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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934
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Oregon
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93-0498284
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(State or other jurisdiction of
incorporation or organization)
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(IRS Employer
Identification Number)
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14375 Northwest Science Park Drive
Portland, Oregon
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97229
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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x
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Accelerated filer
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¨
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Non-accelerated filer
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¨
(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Emerging growth company
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¨
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PAGE NO.
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June 30,
2018 |
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December 31,
2017 |
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June 30,
2017 |
||||||
ASSETS
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||||||
Current Assets:
|
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||||||
Cash and cash equivalents
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$
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510,656
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$
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673,166
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$
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620,639
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Short-term investments
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264,014
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94,983
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1,591
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|||
Accounts receivable, net of allowance of $6,889, $9,043, and $8,666, respectively
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238,675
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364,862
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181,119
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Inventories
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570,473
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457,927
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559,544
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Prepaid expenses and other current assets
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76,399
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58,559
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42,053
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Total current assets
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1,660,217
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1,649,497
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1,404,946
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Property, plant and equipment, at cost, net of accumulated depreciation of $472,447, $455,811, and $435,625, respectively
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280,726
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281,394
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286,006
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Intangible assets, net (Note 5)
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128,065
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129,555
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131,045
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Goodwill
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68,594
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68,594
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68,594
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Deferred income taxes
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70,351
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56,804
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94,514
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Other non-current assets
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38,997
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27,058
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26,095
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Total assets
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$
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2,246,950
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$
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2,212,902
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$
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2,011,200
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LIABILITIES AND EQUITY
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||||||
Current Liabilities:
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||||||
Accounts payable
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$
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290,812
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$
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252,301
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$
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264,881
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Accrued liabilities (Note 6)
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191,511
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182,228
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114,807
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Income taxes payable
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4,000
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19,107
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3,245
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Total current liabilities
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486,323
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453,636
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382,933
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Other long-term liabilities
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45,412
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48,735
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44,809
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Income taxes payable
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60,827
