:
283,349 $
316,485
67,429
13,127
680,390
317,666
44,541
—
35,279
206,697
257,278
65,466
23,181
552,622
353,181
49,922
5,205
42,870
1,077,876
1,003,800
Preferred stock; 10,000 shares authorized; none issued and outstanding . . .
Common stock (no par value); 250,000 shares authorized; 65,164 and
66,252 issued and outstanding, respectively . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income (loss) . . . . . . . . . . . . . . . . . . .
Total shareholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities and shareholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
—
—
1,993,628
(4,376)
1,989,252
3,067,128 $
—
20,165
1,811,800
806
1,832,771
2,836,571
See accompanying notes to consolidated financial statements.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 45
3,042,478
1,526,808
1,515,670
1,136,186
15,487
394,971
8,302
2,156
405,429
(74,940)
330,489
4.87
4.83
67,837
68,493
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended December 31,
2020
2021
2019
(in thousands, except per share amounts)
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selling, general and administrative expenses . . . . . . . . .
Net licensing income . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income, net . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other non-operating income (expense), net . . . . . . . . . .
Income before income tax . . . . . . . . . . . . . . . . . . . . . . .
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,126,402 $
2,501,554 $
1,513,947
1,612,455
1,180,323
18,372
450,504
1,380
(373)
451,511
(97,403)
354,108
1,277,665
1,223,889
1,098,948
12,108
137,049
435
2,039
139,523
(31,510)
108,013
Earnings per share:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
5.37 $
5.33 $
1.63 $
1.62 $
Weighted average shares outstanding:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
65,942
66,415
66,376
66,772
See accompanying notes to consolidated financial statements.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 46
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Other comprehensive income (loss):
Unrealized holding gains on available-for-sale
securities, net . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrealized holding gains (losses) on derivative
transactions (net of tax effects of $(7,138), $6,271,
and $830, respectively) . . . . . . . . . . . . . . . . . . . .
Foreign currency translation adjustments (net of tax
effects of $(40), $(388), and $2,188, respectively) . .
Other comprehensive income (loss) . . . . . . . . . . . . . . . .
Comprehensive income . . . . . . . . . . . . . . . . . . . . . . . .
Year Ended December 31,
2020
2021
2019
354,108 $
108,013 $
330,489
—
4
56
19,283
(18,851)
(2,383)
(24,465)
(5,182)
348,926
24,078
5,231
113,244
2,064
(263)
330,226
See accompanying notes to consolidated financial statements.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 47
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Cash flows from operating activities:
Year Ended December 31,
2021
2020
2019
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
354,108
$
108,013
$
330,489
Adjustments to reconcile net income to net cash provided by operating activities: . . . . . . . . . . . . . . . . . . . . . . .
Depreciation, amortization, and non-cash lease expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for uncollectible accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loss on disposal or impairment of intangible assets, property, plant and equipment, and right-of-use assets
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in operating assets and liabilities: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating lease assets and liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash flows from investing activities:
Purchases of short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales and maturities of short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash flows from financing activities:
115,571
(10,758)
1,233
(9,798)
19,126
(31,622)
(100,261)
(24,858)
1,231
75,513
66,457
(15,248)
(85,176)
(1,112)
354,406
(130,191)
1,184
(34,744)
(163,751)
146,601
19,156
31,342
(11,263)
17,778
22,885
64,884
33,712
(21,224)
(49,275)
(52,115)
9,082
(52,112)
8,613
276,077
(35,044)
36,631
(28,758)
(27,171)
Proceeds from credit facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38,334
402,422
Repayments on credit facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(38,156)
(403,146)
Payment of line of credit issuance fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from issuance of common stock related to stock-based compensation . . . . . . . . . . . . . . . . . . . .
Tax payments related to stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
28,783
(5,812)
(3,278)
6,919
(4,533)
121,725
(108)
5,442
(1,808)
17,832
(37,429)
(84,058)
(15,068)
(3,547)
(10,419)
18,863
(9,402)
(54,197)
7,137
285,452
(136,257)
400,501
(123,516)
140,728
78,186
(78,186)
—
19,793
(5,806)
Repurchase of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(165,415)
(132,889)
(121,702)
Purchase of non-controlling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash used in financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net effect of exchange rate changes on cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
(68,623)
(210,889)
(7,087)
(27,321)
790,725
—
(17,195)
(151,700)
7,510
104,716
686,009
Cash and cash equivalents, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
763,404
$
790,725
$
(17,880)
(65,127)
(190,722)
(1,244)
234,214
451,795
686,009
Supplemental disclosures of cash flow information:
Cash paid during the year for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
129,483
$
14,687
$
99,062
Supplemental disclosures of non-cash investing and financing activities:
Property, plant and equipment acquired through increase in liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
5,853
$
3,831
$
9,543
See accompanying notes to consolidated financial statements.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 48
CONSOLIDATED STATEMENTS OF EQUITY
(in thousands, except per share amounts)
Columbia Sportswear Company Shareholders' Equity
Common Stock
Shares
Outstanding
Amount
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Non-
Controlling
Interest
Total
Balance, January 1, 2019 . . . . . . . . . . . . . . . .
68,246 $
— $ 1,677,920 $
(4,063) $
16,456 $ 1,690,313
—
(99)
—
330,489
(16,456)
(16,555)
Balance, December 31, 2019 . . . . . . . . . . . . .
67,561
4,937
1,848,935
(4,425)
—
108,013
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase of non-controlling interest
Other comprehensive income (loss):
Unrealized holding gains on available-for-
sale securities, net . . . . . . . . . . . . . . . . .
Unrealized holding losses on derivative
transactions, net . . . . . . . . . . . . . . . . . .
Foreign currency translation adjustment, net
Cash dividends ($0.96 per share) . . . . . . . . . . .
Issuance of common stock related to stock-
based compensation, net . . . . . . . . . . . . . . .
Stock-based compensation expense . . . . . . . . .
—
—
—
—
—
—
—
—
—
—
—
—
558
—
13,987
17,832
330,489
—
—
—
—
(65,127)
—
—
Repurchase of common stock
(1,243)
(26,882)
(94,347)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss):
Unrealized holding gains on available-for-
sale securities, net . . . . . . . . . . . . . . . . .
Unrealized holding losses on derivative
transactions, net . . . . . . . . . . . . . . . . . .
Foreign currency translation adjustment, net
Cash dividends ($0.26 per share) . . . . . . . . . . .
Issuance of common stock related to stock-
based compensation, net . . . . . . . . . . . . . . .
Stock-based compensation expense . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss):
Unrealized holding gains on derivative
transactions, net . . . . . . . . . . . . . . . . . .
Foreign currency translation adjustment, net
Cash dividends ($1.04 per share) . . . . . . . . . . .
Issuance of common stock related to stock-
based compensation, net . . . . . . . . . . . . . . .
Stock-based compensation expense . . . . . . . . .
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
248
—
2,386
17,778
567
—
22,971
19,126
—
—
—
(17,195)
—
—
—
—
(68,623)
—
—
Repurchase of common stock . . . . . . . . . . . . .
(1,557)
(4,936)
(127,953)
Balance, December 31, 2020 . . . . . . . . . . . . .
66,252
20,165
1,811,800
—
354,108
56
(2,383)
2,064
—
—
—
—
—
4
(18,851)
24,078
—
—
—
—
806
—
19,283
(24,465)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
56
(2,383)
2,064
(65,127)
13,987
17,832
(121,229)
1,849,447
108,013
4
(18,851)
24,078
(17,195)
2,386
17,778
(132,889)
1,832,771
354,108
19,283
(24,465)
(68,623)
22,971
19,126
(165,919)
Repurchase of common stock . . . . . . . . . . . . .
(1,655)
(62,262)
(103,657)
Balance, December 31, 2021 . . . . . . . . . . . . .
65,164 $
— $ 1,993,628 $
(4,376) $
— $ 1,989,252
See accompanying notes to consolidated financial statements.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 49
INDEX TO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE
Note 1
Note 2
Note 3
Note 4
Note 5
Note 6
Note 7
Note 8
Note 9
Note 10
Note 11
Note 12
Note 13
Note 14
Note 15
Note 16
Note 17
Note 18
Note 19
Basis of Presentation and Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Summary of Significant Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Concentrations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property, Plant and Equipment, Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible Assets, Net and Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-Term Borrowings and Credit Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retirement Savings Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commitments and Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shareholders' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-Based Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Earnings Per Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated Other Comprehensive Income (Loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Segment Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Instruments and Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair Value Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 50
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 — BASIS OF PRESENTATION AND ORGANIZATION
NATURE OF THE BUSINESS
Columbia Sportswear Company connects active people with their passions through its four well-known brands, Columbia,
SOREL, Mountain Hardwear, and prAna, by designing, developing, marketing, and distributing its outdoor, active and
everyday lifestyle apparel, footwear, accessories, and equipment products to meet the diverse needs of its customers and
consumers.
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of Columbia Sportswear Company, its wholly owned
subsidiaries and entities in which it maintained a controlling financial interest (the "Company"). All significant 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
consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual
results may differ from these estimates and assumptions. The Company's significant estimates relate to sales reserves;
allowance for uncollectible accounts receivable; obsolescence reserves for excess; close-out and slow-moving inventory;
impairment of long-lived assets, intangible assets and goodwill; and income taxes.
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
Effective January 1, 2021, the Company adopted Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic
740): Simplifying the Accounting for Income Taxes issued by the Financial Accounting Standards Board (“FASB”) in
December 2019, 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. At adoption there was not a material impact to the Company's financial
position, results of operations or cash flows.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
Cash and cash equivalents are stated at fair value or at cost, which approximates fair value, and include investments with
original maturities of 90 days or less at the date of acquisition. At December 31, 2021, Cash and cash equivalents consisted
of cash and money market funds. At December 31, 2020, Cash and cash equivalents consisted of cash, money market
funds, and United States government treasury bills.