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58,104
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11,102
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Deferred income taxes
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13
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168
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156
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Total liabilities
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592,575
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560,643
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439,000
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Commitments and contingencies (Note 12)
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Columbia Sportswear Company Shareholders' Equity:
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||||||
Preferred stock; 10,000 shares authorized; none issued and outstanding
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—
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—
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—
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Common stock (no par value); 250,000 shares authorized; 69,988, 69,995, and 69,686, issued and outstanding, respectively (Note 9)
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23,162
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45,829
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31,045
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Retained earnings
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1,623,612
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1,585,009
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1,529,061
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Accumulated other comprehensive loss (Note 8)
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(6,374
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)
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(8,887
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)
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(13,296
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)
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Total Columbia Sportswear Company shareholders' equity
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1,640,400
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1,621,951
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1,546,810
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Non-controlling interest (Note 4)
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13,975
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30,308
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25,390
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Total equity
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1,654,375
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1,652,259
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1,572,200
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Total liabilities and equity
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$
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2,246,950
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$
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2,212,902
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$
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2,011,200
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Three Months Ended June 30,
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Six Months Ended June 30,
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||||||||||||
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2018
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2017
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2018
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2017
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Net sales
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$
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481,619
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$
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398,904
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$
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1,088,927
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$
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942,697
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Cost of sales
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252,998
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218,042
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560,868
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503,368
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Gross profit
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228,621
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180,862
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528,059
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439,329
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Selling, general and administrative expenses
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222,192
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200,598
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465,560
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413,413
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Net licensing income
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3,320
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2,451
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6,571
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4,804
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Income (loss) from operations
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9,749
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(17,285
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)
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69,070
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30,720
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Interest income, net
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2,928
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1,250
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5,224
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2,205
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Interest expense on note payable to related party (Note 14)
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—
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(180
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)
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—
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(429
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)