INVESTMENTS
At December 31, 2021, Short-term investments consisted of United States government treasury bills as well as money
market funds and mutual fund shares held as part of the Company's deferred compensation plan expected to be distributed
in the next twelve months. At December 31, 2020, Short-term investments consisted of money market funds and mutual
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 51
fund shares held as part of the Company's deferred compensation plan expected to be distributed in the next twelve
months. Investments held as part of the Company's deferred compensation plan are classified as trading securities and are
recorded at fair value with any unrealized gains and losses included in SG&A expense. Realized gains or losses from these
trading securities are determined based on the specific identification method and are included in SG&A expense.
At December 31, 2021 and 2020, long-term investments included in Other non-current assets consisted of money market
funds and mutual fund shares held to offset liabilities to participants in the Company's deferred compensation plan. The
investments are classified as long-term because the related deferred compensation liabilities are not expected to be paid
within the next year. These investments are classified as trading securities and are recorded at fair value with unrealized
gains and losses reported as a component of operating income.
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-offs of accounts receivable were $0.2 million and $8.0 million for the years ended December 31, 2021
and 2020, respectively.
INVENTORIES
Inventories consist primarily of finished goods and are carried at the lower of cost or net realizable value. Cost is determined
using the first-in, first-out method. The Company periodically reviews its inventories for excess, close-out or slow-moving
items and makes provisions as necessary to properly reflect inventory value.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided using the
straight-line method over the estimated useful lives of the assets. The principal estimated useful lives are: land
improvements, 15 years; buildings and building improvements, 15-30 years; furniture and fixtures, 3-10 years; and
machinery, software and equipment, 3-10 years. Leasehold improvements are depreciated over the lesser of the estimated
useful life of the improvement, which is most commonly 7 years, or the remaining term of the underlying lease.
Improvements to property, plant and equipment that substantially extend the useful life of the asset are capitalized. Repair
and maintenance costs are expensed as incurred. Internal and external costs directly related to the development of internal-
use software during the application development stage, including costs incurred for third party contractors and employee
compensation, are capitalized and depreciated over a 3-10 year estimated useful life.
INTANGIBLE ASSETS AND GOODWILL
Intangible assets with indefinite lives and goodwill are not amortized but are periodically evaluated for impairment. Intangible
assets that are determined to have finite lives are amortized using the straight-line method over their estimated useful lives
and are measured for impairment only when events or circumstances indicate the carrying value may be impaired.
Intangible assets with finite lives include patents, purchased technology and customer relationships and have estimated
useful lives which range from approximately 3 to 10 years.
CLOUD COMPUTING ARRANGEMENTS
The Company’s cloud computing arrangements ("CCAs") primarily relate to various enterprise resource planning systems,
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 52
as well as other supporting systems. These assets are generally included in Other non-current assets in the Consolidated
Balance Sheets and amortized 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 December 31, 2021, CCAs in-service have useful lives which range
from approximately ten months to five years. At December 31, 2021, and 2020 CCA assets consisted of capitalized
implementation costs of $26.6 million and $24.3 million, respectively and associated accumulated amortization of $6.8
million and $1.9 million, respectively. Changes in these assets are recorded in Other assets within operating activities in the
Consolidated Statements of Cash Flows.
LEASES
The Company leases, among other things, retail space, office space, warehouse facilities, storage space, vehicles, and
equipment. Generally, the base lease terms are between 5 and 10 years. Certain lease agreements contain scheduled rent
escalation clauses and others include rental payments adjusted periodically depending on an index or rate. Certain retail
space lease agreements provide for additional rents based on a percentage of annual sales in excess of stipulated
minimums ("percentage rent"). Certain lease agreements require the Company to pay real estate taxes, insurance, common
area maintenance, and other costs, collectively referred to as operating costs, in addition to base rent.
Certain lease agreements also contain lease incentives, such as tenant improvement allowances and rent holidays. Most
leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years or
more. The exercise of lease renewal options is generally at the Company's sole discretion. The Company's lease
agreements do not contain any material residual value guarantees or material restrictive covenants.
The Company determines if an arrangement is or contains a lease at contract inception. The Company recognizes a right-
of-use ("ROU") asset and a lease liability at the lease commencement date. The lease liability is initially measured at the
present value of the unpaid lease payments at the lease commencement date. Key estimates and judgments include how
the Company determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) the lease
term and (3) lease payments.
Unpaid lease payments are discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Company's incremental borrowing rate. Generally, the Company cannot determine the interest rate implicit
in the lease because it does not have access to the lessor's estimated residual value or the amount of the lessor's deferred
initial direct costs. Therefore, the Company generally uses its incremental borrowing rate as the discount rate for the lease.
The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to
borrow an amount equal to the lease payments under similar terms. Because the Company does not generally borrow on a
collateralized basis, it uses market-based rates as an input to derive an appropriate incremental borrowing rate, adjusted for
the lease term and the effect on that rate of designating specific collateral with a value equal to the unpaid lease payments
for that lease. The Company also contemplates adjusting the discount rate for the amount of the lease payments.
The Company's lease contracts may include options to extend the lease following the initial term or terminate the lease prior
to the end of the initial term. In most instances, at the commencement of the leases, the Company has determined that it is
not reasonably certain to exercise either of these options; accordingly, these options are generally not considered in
determining the initial lease term. At the renewal of an expiring lease, the Company reassesses options in the contract that
it is reasonably certain to exercise in its measurement of lease term.
For lease agreements entered into or reassessed after the adoption of Accounting Standards Codification ("ASC") 842, the
Company has elected the practical expedient to account for the lease and non-lease components as a single lease
component. Therefore, for those leases, the lease payments used to measure the lease liability include all of the fixed
consideration in the contract.
Variable lease payments associated with the Company's leases are recognized upon occurrence of the event, activity, or
circumstance in the lease agreement on which those payments are assessed. Variable lease payments are presented in the
Company's Consolidated Statements of Operations in the same line item as expense arising from fixed lease payments.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 53
Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease
expense for these leases on a straight-line basis over the lease term.
Concessions
In April 2020, the 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 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.
IMPAIRMENT OF LONG-LIVED ASSETS, INTANGIBLE ASSETS AND GOODWILL
Long-lived assets, which include property, plant and equipment, lease ROU assets, capitalized implementation costs for
cloud computing arrangements, and intangible assets with finite lives, are measured for impairment only when events or
circumstances indicate the carrying value may be impaired. In these cases, the Company estimates the future undiscounted
cash flows to be derived from the asset or asset group to determine whether a potential impairment exists. If the sum of the
estimated undiscounted cash flows is less than the carrying value of the asset, the Company recognizes an impairment
loss, measured as the amount by which the carrying value exceeds the estimated fair value of the asset.
The Company reviews and tests its intangible assets with indefinite lives and goodwill for impairment in the fourth quarter of
each year and when events or changes in circumstances indicate that the carrying amount of such assets may be impaired.
The Company's intangible assets with indefinite lives consist of trademarks and trade names. In the impairment test for
goodwill, the estimated fair value of the reporting unit is compared with the carrying amount of that reporting unit. In the
impairment tests for trademarks and trade names, the Company compares the estimated fair value of each asset to its
carrying amount. For goodwill and trademarks and trade names, if the carrying amount exceeds its estimated fair value, the
Company calculates an impairment as the excess of carrying amount over the estimate of fair value.
Impairment charges, if any, are classified as a component of SG&A expense.
INCOME TAXES
Income taxes are based on amounts of taxes payable or refundable in the current year and on expected future tax
consequences of events that are recognized in the financial statements in different periods than they are recognized in tax
returns. As a result of timing of recognition and measurement differences between financial accounting standards and
income tax laws, temporary differences arise between amounts of pre-tax financial statement income and taxable income
and between reported amounts of assets and liabilities in the Consolidated Balance Sheets and their respective tax bases.
Deferred income tax assets and liabilities reported in the Consolidated Balance Sheets reflect estimated future tax effects
attributable to these temporary differences and to net operating loss and net capital loss carryforwards, based on tax rates
expected to be in effect for years in which the differences are expected to be settled or realized. Realization of deferred tax
assets is dependent on future taxable income in specific jurisdictions. Valuation allowances are used to reduce deferred tax
assets to amounts considered likely to be realized.
Accrued income taxes in the Consolidated Balance Sheets include unrecognized income tax benefits relating to uncertain
tax positions, including related interest and penalties, appropriately classified as current or non-current. The Company
recognizes the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on
examination by the relevant taxing authority based on the technical merits of the position. The tax benefits recognized in the
financial statements from such positions are then measured based on the largest benefit that has a greater than 50%
likelihood of being realized upon ultimate settlement with the relevant tax authority. In making this determination, the
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 54
Company assumes that the taxing authority will examine the position and that it will have full knowledge of all relevant
information. Changes in the Company's assessment may result in the recognition of a tax benefit or an additional charge to
the tax provision in the period our assessment changes.
DERIVATIVES
The effective portion of changes in fair values of outstanding cash flow hedges is recorded in Other comprehensive income
(loss) until earnings are affected by the hedged transaction, and any ineffective portion is included in current income. In
most cases, amounts recorded in Other comprehensive income (loss) will be released to earnings after maturity of the
related derivative. The Consolidated Statements of Operations classification of effective hedge results is the same as that of
the underlying exposure. Results of hedges of product costs are recorded in Cost of sales when the underlying hedged
transactions affect earnings. Results of hedges of revenue are recorded in Net sales when the underlying hedged
transactions affect earnings. Unrealized derivative gains and losses, which are recorded in assets and liabilities,
respectively, are non-cash items and therefore are taken into account in the preparation of the Consolidated Statements of
Cash Flows based on their respective balance sheet classifications.
FOREIGN CURRENCY TRANSLATION
For the Company's subsidiaries whose functional currency is not the United States dollar, assets and liabilities have been
translated into United States dollars using the exchange rates in effect at period end, and the sales and expenses have
been translated into United States dollars using average exchange rates in effect during the period. The foreign currency
translation adjustments are included as a separate component of Accumulated other comprehensive income (loss) in the
Consolidated Balance Sheets.
REVENUE RECOGNITION
Revenues are recognized when the Company's performance obligations are satisfied as evidenced by transfer of control of
promised goods to customers or consumers, in an amount that reflects the consideration the Company expects to be
entitled to receive in exchange for those goods or services. Within the Company's wholesale channel, control generally
transfers to the customer upon shipment to, or upon receipt by, the customer depending on the terms of sale with the
customer. Within the Company's direct-to-consumer ("DTC") channel, control generally transfers to the consumer at the
time of sale within retail stores and concession-based arrangements and generally upon shipment to the consumer with
respect to e-commerce transactions.
The amount of consideration the Company expects to be entitled to receive and recognize as Net sales across both
wholesale and DTC channels varies with changes in sales returns and other accommodations and incentives offered. The
Company estimates expected sales returns and other accommodations, such as chargebacks and markdowns and records
a sales reserve to reduce Net sales. These estimates are based on historical rates of product returns and claims, as well as
events and circumstances that indicate changes to such historical rates. However, actual returns and claims in any future
period are inherently uncertain and thus may differ from the estimates. As a result, the Company adjusts estimates of
revenue at the earlier of when the most likely amount of consideration the Company expects to receive changes or when
the amount of consideration becomes fixed. If actual or expected future returns and claims are significantly greater or lower
than the sales reserves established, the Company records an adjustment to Net sales in the period in which it made such
determination.
Licensing income, which is presented separately as Net licensing income on the Consolidated Statements of Operations
and represents less than 1% of total revenue, is recognized over time based on the greater of contractual minimum royalty
guarantees and actual, or estimated, sales of licensed products by the Company's licensees.
The Company expenses sales commissions when incurred, which is generally at the time of sale, because the amortization
period would have been one year or less. These costs are recorded within SG&A expenses.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 55
Revenue recognized from contracts with customers is recorded net of sales taxes, value added taxes, or similar taxes that
are collected on behalf of local taxing authorities.
Shipping and Handling Costs
The Company treats shipping and handling activities as fulfillment costs, and as such recognize the costs for these activities
at the time related revenue is recognized. The majority of these costs, typically associated with warehousing and handling of
inventory, are generally recorded as SG&A expenses, while the direct costs associated with shipping goods to customers
and consumers are recorded as Costs of sales. Shipping and handling fees billed to customers are recorded as Net sales.
Shipping and handling costs recorded as a component of SG&A expenses and were $114.4 million, $98.0 million and $89.2
million for the years ended December 31, 2021, 2020 and 2019, respectively.
COST OF SALES
Cost of sales consists of all direct product costs, including shipping, duties and importation costs, as well as specific
provisions for excess, close-out or slow-moving inventory. In addition, certain products carry life-time or limited warranty
provisions for defects in quality and workmanship. Cost of sales includes a warranty reserve established for these
provisions at the time of sale to cover estimated costs based on the Company's history of warranty repairs and
replacements.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
SG&A expenses consists of personnel-related costs, advertising, depreciation and amortization, occupancy, and other
selling and general operating expenses related to the Company's business functions.
STOCK-BASED COMPENSATION
Stock-based compensation cost is estimated at the grant date based on the award's fair value and is recorded as expense
when recognized. For stock options and service-based restricted units, stock-based compensation cost is recognized over
the expected requisite service period using the straight-line attribution method. For performance-based restricted stock
units, stock-based compensation cost is recognized based on the Company's assessment of the probability of achieving
performance targets in the reporting period. The Company estimates forfeitures for stock-based awards granted, but which
are not expected to vest.
ADVERTISING COSTS
Advertising costs, including marketing and demand creation spending, are expensed in the period incurred and are included
in SG&A expenses. Total advertising expense, including cooperative advertising costs, was $184.8 million, $141.3 million
and $166.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. Cooperative advertising costs are
expensed when the related revenues are recognized and included in SG&A expenses.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In November 2021, the FASB issued ASU No. 2021-10 (“ASU 2021-10”), Government Assistance (Topic 832): Disclosures
by Business Entities about Government Assistance, to increase transparency of government assistance including the
disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on
an entity’s financial statements. ASU 2021-10 is effective for annual periods beginning after December 15, 2021. Early
adoption is permitted. The impact of this new standard will depend on the amount of future government assistance received,
if any.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 56
NOTE 3 — REVENUES
DISAGGREGATED REVENUE
As disclosed below in Note 17, the Company has four 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 our operating segment Net sales by product category and channel, which the Company
believes provides a meaningful depiction how the nature, timing, and uncertainty of Net sales are affected by economic
factors:
(in thousands)
Product category net sales
Year Ended December 31, 2021
U.S.
LAAP
EMEA
Canada
Total
Apparel, Accessories and Equipment . $ 1,624,542 $
Footwear . . . . . . . . . . . . . . . . . . . . .
435,758
347,071 $
263,432 $
154,109 $ 2,389,154
118,428
118,628
64,434
737,248
Total . . . . . . . . . . . . . . . . . . . . . . $ 2,060,300 $
465,499 $
382,060 $
218,543 $ 3,126,402
Channel net sales
Wholesale . . . . . . . . . . . . . . . . . . . . . $
DTC . . . . . . . . . . . . . . . . . . . . . . . . .
983,799 $
215,448 $
317,104 $
144,008 $ 1,660,359
1,076,501
250,051
64,956
74,535
1,466,043
Total . . . . . . . . . . . . . . . . . . . . . . $ 2,060,300 $
465,499 $
382,060 $
218,543 $ 3,126,402
(in thousands)
Product category net sales
Year Ended December 31, 2020
U.S.
LAAP
EMEA
Canada
Total
Apparel, Accessories and Equipment .
Footwear . . . . . . . . . . . . . . . . . . . . .
1,231,835
371,948
320,616
103,873
197,052
101,855
118,116 $ 1,867,619
56,259
633,935
Total . . . . . . . . . . . . . . . . . . . . . . $ 1,603,783 $
424,489 $
298,907 $
174,375 $ 2,501,554
Channel net sales
Wholesale . . . . . . . . . . . . . . . . . . . . .
DTC . . . . . . . . . . . . . . . . . . . . . . . . .
838,388
765,395
198,083
226,406
249,161
49,746
117,628 $ 1,403,260
56,747
1,098,294
Total . . . . . . . . . . . . . . . . . . . . . . $ 1,603,783 $
424,489 $
298,907 $
174,375 $ 2,501,554
(in thousands)
Product category net sales
Year Ended December 31, 2019
U.S.
LAAP
EMEA
Canada
Total
Apparel, Accessories and Equipment .
Footwear . . . . . . . . . . . . . . . . . . . . .
1,562,487
380,520
395,002
134,280
245,381
121,691
138,292 $ 2,341,162
64,825
701,316
Total . . . . . . . . . . . . . . . . . . . . . . $ 1,943,007 $
529,282 $
367,072 $
203,117 $ 3,042,478
Channel net sales
Wholesale . . . . . . . . . . . . . . . . . . . . .
DTC . . . . . . . . . . . . . . . . . . . . . . . . .
1,049,300
893,707
272,389
256,893
312,347
54,725
148,760 $ 1,782,796
1,259,682
54,357
Total . . . . . . . . . . . . . . . . . . . . . . $ 1,943,007 $
529,282 $
367,072 $
203,117 $ 3,042,478
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 57
PERFORMANCE OBLIGATIONS
For the years December 31, 2021 and 2020, 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 is
not material.
CONTRACT BALANCES
As of December 31, 2021 and 2020, contract liabilities included in Accrued Liabilities on the Consolidated Balance Sheets,
which consisted of obligations associated with the Company's gift card and customer loyalty programs, were not material.
NOTE 4 — CONCENTRATIONS
TRADE RECEIVABLES
The Company had one customer that accounted for approximately 14.3% and 14.3% of Accounts receivable, net at
December 31, 2021 and 2020, respectively. No single customer accounted for 10% or more of Net sales for any of the
years ended December 31, 2021, 2020 or 2019.
NOTE 5 — PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment, net consisted of the following:
(in thousands)
Land and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Buildings and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Machinery, software and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Furniture and fixtures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
December 31,
2021
2020
33,107 $
209,792
382,337
99,946
155,872
12,694
893,748
33,231
209,251
388,808
96,521
152,852
3,376
884,039
(574,247)
309,792
Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(602,660)
291,088 $
$
Depreciation expense for Property, plant and equipment, net was $54.2 million, $60.9 million, and $59.8 million for the years
ended December 31, 2021, 2020 and 2019, respectively.
Impairment charges for property, plant and equipment are included in SG&A expense and were $0.5 million, $5.0 million,
and $0.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. Charges during the years ended
December 31, 2021, 2020 and 2019 were recorded primarily for certain underperforming retail stores in the U.S., EMEA and
LAAP regions.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 58
NOTE 6 — INTANGIBLE ASSETS, NET AND GOODWILL
Intangible assets, net consisted of the following:
(in thousands)
Intangible assets with definite lives:
December 31,
2021
2020
Patents and purchased technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Customer relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross carrying amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated amortization: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Patents and purchased technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net carrying amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets with indefinite lives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
14,198 $
23,000
37,198
(14,198)
(19,013)
(33,211)
3,987
97,921
101,908 $
14,198
23,000
37,198
(14,198)
(17,363)
(31,561)
5,637
97,921
103,558
Amortization expense for intangible assets subject to amortization was $1.7 million, $2.5 million and $3.0 million for the
years ended December 31, 2021, 2020 and 2019 respectively.
Impairment charges for intangible assets with indefinite lives are included in SG&A expense. For the year ended December
31, 2021 and 2019, there were no impairments recorded for intangible assets with indefinite lives. For the year ended
December 31, 2020, an impairment charge of $17.5 million was recorded. The impairment of the prAna trademark and trade
name intangible asset was determined as part of the annual impairment test. The fair value was estimated using a relief
from royalty method under the income approach. Cash flow projections were developed in part from the Company's annual
planning process. The discount rate was the estimated weighted-average costs of capital of the reporting unit from a
market-participant perspective. The decline in estimated fair value from the fourth-quarter 2020 impairment test compared to
the fourth-quarter 2019 impairment test reflected a lower estimated royalty rate and a decline in forecasted revenues.
Substantially all of the Company's goodwill is recorded in the U.S. segment. The Company determined that goodwill was not
impaired for the years ended December 31, 2021, 2020, and 2019.