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Other non-operating (expense) income, net
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(96
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)
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360
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(364
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)
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307
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Income (loss) before income tax
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12,581
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(15,855
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)
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73,930
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32,803
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Income tax (expense) benefit
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(2,086
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)
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4,539
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(14,706
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)
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(5,234
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)
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Net income (loss)
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10,495
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(11,316
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)
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59,224
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27,569
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Net income attributable to non-controlling interest
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758
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219
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4,380
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3,098
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Net income (loss) attributable to Columbia Sportswear Company
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$
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9,737
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$
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(11,535
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)
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$
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54,844
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$
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24,471
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Earnings (loss) per share attributable to Columbia Sportswear Company (Note 9):
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||||||||
Basic
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$
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0.14
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$
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(0.17
|
)
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$
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0.78
|
|
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$
|
0.35
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Diluted
|
$
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0.14
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$
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(0.17
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)
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$
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0.77
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$
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0.35
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Cash dividends per share
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$
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0.22
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$
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0.18
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$
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0.44
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$
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0.36
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Weighted average shares outstanding (Note 9):
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||||||||
Basic
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70,021
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69,672
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70,050
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|
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69,639
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Diluted
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70,748
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69,672
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70,824
|
|
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70,367
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Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
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2018
|
|
2017
|
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2018
|
|
2017
|
||||||||
Net income (loss)
|
10,495
|
|
|
$
|
(11,316
|
)
|
|
59,224
|
|
|
27,569
|
|
|||
Other comprehensive income:
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains (losses) on available-for-sale securities (net of tax effects of $0, $0, $0 and $0, respectively)
|
—
|
|
|
(4
|
)
|
|
4
|
|
|
—
|
|
||||
Unrealized gains (losses) on derivative transactions (net of tax effects of ($6,540), $3,361, ($4,974), and $4,241, respectively)
|
20,553
|
|
|
(6,157
|
)
|
|
15,646
|
|
|
(7,762
|
)
|
||||
Foreign currency translation adjustments (net of tax effects of $275, ($93), $1,819, and ($2), respectively)
|
(18,262
|
)
|
|
7,182
|
|
|
(12,003
|
)
|
|
18,684
|
|
||||
Other comprehensive income
|
2,291
|
|
|
1,021
|
|
|
3,647
|
|
|
10,922
|
|
||||
Comprehensive income (loss)
|
12,786
|
|
|
(10,295
|
)
|
|
62,871
|
|
|
38,491
|
|
||||
Comprehensive income attributable to non-controlling interest
|
474
|
|
|
1,644
|
|
|
4,999
|
|
|
4,699
|
|
||||
Comprehensive income (loss) attributable to Columbia Sportswear Company
|
$
|
12,312
|
|
|
$
|
(11,939
|
)
|
|
$
|
57,872
|
|
|
$
|
33,792
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
59,224
|
|
|
$
|
27,569
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
29,067
|
|
|
29,932
|
|
||
Loss on disposal and impairment of property, plant, and equipment
|
578
|
|
|
441
|
|
||
Deferred income taxes
|
2,041
|
|
|
3,378
|
|
||
Stock-based compensation
|
6,599
|
|
|
5,719
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
188,897
|
|
|
156,755
|
|
||
Inventories
|
(140,897