The following table presents the estimated annual amortization expense for the years 2022 through 2026:
(in thousands)
2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,650
1,650
688
—
—
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 59
NOTE 7 — SHORT-TERM BORROWINGS AND CREDIT LINES
DOMESTIC CREDIT FACILITY
The Company has an unsecured, committed revolving credit facility that provides for funding up to $500.0 million. This credit
agreement matures on December 30, 2025. Interest, payable monthly, is based on the Company's option of either LIBOR
plus an applicable margin or a base rate. Base rate is defined as the highest of the following, plus an applicable margin:
•
•
•
the administrative agent's prime rate;
the higher of the federal funds rate or the overnight bank funding rate set by the Federal Reserve Bank of New
York, plus 0.50%; or
the one-month LIBOR plus 1.00%.
This credit agreement requires the Company to comply with certain financial covenants covering the Company's funded
debt ratio and asset coverage ratio. The credit agreement also includes customary covenants that, among other things, limit
or restrict the ability of the Company and its subsidiaries to incur additional indebtedness and liens, engage in mergers,
acquisitions and dispositions, and engage in transactions with affiliates, as well as restrict certain payments, including
dividends and share buybacks.
At December 31, 2021 and 2020, the Company was in compliance with all associated covenants and there was no balance
outstanding.
INTERNATIONAL CREDIT FACILITY
The Company's European subsidiary has available an unsecured, committed line of credit, which are guaranteed by the
Company, and provides for borrowing up to a maximum of €4.4 million (approximately US$5.0 million) at December 31,
2021, with borrowings to accrue interest at a base rate plus 75 basis points.
At December 31, 2021 and 2020, there was no balance outstanding.
NOTE 8 — ACCRUED LIABILITIES
Accrued liabilities consisted of the following:
(in thousands)
Sales reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Accrued salaries, bonus, paid time off and other benefits . . . . . . . . . . . . . . . .
Accrued import duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes other than income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Product warranties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
December 31,
2021
2020
98,998 $
121,074
17,272
27,930
13,645
37,566
83,175
80,074
18,522
15,002
14,745
45,760
$
316,485 $
257,278
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 60
A reconciliation of product warranties is as follows:
(in thousands)
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . $
Provision for warranty claims . . . . . . . . . . . . . . . . . . . . .
Warranty claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . $
Year Ended December 31,
2021
2020
2019
14,745 $
14,466 $
2,179
(2,917)
(362)
3,033
(3,128)
374
13,645 $
14,745 $
13,186
5,152
(3,810)
(62)
14,466
NOTE 9 — LEASES
The components of lease cost consisted of the following:
(in thousands)
Operating lease cost . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Variable lease cost . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short term lease cost . . . . . . . . . . . . . . . . . . . . . . . . . .
Year Ended December 31,
2021
2020
2019
71,996 $
104,906 $
67,745
5,612
58,391
9,600
78,609
60,085
9,013
$
145,353 $
172,897 $
147,707
For the year ended December 31, 2021, operating lease costs included $0.5 million of ROU impairment charges related to
underperforming retail locations, as well as a gain of $8.6 million from the completion of lease termination negotiations and
settlements related to certain prior year retail store closures. For the year ended December 31, 2020, operating lease cost
included $16.5 million of accelerated amortization for retail locations that permanently closed during 2020 for which the
related lease liabilities had not been extinguished as of December 31, 2020 due to ongoing negotiations with the landlords.
In addition, for the year ended December 31, 2020, operating lease cost included $7.0 million of ROU asset impairment
charges related to underperforming retail locations primarily in the U.S. segment for the year ended December 31, 2020.
There was no impairment recorded for the year ended December 31, 2019.
In the periods presented, lease concessions reducing variable lease expense were not material.
The following table presents supplemental cash flow information:
(in thousands)
Cash paid for amounts included in the measurement of
operating lease liabilities . . . . . . . . . . . . . . . . . . . . . . $
Operating lease liabilities arising from obtaining ROU
assets(1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Reductions to ROU assets resulting from reductions to
operating lease liabilities . . . . . . . . . . . . . . . . . . . . . . $
Year Ended December 31,
2021
2020
2019
83,827 $
82,083 $
77,350
53,168 $
22,416 $
471,396
118 $
6,400 $
783
(1) The year ended December 31, 2019 reflects the impact from amount initially capitalized in conjunction with the adoption of ASC 842.
(2) Includes amounts added to the carrying amount of lease liabilities resulting from lease modifications and reassessments.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 61
The following table presents supplemental balance sheet information related to leases:
December 31,
2021
2020
Weighted average remaining lease term . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted average discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.72 years
3.25 %
6.16 years
3.72 %
The following table presents the future maturities of lease liabilities as of December 31, 2021:
(in thousands)
2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total lease payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: imputed interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total lease liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: current obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
78,228
72,487
65,678
55,817
49,095
106,326
427,631
(42,536)
385,095
(67,429)
317,666
As of December 31, 2021, the Company has additional operating lease commitments that have not yet commenced of
$16.2 million. These leases will commence in 2022 with lease terms of approximately one to 10 years.
NOTE 10 — INCOME TAXES
INCOME TAX PROVISION
Consolidated income from continuing operations before income taxes consisted of the following:
(in thousands)
United States operations . . . . . . . . . . . . . . . . . . . . . . . . $
Foreign operations . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before income tax . . . . . . . . . . . . . . . . . . . . $
Year Ended December 31,
2021
2020
2019
318,306 $
133,205
451,511 $
29,154 $
110,369
139,523 $
247,642
157,787
405,429
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 62
The components of the provision for income taxes consisted of the following:
(in thousands)
Current:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
State and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-United States . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-United States . . . . . . . . . . . . . . . . . . . . . . . . . .
Year Ended December 31,
2021
2020
2019
51,790 $
18,435 $
14,429
33,825
100,044
(3,042)
(266)
667
(2,641)
4,929
26,897
50,261
(14,728)
(5,097)
1,074
(18,751)
41,148
7,458
30,930
79,536
(7,887)
(999)
4,290
(4,596)
74,940
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . $
97,403 $
31,510 $
The following is a reconciliation of the statutory federal income tax rate to the effective rate reported in the financial
statements:
(percent of income before tax)
Provision for federal income taxes at the statutory rate . .
State and local income taxes, net of federal benefit . . . . .
Non-United States income taxed at different rates . . . . . .
Foreign tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustment to deferred taxes . . . . . . . . . . . . . . . . . . . . .
Global Intangible Low-Taxed Income . . . . . . . . . . . . . . .
Research credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Withholding taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excess tax benefits from stock plans . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual provision for income taxes . . . . . . . . . . . . . . .
Year Ended December 31,
2021
2020
2019
21.0 %
21.0 %
21.0 %
2.5
2.7
(2.4)
—
0.1
(0.4)
(1.4)
(0.9)
0.4
1.5
2.1
(0.9)
(1.2)
0.1
(1.4)
0.5
(0.8)
1.7
1.7
(0.1)
(0.1)
(2.1)
—
(0.5)
0.3
(1.6)
(0.1)
21.6 %
22.6 %
18.5 %
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 63
DEFERRED INCOME TAX BALANCES
Significant components of the Company's deferred taxes consisted of the following:
(in thousands)
Deferred tax assets:
Accruals and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Lease liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capitalized inventory costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net operating loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ROU lease asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liability associated with future repatriations . . . . . . . . . . . . . . .
Foreign currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
December 31,
2021
2020
40,518 $
81,012
23,950
13,881
6,329
22,767
22,076
387
—
2,164
213,084
(22,502)
190,582
(10,414)
(3,447)
(68,148)
(13,069)
(3,383)
(98,461)
92,121 $
29,950
84,346
24,222
14,610
6,078
24,253
29,358
844
2,418
2,304
218,383
(23,534)
194,849
(16,206)
(2,085)
(66,629)
(19,008)
—
(103,928)
90,921
Subsequent to the issuance of the Company’s December 31, 2020 consolidated financial statements, the Company
identified that the Lease liability and corresponding ROU lease asset shown in the table above had been presented net with
accruals and allowances, rather than gross. As a result, 2020 amounts in the table above have been revised from balances
previously reported. The Company has assessed the qualitative and quantitative impact of the misstatement and
determined it is not material to the 2020 financial statements. Further, the Company had previously recorded Sales reserves
within Capitalized inventory costs, rather than presenting them separately and has reclassified such amounts to conform to
the current year presentation.
The Company has foreign net operating loss carryforwards of $87.5 million as of December 31, 2021, of which $68.4 million
have an unlimited carryforward period and $19.1 million expire between 2025 and 2040. The net operating losses result in
deferred tax assets of $22.8 million and $24.3 million and were subject to a valuation allowance of $20.2 million and $21.2
million at December 31, 2021 and 2020, respectively.
At December 31, 2021, the Company had accumulated undistributed earnings generated by the Company's foreign
subsidiaries of $333.9 million. As a result of the Tax Cuts and Jobs Act, these earnings have been subject to U.S. tax, so
any further taxes associated with such earnings would generally be limited to foreign withholding and state taxes. The
Company has recorded a deferred tax liability for these, except in the jurisdictions where we intend to indefinitely reinvest
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 64
the earnings.
UNRECOGNIZED TAX BENEFITS
The Company conducts business globally, and, as a result, the Company or one or more of its subsidiaries file income tax
returns in the United States federal jurisdiction and various state and foreign jurisdictions. The Company is subject to
examination by taxing authorities throughout the world, including such major jurisdictions as Canada, China, France, Japan,
South Korea, Switzerland, and the United States. The Company has effectively settled Canadian tax examinations of all
years through 2012, United States tax examinations of all years through 2016, Japanese tax examinations of all years
through 2019, France tax examinations of all years through 2016, Swiss tax examinations of all years through 2016, Italy tax
examinations of all years through 2016, and China tax examinations of all years through 2018. The Korean National Tax
Service concluded an audit of the Company's 2009 through 2013 corporate income tax returns in 2014, and an audit of the
Company's 2014 corporate income tax return in 2016. Due to the nature of the findings in both of these audits, the
Company has invoked the Mutual Agreement Procedures outlined in the United States-Korean income tax treaty. The
Company does not anticipate that adjustments relative to these findings, or any other ongoing tax audits, will result in
material changes to its financial condition, results of operations or cash flows. As of December 31, 2021, the Company was
under audit in the United States for tax years 2017 and 2018, Canada for tax years 2017 and 2018, and Korea for tax years
2016 through 2020. Other than the findings and audits previously noted, the Company is not currently under examination in
any other major jurisdiction.
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
(in thousands)
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . $
Increases related to prior year tax positions . . . . . . . . . .
Decreases related to prior year tax positions . . . . . . . . . .
Increases related to current year tax positions . . . . . . . .
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expiration of statute of limitations . . . . . . . . . . . . . . . . . .
Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . $
Year Ended December 31,
2021
2020
2019
14,493 $
355
(1,447)
883
—
(429)
13,855 $
12,478 $
1,903
(162)
906
—
(632)
14,493 $
11,064
4,374
(5,423)
4,991
(1,464)
(1,064)
12,478
Due to the potential for resolution of income tax audits currently in progress, and the expiration of various statutes of
limitation, it is reasonably possible that the unrecognized tax benefits balance may change within the twelve months
following December 31, 2021 by a range of zero to $6.5 million. Open tax years, including those previously mentioned,
contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the
amount, timing, or inclusion of revenue and expenses or the sustainability of income tax credits for a given examination
cycle.
Unrecognized tax benefits of $12.9 million, $13.6 million and $11.5 million would affect the effective tax rate if recognized at
December 31, 2021, 2020 and 2019, respectively.
The Company recognizes interest expense and penalties related to income tax matters in Income tax expense. The
Company recognized a net increase of accrued interest and penalties of $0.3 million in 2021, and a net increase of accrued
interest and penalties of $0.8 million in 2020 and a net reversal of accrued interest and penalties of $0.5 million in 2019, all
of which related to uncertain tax positions. The Company had $2.6 million and $2.3 million of accrued interest and penalties
related to uncertain tax positions at December 31, 2021 and 2020, respectively.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 65
NOTE 11 — RETIREMENT SAVINGS PLANS
401(K) PROFIT-SHARING PLAN
The Company has a 401(k) profit-sharing plan, which covers substantially all United States employees. Participation begins
the first day of the quarter following completion of 30 days of service. The Company, with approval of the Board of Directors,
may elect to make discretionary matching or non-matching contributions. Costs recognized for Company contributions to the
plan were $10.7 million, $10.1 million and $9.4 million for the years ended December 31, 2021, 2020 and 2019,
respectively.
DEFERRED COMPENSATION PLAN
The Company sponsors a nonqualified retirement savings plan for certain senior management employees whose
contributions to the tax qualified 401(k) plan would be limited by provisions of the Internal Revenue Code. This plan allows
participants to defer receipt of a portion of their salary and incentive compensation and to receive matching contributions for
a portion of the deferred amounts. Costs recognized for Company matching contributions to the plan totaled $0.2 million,
$0.4 million and $0.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. Participants earn a
return on their deferred compensation based on investment earnings of participant-selected investments. Deferred
compensation, including accumulated earnings on the participant-directed investment selections, is distributable in cash at
participant-specified dates or upon retirement, death, disability, or termination of employment.
The Company has purchased specific money market and mutual funds in the same amounts as the participant-directed
investment selections underlying the deferred compensation liabilities. These investment securities and earnings thereon,
held in an irrevocable trust, are intended to provide a source of funds to meet the deferred compensation obligations,
subject to claims of creditors in the event of the Company's insolvency. Changes in the market value of the participants'
investment selections are recorded as an adjustment to the investments and as unrealized gains and losses in SG&A
expense. A corresponding adjustment of an equal amount is made to the deferred compensation liabilities and
compensation expense, which is included in SG&A expense.
At December 31, 2021 and 2020, the long-term portion of the liability to participants under this plan was $21.8 million and
$18.7 million, respectively, and was recorded in Other long-term liabilities. At December 31, 2021 and 2020, the current
portion of the participant liability was $1.0 million and $1.2 million, respectively, and was recorded in Accrued liabilities. At
December 31, 2021 and 2020, the fair value of the long-term portion of the investments related to this plan was $21.8
million and $18.7 million, respectively, and was recorded in Other non-current assets. At December 31, 2021 and 2020, the
current portion of the investments related to this plan was $1.0 million and $1.2 million, respectively, and was recorded in
Short-term investments.
NOTE 12 — COMMITMENTS AND CONTINGENCIES
LITIGATION
The Company is 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.
Management has considered facts related to legal and regulatory matters and opinions of counsel handling these matters,
and does not believe the ultimate resolution of these proceedings will have a material adverse effect on the Company's
financial position, results of operations or cash flows.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 66
INDEMNITIES AND GUARANTEES
During its normal course of business, the Company has made certain indemnities, commitments and guarantees under
which it may be required to make payments in relation to certain transactions. These include (i) intellectual property
indemnities to the Company's customers and licensees in connection with the use, sale or license of Company products,
(ii) indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease,
(iii) indemnities to customers, vendors and service providers pertaining to claims based on the negligence or willful
misconduct of the Company, (iv) executive severance arrangements, and (v) indemnities involving the accuracy of
representations and warranties in certain contracts. The duration of these indemnities, commitments and guarantees varies,
and in certain cases, may be indefinite. The majority of these indemnities, commitments and guarantees do not provide for
any limitation of the maximum potential for future payments the Company could be obligated to make. The Company has
not recorded any liability for these indemnities, commitments and guarantees in the accompanying Consolidated Balance
Sheets.
NOTE 13 — SHAREHOLDERS' EQUITY
Since the inception of the Company's stock repurchase plan in 2004 through December 31, 2021, the Company's Board of
Directors has authorized the repurchase of $1.5 billion of the Company's common stock. Shares of the Company's common
stock may be purchased in the open market or through privately negotiated transactions, subject to market 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 December 31, 2021, the Company had repurchased 28.5 million shares at an aggregate purchase
price of $1,183.7 million and had $316.3 million remaining available. During the year ended December 31, 2021, the
Company purchased an aggregate of $165.9 million of common stock under this program.
NOTE 14 — STOCK-BASED COMPENSATION
At its Annual Meeting held on June 3, 2020, the Company’s shareholders approved the Company’s 2020 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 3.0 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. At December 31, 2021, 3,643,701 shares were available for future grants under the 2020
Plan and up to 94,528 additional shares that were previously authorized and available for issuance under the Prior Plan
may become available for future grants under the 2020 Plan.
The Company's Stock Incentive 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. The Company uses original issuance
shares to satisfy share-based payments.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 67
STOCK-BASED COMPENSATION EXPENSE
Stock-based compensation expense consisted of the following:
(in thousands)
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
SG&A expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pre-tax stock-based compensation expense . . . . . . .
Income tax benefits . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total stock-based compensation expense, net of tax . $
Year Ended December 31,
2021
2020
2019
313 $
303 $
18,813
19,126
(4,465)
14,661 $
17,475
17,778
(4,015)
13,763 $
278
17,554
17,832
(4,009)
13,823
The Company realized a tax benefit for the deduction from stock-based award transactions of $8.3 million, $4.1 million and
$9.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.
STOCK OPTIONS
Options to purchase the Company's common stock are granted at exercise prices equal to or greater than the fair market
value of the Company's common stock on the date of grant. Options generally vest and become exercisable ratably on an
annual basis over a period of four years and expire ten years from the date of the grant.
The fair value of stock options is determined using the Black-Scholes model. Key inputs and assumptions used in the model
include the exercise price of the award, the expected option term, the expected stock price volatility of the Company's stock
over the option's expected term, the risk-free interest rate over the option's expected term, and the Company's expected
annual dividend yield. The option's expected term is derived from historical option exercise behavior and the option's terms
and conditions, which the Company believes provide a reasonable basis for estimating an expected term. The expected
volatility is estimated based on observations of the Company's historical volatility over the most recent term commensurate
with the expected term. The risk-free interest rate is based on the United States Treasury yield approximating the expected
term. The dividend yield is based on the expected cash dividend payouts.
The weighted average assumptions for stock options granted and resulting fair value is as follows:
Expected option term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected stock price volatility . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-free interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected annual dividend yield . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted average grant date fair value per stock option granted .
Year Ended December 31,
2021
2020
2019
4.35 years
4.39 years
4.50 years
24.88%
0.54%
1.09%
$17.95
21.19%
1.14%
1.13%
$14.67
27.14%
2.49%
1.03%
$22.51
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 68
The following table summarizes stock option activity under the Plan:
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life
Aggregate
Intrinsic
Value (1)
(in thousands)
Number of
Shares
1,604,621 $
395,653
(68,275)
(452,325)
1,479,674
660,071
(78,163)
(142,419)
1,919,163
687,772
(213,444)
(459,957)
1,933,534 $
53.86
93.98
74.10
43.76
66.74
87.25
83.76
48.58
74.45
95.90
89.96
62.58
83.19
6.95 $
48,703
7.11
49,930
7.19
29,489
7.26 $
29,889
Options outstanding at January 1, 2019 . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cancelled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Options outstanding at December 31, 2019 . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cancelled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Options outstanding at December 31, 2020 . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cancelled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Options outstanding at December 31, 2021 . . . . . . . . . .
Options vested and expected to vest at December 31,
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Options exercisable at December 31, 2021 . . . . . . . . . .
21,744
(1) The aggregate intrinsic value above represents pre-tax intrinsic value that would have been realized if all options had been exercised on the last
1,844,333 $
773,731 $
7.18 $
5.40 $
29,397
82.67
69.79
business day of the period indicated, based on the Company's closing stock price on that day.
Stock option compensation expense for the years ended December 31, 2021, 2020 and 2019 was $6.9 million, $7.0 million
and $6.2 million, respectively. At December 31, 2021, unrecognized costs related to outstanding stock options totaled $13.1
million, before any related tax benefit. The unrecognized costs related to stock options are being amortized over the related
vesting period using the straight-line attribution method. These unrecognized costs related to stock options are being
amortized over a weighted average period of 2.29 years. The aggregate intrinsic value of stock options exercised was $19.2
million, $4.9 million and $26.8 million for the years ended December 31, 2021, 2020 and 2019, respectively. The total cash
received as a result of stock option exercises for the years ended December 31, 2021, 2020 and 2019 was $28.8 million,
$6.9 million and $19.8 million, respectively.
RESTRICTED STOCK UNITS
Service-based restricted stock units are granted at no cost to key employees and generally vest over a period of four years.
Performance-based restricted stock units are granted at no cost to certain members of the Company's senior executive
team, excluding the Chief Executive Officer. Performance-based restricted stock units granted after 2009 generally vest
over a performance period of between two and three years. Restricted stock units vest in accordance with the terms and
conditions established by the Compensation Committee of the Board of Directors, and are based on continued service and,
in some instances, on individual performance or Company performance or both.
The fair value of service-based and performance-based restricted stock units that are not eligible for dividends are valued at
the closing price of the Company’s common stock on the date of grant, reduced by the present value of dividends not
received during the vesting period. Other assumptions incorporated into the grant date fair value include the vesting period
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 69
and the Company's expected annual dividend yield.
The weighted average assumptions for restricted stock units granted and resulting fair value are as follows:
Vesting period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected annual dividend yield . . . . . . . . . . . . . . . . . . .
Weighted average grant date fair value per restricted
stock unit granted . . . . . . . . . . . . . . . . . . . . . . . . . . .
Year Ended December 31,
2021
3.77 years
1.04%
2020
3.79 years
1.18%
2019
3.76 years
0.97%
$96.07
$78.90
$94.58
The following table summarizes the restricted stock unit activity under the Plan:
Number of
Shares
Weighted
Average
Grant Date Fair
Value Per Share
62.38
94.58
60.45
177,618
(33,320)
(163,195)
424,001 $
Restricted stock units outstanding at January 1, 2019 . . . . . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vested(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restricted stock units outstanding at December 31, 2019 . . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vested(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restricted stock units outstanding at December 31, 2020 . . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vested(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restricted stock units outstanding at December 31, 2021 . . . . . . . . . . . . . . . .
88.88
(1) The number of vested units includes shares withheld by the Company to pay up to maximum statutory requirements to taxing authorities on behalf of the
employee. For the years ended December 31, 2021, 2020 and 2019, the Company withheld 56,792, 54,543 and 56,843 shares, respectively, to satisfy
$5.8 million, $4.5 million and $5.8 million of employees' tax obligations, respectively.
369,592 $
(164,088)
(160,229)
(68,399)
(35,918)
176,804
425,275
216,318
405,104
78.90
79.36
75.61
68.72
96.07
80.37
86.38
72.35
76.45
Restricted stock unit compensation expense for the years ended December 31, 2021, 2020 and 2019 was $12.2 million,
$10.8 million and $11.6 million, respectively. At December 31, 2021, unrecognized costs related to restricted stock units
totaled $19.1 million, before any related tax benefit. The unrecognized costs related to restricted stock units are being
amortized over the related vesting period using the straight-line attribution method. These unrecognized costs at December
31, 2021 are expected to be recognized over a weighted average period of 2.09 years. The total grant date fair value of
restricted stock units vested during the years ended December 31, 2021, 2020 and 2019 was $12.4 million, $11.0 million
and $9.9 million, respectively.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 70
NOTE 15 — EARNINGS PER SHARE
Earnings 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.
A reconciliation of the common shares used in the denominator for computing basic and diluted EPS is as follows:
(in thousands, except per share amounts)
Weighted average common shares outstanding, used in
computing basic earnings per share . . . . . . . . . . . . . .
Effect of dilutive stock options and restricted stock units .
Weighted average common shares outstanding, used in
computing diluted earnings per share . . . . . . . . . . . . .
Earnings per share:
Year Ended December 31,
2021
2020
2019
65,942
473
66,415
66,376
396
66,772
67,837
656
68,493
4.87
4.83
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
5.37 $
5.33 $
1.63 $
1.62 $
Stock options and service-based restricted stock units, and performance-based restricted stock representing 843,578,
1,122,935 and 405,928 shares of common stock for the years ended December 31, 2021, 2020 and 2019, respectively,
were outstanding but were excluded from the computation of diluted EPS because their effect would be anti-dilutive under
the treasury stock method or because the shares were subject to performance conditions that had not been met.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 71
NOTE 16 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Accumulated other comprehensive income (loss) on the 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 income (loss) attributable to the Company:
(in thousands)
Balance at January 1, 2019 . . . . . . . . . . . . . $
Other comprehensive income before
reclassifications . . . . . . . . . . . . . . . . .
Amounts reclassified from accumulated
other comprehensive loss (1)
Net other comprehensive income (loss)
. . . . . . . .
during the year . . . . . . . . . . . . . . . . . . . .
Purchase of non-controlling interest . . . . . . .
Balance at December 31, 2019 . . . . . . . . . .
Other comprehensive income (loss)
before reclassifications . . . . . . . . . . . .
Amounts reclassified from accumulated
other comprehensive loss (1)
Net other comprehensive income (loss)
. . . . . . . .
during the year . . . . . . . . . . . . . . . . . . . .
Balance at December 31, 2020 . . . . . . . . . .
Other comprehensive income (loss)
before reclassifications . . . . . . . . . . . .
Amounts reclassified from accumulated
other comprehensive income (1) . . . . .
Net other comprehensive income (loss)
Unrealized gains
(losses) on
available-for-
sale securities
Unrealized
holding
gains (losses) on
derivative
transactions
Foreign
currency
translation
adjustments
Total
(60) $
11,964 $
(15,967) $
(4,063)
56
—
56
—
(4)
4
—
4
—
—
—
6,669
2,064
8,789
(9,052)
—
(9,052)
(2,383)
(99)
9,482
2,064
—
(263)
(99)
(13,903)
(4,425)
(7,218)
24,078
16,864
(11,633)
—
(11,633)
(18,851)
(9,369)
24,078
10,175
5,231
806
16,113
(24,465)
(8,352)
3,170
—
3,170
during the year . . . . . . . . . . . . . . . . . . . .
Balance at December 31, 2021 . . . . . . . . . . $
(4,376)
(1) Amounts reclassified are recorded in Net sales, Cost of sales, or Other operating income (expense), net on the Consolidated Statements of Operations.
(14,290) $
(24,465)
9,914 $
(5,182)
19,283
— $
—
Refer to Note 18 for further information regarding reclassifications.
NOTE 17 — SEGMENT INFORMATION
The Company has four 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 services, finance, human resources and legal, as
well as executive compensation, unallocated benefit program expense, trademark impairment charges, and other
miscellaneous costs.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 72
The following table presents financial information for the Company's reportable segments:
(in thousands)
Net sales to unrelated entities:
Year Ended December 31,
2021
2020
2019
U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
2,060,300 $
1,603,783 $
1,943,007
LAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
465,499
382,060
218,543
424,489
298,907
174,375
529,282
367,072
203,117
$
3,126,402 $
2,501,554 $
3,042,478
456,656
80,138
45,419
39,576
621,789
(226,818)
8,302
2,156
405,429
23,388
5,956
4,036
3,009
23,367
59,756
Segment operating income:
U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
536,475 $
250,485 $
LAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total segment operating income . . . . . . . . . . . . . . . . . . . . . . . . . .
Unallocated corporate expenses . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other non-operating income (expense), net . . . . . . . . . . . . . . . . . .
42,025
65,496
52,731
696,727
(246,223)
1,380
(373)
35,875
31,235
37,620
355,215
(218,166)
435
2,039
Income before income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
451,511 $
139,523 $
Depreciation and amortization expense:
U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
21,098 $
25,852 $
LAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unallocated corporate expense . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,733
3,423
2,586
23,082
5,756
3,739
2,825
25,244
$
55,922 $
63,416 $
Accounts receivable, net:
U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
265,731 $
LAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
85,696
79,942
56,434
$
487,803 $
Inventories, net:
U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
455,960 $
LAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77,620
65,263
46,536
$
645,379 $
Property, plant and equipment, net: . . . . . . . . . . . . . . . . . . . . . . . . . . .
U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
232,610 $
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
All other countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24,898
33,580
$
291,088 $
244,236
83,671
66,780
58,258
452,945
362,061
94,448
60,124
39,897
556,530
245,690
25,992
38,110
309,792
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 73
NOTE 18 — 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 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
now included in the fair value of the cash flow hedge on a prospective basis. These costs or benefits will be included in
Accumulated other comprehensive 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.
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 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)
Derivative instruments designated as cash flow hedges:
December 31,
2021
2020
Currency forward contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
485,083 $
417,707
Derivative instruments not designated as hedges:
Currency forward contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
267,982
326,820
At December 31, 2021, $4.2 million of deferred net loss on both outstanding and matured derivatives recorded in
Accumulated other comprehensive income (loss) are expected to be reclassified to Net income during the next twelve
months as a result of underlying hedged transactions also being recorded in Net sales or Cost of sales in the Consolidated
Statements of Operations. When outstanding derivative contracts mature, actual amounts ultimately reclassified to Net
sales or Cost of sales in the Consolidated Statements of Comprehensive Income are dependent on United States dollar
exchange rates in effect against the euro, pound sterling, renminbi, Canadian dollar, and yen as well as the euro exchange
rate in effect against the pound sterling.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 74
At December 31, 2021, the Company's derivative contracts had a remaining maturity of less than three 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 $4.1 million at December 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 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:
Balance Sheet Classification
2021
2020
December 31,
(in thousands)
Derivative instruments designated as
cash flow hedges:
Derivative instruments in asset
positions:
Currency forward contracts . . . Prepaid expenses and other current assets $
Currency forward contracts . . .
Other non-current assets
7,927 $
10,142
Derivative instruments in liability
positions:
Currency forward contracts . . .
Currency forward contracts . . .
Derivative instruments not designated as
cash flow hedges:
Derivative instruments in asset
positions:
Accrued liabilities
Other long-term liabilities
2,545
318
947
1,126
7,573
6,590
Currency forward contracts . . . Prepaid expenses and other current assets
1,470
1,650
Derivative instruments in liability
positions:
Currency forward contracts . . .
Accrued liabilities
1,027
2,268
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 75
The following table presents the statement of operations effect and classification of derivative instruments:
(in thousands)
Currency Forward Contracts:
Derivative instruments designated as cash flow
hedges:
Gain (loss) recognized in other comprehensive
income (loss), net of tax . . . . . . . . . . . . . . .
Gain (loss) reclassified from accumulated other
comprehensive income (loss) to income for
the effective portion . . . . . . . . . . . . . . . . . .
Gain (loss) reclassified from accumulated other
comprehensive income (loss) to income for
the effective portion . . . . . . . . . . . . . . . . . .
Gain reclassified from accumulated other
Statement Of
Operations
Classification
Year Ended December 31,
2021
2020
2019
—
$
16,113 $
(7,218) $
6,669
Net sales
(448)
191
338
Cost of sales
(4,072)
14,495
9,558
comprehensive income (loss) to income as a
result of cash flow hedge discontinuance . . .
Other non-operating
income (expense), net
451
817
—
Loss recognized in income for amount
excluded from effectiveness testing and for
the ineffective portion . . . . . . . . . . . . . . . . .
Gain recognized in income for amount
excluded from effectiveness testing and for
the ineffective portion . . . . . . . . . . . . . . . . .
Derivative instruments not designated as cash flow
hedges:
Net sales
Cost of sales
—
—
—
—
(43)
2,380
Gain (loss) recognized in income . . . . . . . . . .
Other non-operating
income (expense), net
(608)
(2,865)
411
NOTE 19 — 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.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 76
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 are as follows:
(in thousands)
Assets:
Cash equivalents:
Level 1
Level 2
Level 3
Total
Money market funds . . . . . . . . . . . . . . . $
2,677 $
— $
— $
2,677
Available-for-sale short-term investments:(1)
U.S. Government treasury bills . . . . . . .
Other short-term investments:
Money market funds . . . . . . . . . . . . . . .
Mutual fund shares . . . . . . . . . . . . . . .
Other current assets:
Derivative financial instruments . . . . . . .
Non-current assets: . . . . . . . . . . . . . . . . . .
Money market funds . . . . . . . . . . . . . .
Mutual fund shares . . . . . . . . . . . . . . .
Derivative financial instruments . . . . . . .
Total assets measured at fair value . . . . . . . . $
Liabilities:
Accrued liabilities: . . . . . . . . . . . . . . . . . . .
—
130,168
73
904
—
2,219
19,606
—
—
—
9,397
—
—
10,142
—
—
—
—
—
—
—
130,168
73
904
9,397
2,219
19,606
10,142
25,479 $
149,707 $
— $
175,186
Derivative financial instruments . . . . . . . $
— $
3,572 $
— $
3,572
Other long-term liabilities . . . . . . . . . . . . . .
Derivative financial instruments . . . . . . .
—
Total liabilities measured at fair value . . . . . . . $
(1) Available-for-sale short-term investments have remaining maturities of less than one year.
— $
318
3,890 $
—
— $
318
3,890
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 77
Assets and liabilities measured at fair value on a recurring basis at December 31, 2020 are as follows:
Money market funds . . . . . . . . . . . . . .
Mutual fund shares . . . . . . . . . . . . . . .
105
1,119
—
—
(in thousands)
Assets:
Cash equivalents:
Money market funds . . . . . . . . . . . . . . $
United States government treasury bills
Short-term investments:
Other current assets:
Derivative financial instruments . . . . . .
Non-current assets: . . . . . . . . . . . . . . .
Money market funds . . . . . . . . . . . . . .
Mutual fund shares . . . . . . . . . . . . . . .
Derivative financial instruments . . . . . . . . . . .
Total assets measured at fair value . . . . . . . . $
Liabilities:
Accrued liabilities:
Level 1
Level 2
Level 3
Total
119,378 $
— $
— $
—
234,982
—
—
—
—
—
—
—
119,378
234,982
105
1,119
2,597
4,059
14,657
1,126
—
2,597
4,059
14,657
—
—
—
1,126
139,318 $
238,705 $
— $
378,023
Derivative financial instruments . . . . . . $
— $
9,841 $
— $
9,841
Other long-term liabilities:
Derivative financial instruments . . . . . .
Total liabilities measured at fair value . . . . . . . $
—
— $
6,590
16,431 $
—
— $
6,590
16,431
NON-RECURRING FAIR VALUE MEASUREMENTS
The Company measured the fair value of certain trademark and trade name intangible assets and certain retail store long-
lived assets consisting of property, plant and equipment, and lease ROU assets as part of impairment testing for the year
ended December 31, 2021. The inputs used to measure the fair value of these assets are primarily unobservable inputs
and, as such, considered Level 3 fair value measurements. See Notes 5, 6 and 9 for discussion of impairment charges.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 78
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
We have evaluated, under the supervision and with the participation of management, including our Chief Executive Officer
and the Chief Financial Officer, the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(b)
under the Securities Exchange Act of 1934, as amended (the "Exchange Act") as of the end of the period covered by this
report. These disclosure controls and procedures require information to be disclosed in our Exchange Act reports to 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 of the end of the period covered by this Annual Report on Form 10-K.
MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as
defined in the Exchange Act Rule 13a-15(f). All internal control systems, no matter how well designed, have inherent
limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect
to financial statement preparation and presentation.
Under the supervision and with the participation of management, we have assessed the effectiveness of our internal control
over financial reporting as of December 31, 2021. In making this assessment, we used the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway Commission in Internal Control - Integrated Framework
(2013). Based on our assessment, we, including our Chief Executive Officer and Chief Financial Officer, have concluded our
internal control over financial reporting is effective as of December 31, 2021.
The effectiveness of our internal control over financial reporting as of December 31, 2021 has been audited by Deloitte &
Touche LLP, an independent registered public accounting firm, as stated in its report, which is included in Item 8 in this
annual report.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
There have not been any changes in our internal control over financial reporting that occurred during the quarter ended
December 31, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over
financial reporting.
ITEM 9B. OTHER INFORMATION
None.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 79
PART III
ITEM 10. DIRECTORS, EXECUTIVES OFFICERS AND CORPORATE
GOVERNANCE
The sections of our 2022 Proxy Statement entitled "PROPOSAL 1: ELECTION OF DIRECTORS," "CORPORATE
GOVERNANCE - Oversight Documents - Code of Business Conduct and Ethics," and "CORPORATE GOVERNANCE -
Board Structure - Committees" are incorporated herein by reference.
Information regarding our executive officers is included in Part I under "Information About Our Executive Officers".
ITEM 11. EXECUTIVE COMPENSATION
The sections of our 2022 Proxy Statement entitled "EXECUTIVE COMPENSATION," "DIRECTOR COMPENSATION,"
"CORPORATE GOVERNANCE - Board Structure - Committees - Compensation Committee - Compensation Committee
Interlocks and Insider Participation" and "COMPENSATION COMMITTEE REPORT" are incorporated herein by reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The sections of our 2022 Proxy Statement entitled "SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT" and "EQUITY COMPENSATION PLAN INFORMATION" are incorporated herein by reference.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
DIRECTOR INDEPENDENCE
The sections of our 2022 Proxy Statement entitled "CORPORATE GOVERNANCE - Certain Relationships and Related
Person Transaction" and "CORPORATE GOVERNANCE - Board Structure - Independence" are incorporated herein by
reference.
ITEM 14 PRINCIPAL ACCOUNTANT FEES AND SERVICES
The sections of our 2022 Proxy Statement entitled "PROPOSAL 2: RATIFICATION OF SELECTION OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM - Principal Accountant Fees and Services" and "PROPOSAL 2:
RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - Pre-Approval Policy"
are incorporated herein by reference.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 80
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
PART IV
(a)(1) and (a)(2) Financial Statements | The Financial Statements of Columbia and Supplementary Data filed as part of
this Annual Report on Form 10-K are on pages 39 to 68 of this Annual Report. The financial statement schedule required to
be filed by Item 8 of this annual report and paragraph (b) of this Item 15 is included below.
(a)(3) | See Exhibit Index below for a description of the documents that are filed as Exhibits to this Annual Report on Form
10-K or incorporated herein by reference.
Schedule II
Valuation and Qualifying Accounts
Balance at
Beginning
of Period
Charged to
Costs and
Expenses
Deductions(1)
Other(2)
Balance at
End of
Period
(in thousands)
Allowance for doubtful accounts:
Year Ended December 31, 2021 $
21,810 $
(10,758) $
Year Ended December 31, 2020 $
8,925 $
19,156 $
Year Ended December 31, 2019 $
11,051 $
(108) $
(210) $
(7,991) $
(1,235) $
(1,949) $
1,720 $
(783) $
8,893
21,810
8,925
(1) Charges to the accounts included in this column are for the purposes for which the reserves were created.
(2) Amounts included in this column primarily relate to foreign currency translation.
EXHIBIT INDEX
In reviewing the agreements included as exhibits to this Annual Report on Form 10-K, please remember they are included
to provide you with information regarding their terms and are not intended to provide any other factual or disclosure
information about Columbia or the other parties to the agreements. The agreements may contain representations and
warranties by each of the parties to the applicable agreement.
These representations and warranties have been made solely for the benefit of the other party or parties to the applicable
agreement and:
•
•
•
•
should not in all instances be treated as categorical statements of fact, but rather as a means of allocating the risk
to one of the parties if those statements prove to be inaccurate;
may have been qualified by disclosures that were made to the other party or parties in connection with the
negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;
may apply standards of materiality in a manner that is different from what may be viewed as material to you or
other investors; and
were made only as of the date of the applicable agreement or other date or dates that may be specified in the
agreement and are subject to more recent developments.
Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were
made or at any other time. Additional information about Columbia may be found elsewhere in this Annual Report on Form
10-K and Columbia's other public filings, which are available without charge through the SEC's website at http://
www.sec.gov.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 81
Exhibit No. Exhibit Name
3.1
3.1(a)
3.1(b)
3.2
4.1
4.2
+ 10.1
† 10.2
10.3
+ 10.4
+ 10.5(a)
+ 10.5(b)
+ 10.5(c)
+ 10.5(d)
+ 10.6
+ 10.6(a)
+ 10.6(b)
+ 10.7
+ 10.7(a)
+ 10.7(b)
+ 10.8
+ 10.9
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).
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).
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).
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).
See Article II of Exhibit 3.1, as amended, and Article I of Exhibit 3.2.
Description of the Registrant's Securities Registered under Section 12 of the Exchange Act of Description of the
Registrant's Securities Registered under Section 12 of the Exchange Act of 1934.
Columbia Sportswear Company 1997 Stock Incentive Plan, as amended (incorporated by reference to exhibit 10.2 to the
Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017) (File No. 000-23939).
Subscription and Shareholders' Agreement, dated August 6, 2012, by and among CSMM Hong Kong Limited, SCCH
Limited, Columbia Sportswear Company and Swire Resources Limited (incorporated by reference to exhibit 10.1 of the
Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2012) (File No. 000-23939).
Share purchase agreement, dated April 28, 2014, by and among Columbia Sportswear Company, prAna Living, LLC, the
Shareholders of prAna Living, LLC and Steelpoint Capital Advisors, LLC as the shareholder representative (incorporated
by reference to exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30,
2014) (File No. 000-23939).
Employment Offer Letter from Columbia Sportswear Company to Franco Fogliato (incorporated by reference to exhibit
10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017) (File No.
000-23939).
Form of Nonstatutory Stock Option Agreement for stock options granted on or after January 23, 2009 (incorporated by
reference to exhibit 10.2(e) to the Company's Annual Report on Form 10-K for the year ended December 31, 2008) (File
No. 000-23939).
Form of Nonstatutory Stock Option Agreement for stock options granted on or after June 7, 2012 (incorporated by
reference to exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012)
(File No. 000-23939).
Form of Nonstatutory Stock Option Agreement for stock options granted on or after July 20, 2017 (incorporated by
reference to exhibit 10.2(m) to the Company's Annual Report on Form 10-K for the year ended December 31, 2017) (File
No. 000-23939).
Form of Nonstatutory Stock Option Agreement for stock options granted on or after January 24, 2019 (incorporated by
reference to exhibit 10.5(e) to the Company's annual Report on Form 10-K for the year ended December 31, 2018) (File
No. 000-23939).
Form of Restricted Stock Unit Award Agreement for restricted stock units granted on or after June 7, 2012 (incorporated
by reference to exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30,
2012) (File No. 000-23939).
Form of Restricted Stock Unit Award Agreement for restricted stock units granted on or after July 20, 2017 (incorporated
by reference to exhibit 10.2(l) to the Company's Annual Report on Form 10-K for the year ended December 31, 2017) (File
No. 000-23939).
Form of Restricted Stock Unit Award Agreement for restricted stock units granted on or after January 24, 2019
(incorporated by reference to exhibit 10.6(c) to the Company's Annual Report on Form 10-K for the year ended December
31, 2018) (File No. 000-23939).
Columbia Sportswear Company 401(k) Excess Plan (incorporated by reference to exhibit 10.2 to the Company's Quarterly
Report on Form 10-Q for the quarterly period ended March 31, 2009) (File No. 000-23939).
Columbia Sportswear Company 401(k) Excess Plan, as amended (incorporated by reference to exhibit 10.7(a) to the
Company's Annual Report on Form 10-K for the year ended December 31, 2018) (File No. 000-23939).
Columbia Sportswear Company 401(k) Excess Plan, as amended (incorporated by reference to exhibit 10.1 to the
Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) (File No. 000-23939).
Columbia Sportswear Company 401(k) Excess Retirement Plan
Form of Performance-based Restricted Stock Unit Award Agreement for performance-based restricted stock units granted
on or after December 17, 2013 (incorporated by reference to exhibit 10.2(l) to the Company's Annual Report on Form 10-K
for the year ended December 31, 2013) (File No. 000-23939).
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 82
Exhibit No. Exhibit Name
+ 10.9(a)
+ 10.10
Form of Performance-based Restricted Stock Unit Award Agreement for performance-based restricted stock units granted
on or after January 24, 2019 (incorporated by reference to exhibit 10.8(a) to the Company's Annual Report on Form 10-K
for the year ended December 31, 2018) (File No. 000-23939).
Form of Long-Term Incentive Cash Award Agreement for cash awards granted under the Company's 1997 Stock Incentive
Plan, on or after December 17, 2013 (incorporated by reference to exhibit 10.2(m) to the Company's Annual Report on
Form 10-K for the year ended December 31, 2013) (File No. 000-23939).
+ 10.10(a) Form of Long-Term Incentive Cash Award Agreement for cash awards granted under the Company's 1997 Stock Incentive
Plan on or after January 24, 2019 (incorporated by reference to exhibit 10.2 to the Company's Quarterly Report on Form
10-Q for the quarterly period ended June 30, 2019) (File 000-23939).
+ 10.11
+ 10.12
+ 10.13
+ 10.14
10.15
10.16
10.17
10.18
10.19
Long Term Cash Incentive Plan of Columbia Sportswear Company, effective January 1, 2019 (incorporated by reference
to exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019) (File No.
000-23939).
Form of Long-Term Incentive Cash Award Agreement for cash awards granted under the Company's Long-Term Incentive
Cash Plan granted on or after January 1, 2019 (incorporated by reference to exhibit 10.2 to the Company's Quarterly
Report on Form 10-Q for the quarterly period ended March 31, 2019) (File No. 000-23939).
Executive Incentive Compensation Plan, as amended (incorporated by reference to exhibit 10.3 to the Company's
Quarterly report on Form 10-Q for the quarterly period ended March 31, 2019) (File No. 000-23939).
Columbia Sportswear Company Second Amendment Change in Control Severance Plan (incorporated by reference to
exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017) (File No.
000-23939).
Amended and Restated Credit Agreement dated April 17, 2019 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 the Company's Form 8-K filed on April 22, 2019) (File No. 000-23939).
First Amendment to Amended and Restated Credit Agreement dated March 26, 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 April 1, 2020)
(File No. 000-23939).
Second Amended and Restated Credit Agreement dated April 15, 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 April 16, 2020) (File No.
000-23939).
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 14, 2020) (File No. 000-23939).
Credit Agreement dated December 30, 2020, among Columbia Sportswear Company, JPMorgan Chase Bank, National
Association, as the administrative agent for the lenders and as a lender, and the other lenders party thereto (incorporated
by reference to exhibit 10.1 to the Company's Form 8-K filed on January 4, 2021) (File No. 000-23939).
* 10.20
Form of Indemnity Agreement for Directors (incorporated by reference to exhibit 10.17 to the Company's Registration
Statement Filed on Form S-1 filed on December 24, 1997) (File No. 333-43199).
+ 10.20(a) Form of Indemnity Agreement for Directors and Executive Officers (incorporated by reference to exhibit 10.23 to the
Company's Annual Report on Form 10-K for the year ended December 31, 2004) (File No. 000-23939).
+ 10.21
+ 10.22
10.23
10.24
10.25
1999 Employee Stock Purchase Plan, as amended (incorporated by reference to exhibit 10.21 to the Company's Annual
Report on Form 10-K for the year ended December 31, 2001) (File No. 000-23939).
Tax Differential on Supplemental Wages Agreement, dated November 1, 2019, by and between Columbia Sportswear
Company and Franco Fogliato (incorporated by reference to exhibit 10.1 to the Company's Quarterly Report on Form 10-Q
for the quarterly period ended September 30, 2019) (File No. 000-23939).
Columbia Sportswear 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 on June 4, 2020) (File No. 333-238935).
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).
Form of Restricted Stock Units Award Agreement for 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).
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 83
Exhibit No. Exhibit Name
10.26
10.27
21.1
23.1
31.1
31.2
32.1
32.2
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).
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).
Subsidiaries of the Company.
Consent of Deloitte & Touche LLP.
Rule 13a-14(a) Certification of Timothy P. Boyle, Chairman, President and Chief Executive Officer.
Rule 13a-14(a) Certification of Jim A. Swanson, Executive Vice President and Chief Financial Officer.
Section 1350 Certification of Timothy P. Boyle, Chairman, President and Chief Executive Officer.
Section 1350 Certification of Jim A. Swanson, Executive Vice President and Chief Financial Officer.
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.INS
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
† Confidential treatment has been granted for certain portions omitted from this exhibit pursuant to Rule 24b-2 under the Securities Exchange Act of 1934,
as amended. Confidential portions of this exhibit have been separately filed with the Securities and Exchange Commission.
* Incorporated by reference to the Company's Registration Statement on Form S-1 (Reg. No. 333-43199).
ITEM 16. FORM 10-K SUMMARY
None.
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 84
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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
Date:
February 24, 2022
By:
/s/ JIM A. SWANSON
Jim A. Swanson
Executive Vice President and Chief Financial Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and on the date indicated.
SIGNATURE
TITLE
/s/
TIMOTHY P. BOYLE
Timothy P. Boyle
Chairman, President and Chief Executive Officer
(Principal Executive Officer)
/s/
JIM A. SWANSON
Jim A. Swanson
/s/
STEPHEN E. BABSON
Stephen E. Babson
/s/
ANDY D. BRYANT
Andy D. Bryant
/s/
JOHN W. CULVER
John W. Culver
/s/ WALTER T. KLENZ
Walter T. Klenz
/s/
KEVIN MANSELL
Kevin Mansell
/s/ RONALD E. NELSON
Ronald E. Nelson
/s/
SABRINA L. SIMMONS
Executive Vice President and Chief Financial Officer
(Duly Authorized Officer and Principal Financial and Accounting Officer)
Director
Director
Director
Director
Director
Director
Sabrina L. Simmons
Director
/s/ MALIA H. WASSON
Malia H. Wasson
Date: February 24, 2022
Director
COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 85
WE CONNECT ACTIVE PEOPLE WITH THEIR PASSIONS.