|
)
|
|
(61,809
|
)
|
||
Prepaid expenses and other current assets
|
(6,411
|
)
|
|
(3,073
|
)
|
||
Other assets
|
(11,867
|
)
|
|
2,037
|
|
||
Accounts payable
|
37,968
|
|
|
39,773
|
|
||
Accrued liabilities
|
(49,781
|
)
|
|
(41,523
|
)
|
||
Income taxes payable
|
(12,835
|
)
|
|
(4,133
|
)
|
||
Other liabilities
|
(3,258
|
)
|
|
1,981
|
|
||
Net cash provided by operating activities
|
99,325
|
|
|
157,047
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of short-term investments
|
(257,979
|
)
|
|
(33,813
|
)
|
||
Sales of short-term investments
|
88,794
|
|
|
32,878
|
|
||
Capital expenditures
|
(29,618
|
)
|
|
(24,323
|
)
|
||
Proceeds from sale of property, plant, and equipment
|
19
|
|
|
202
|
|
||
Net cash used in investing activities
|
(198,784
|
)
|
|
(25,056
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from credit facilities
|
—
|
|
|
2,774
|
|
||
Repayments on credit facilities
|
—
|
|
|
(2,774
|
)
|
||
Proceeds from issuance of common stock under employee stock plans
|
14,971
|
|
|
10,606
|
|
||
Tax payments related to restricted stock unit issuances
|
(4,131
|
)
|
|
(3,539
|
)
|
||
Repurchase of common stock
|
(40,106
|
)
|
|
(35,542
|
)
|
||
Cash dividends paid
|
(30,856
|
)
|
|
(25,046
|
)
|
||
Payment of related party note payable
|
—
|
|
|
(14,236
|
)
|
||
Net cash used in financing activities
|
(60,122
|
)
|
|
(67,757
|
)
|
||
Net effect of exchange rate changes on cash
|
(2,929
|
)
|
|
5,016
|
|
||
Net increase (decrease) in cash and cash equivalents
|
(162,510
|
)
|
|
69,250
|
|
||
Cash and cash equivalents, beginning of period
|
673,166
|
|
|
551,389
|
|
||
Cash and cash equivalents, end of period
|
$
|
510,656
|
|
|
$
|
620,639
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Cash paid during the period for income taxes
|
$
|
31,346
|
|
|
$
|
18,133
|
|
Cash paid during the period for interest on note payable to related party
|
—
|
|
|
501
|
|
||
Supplemental disclosures of non-cash investing and financing activities
:
|
|
|
|
||||
Capital expenditures incurred but not yet paid
|
$
|
4,009
|
|
|
$
|
9,191
|
|
Dividend to non-controlling interest declared but not yet paid (Note 14)
|
$
|
21,332
|
|
|
$
|
—
|
|
|
|
January 1, 2018
|
||||||||||||||||||
|
|
December 31, 2017
|
|
Adjustments due to
ASC 606
|
|
Adjustments due to
ASU 2016-16
|
|
Adjustments due to
ASU 2017-12
|
|
January 1, 2018
|
||||||||||
Accounts receivable, net
|
|
$
|
364,862
|
|
|
$
|
64,519
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
429,381
|
|
Inventories
|
|
457,927
|
|
|
(24,037
|
)
|
|
—
|
|
|
—
|
|
|
433,890
|
|
|||||
Prepaid expenses and other current assets
|
|
58,559
|
|
|
24,037
|
|
|
(11,814
|
)
|
|
—
|
|
|
70,782
|
|
|||||
Total current assets
|
|
1,649,497
|
|
|
64,519
|
|
|
(11,814
|
)
|
|
—
|
|
|
1,702,202
|
|
|||||
Deferred income taxes
|
|
56,804
|
|
|
(519
|
)
|
|
23,484
|
|
|
—
|
|
|
79,769
|
|
|||||
Total assets
|
|
2,212,902
|
|
|
64,000
|
|
|
11,670
|
|
|
—
|
|
|
2,288,572
|
|
|||||
Accrued liabilities
|
|
182,228
|
|
|
61,340
|
|
|
—
|
|
|
—
|
|
|
243,568
|
|
|||||
Income taxes payable
|
|
19,107
|
|
|
230
|
|
|
—
|
|
|
—
|
|
|
19,337
|
|
|||||
Total current liabilities
|
|
453,636
|
|
|
61,570
|
|
|
—
|
|
|
—
|
|
|
515,206
|
|
|||||
Total liabilities
|
|
560,643
|
|
|
61,570
|
|
|
—
|
|
|
—
|
|
|
622,213
|
|
|||||
Retained earnings
|
|
1,585,009
|
|
|
2,430
|
|
|
11,670
|
|
|
515
|
|
|
1,599,624
|
|
|||||
Accumulated other comprehensive loss
|
|
(8,887
|
)
|
|
—
|
|
|
—
|
|
|
(515
|
)
|
|
(9,402
|
)
|
|||||
Total liabilities and equity
|
|
$
|
2,212,902
|
|
|
$
|
64,000
|
|
|
$
|
11,670
|
|
|
$
|
—
|
|
|
$
|
2,288,572
|
|
|
|
June 30, 2018
|
||||||||||
|
|
As Reported
|
|
Effect of Standard
|
|
Balances Without Adoption of ASC 606
|
||||||
Accounts receivable, net
|
|
$
|
238,675
|
|
|
$
|
37,466
|
|
|
$
|
201,209
|
|
Inventories
|
|
570,473
|
|
|
(11,068
|
)
|
|
581,541
|
|
|||
Prepaid expenses and other current assets
|
|
76,399
|
|
|
11,068
|
|
|
65,331
|
|
|||
Total current assets
|
|
1,660,217
|
|
|
37,466
|
|
|
1,622,751
|
|
|||
Total assets
|
|
2,246,950
|
|
|
37,466
|
|
|
2,209,484
|
|
|||
Accrued liabilities
|
|
191,511
|
|
|
37,466
|
|
|
154,045
|
|
|||
Total current liabilities
|
|
486,323
|
|
|
37,466
|
|
|
448,857
|
|
|||
Total liabilities
|
|
592,575
|
|
|
37,466
|
|
|
555,109
|
|
|||
Total liabilities and equity
|
|
$
|
2,246,950
|
|
|
$
|
37,466
|
|
|
$
|
2,209,484
|
|
|
|
Three Months Ended
June 30, 2018 |
|
Six Months Ended
June 30, 2018 |
||||||||||||||||||||
|
|
As Reported
|
|
Effect of Standard
|
|
Balances Without Adoption of ASC 606
|
|
As Reported
|
|
Effect of Standard
|
|
Balances Without Adoption of ASC 606
|
||||||||||||
Net sales
|
|
$
|
481,619
|
|
|
$
|
7,487
|
|
|
$
|
474,132
|
|
|
$
|
1,088,927
|
|
|
$
|
15,744
|
|
|
$
|
1,073,183
|
|
Gross profit
|
|
228,621
|
|
|
7,487
|
|
|
221,134
|
|
|
528,059
|
|
|
15,744
|
|
|
512,315
|
|
||||||
Selling, general and administrative expenses
|
|
$
|
222,192
|
|
|
$
|
7,487
|
|
|
$
|
214,705
|
|
|
$
|
465,560
|
|
|
$
|
15,744
|
|
|
$
|
449,816
|
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
|
|
United States
|
|
LAAP
|
|
EMEA
|
|
Canada
|
|
Total
|
||||||||||
Product category revenues
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Apparel, Accessories and Equipment
|
|
$
|
250,394
|
|
|
$
|
74,600
|
|
|
$
|
56,881
|
|
|
$
|
12,782
|
|
|
$
|
394,657
|
|
Footwear
|
|
29,776
|
|
|
26,284
|
|
|
28,105
|
|
|
2,797
|
|
|
86,962
|
|
|||||
Total
|
|
$
|
280,170
|
|
|
$
|
100,884
|
|
|
$
|
84,986
|
|
|
$
|
15,579
|
|
|
$
|
481,619
|
|
Sales channel revenues
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Wholesale
|
|
$
|
129,166
|
|
|
$
|
46,146
|
|
|
$
|
78,003
|
|
|
$
|
7,894
|
|
|
$
|
261,209
|
|
Direct-to-consumer
|
|
151,004
|
|
|
54,738
|
|
|
6,983
|
|
|
7,685
|
|
|
220,410
|
|
|||||
Total
|
|
$
|
280,170
|
|
|
$
|
100,884
|
|
|
$
|
84,986
|
|
|
$
|
15,579
|
|
|
$
|
481,619
|
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||
|
|
United States
|
|
LAAP
|
|
EMEA
|
|
Canada
|
|
Total
|
||||||||||
Product category revenues
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Apparel, Accessories and Equipment
|
|
$
|
216,091
|
|
|
$
|
58,419
|
|
|
$
|
43,864
|
|
|
$
|
11,318
|
|
|
$
|
329,692
|
|
Footwear
|
|
22,102
|
|
|
21,054
|
|
|
23,525
|
|
|
2,531
|
|
|
69,212
|
|
|||||
Total
|
|
$
|
238,193
|
|
|
$
|
79,473
|
|
|
$
|
67,389
|
|
|
$
|
13,849
|
|
|
$
|
398,904
|
|
Sales channel revenues
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Wholesale
|
|
$
|
108,183
|
|
|
$
|
33,550
|
|
|
$
|
62,131
|
|
|
$
|
7,696
|
|
|
$
|
211,560
|
|
Direct-to-consumer
|
|
130,010
|
|
|
45,923
|
|
|
5,258
|
|
|
6,153
|
|
|
187,344
|
|
|||||
Total
|
|
$
|
238,193
|
|
|
$
|
79,473
|
|
|
$
|
67,389
|
|
|
$
|
13,849
|
|
|
$
|
398,904
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
|
|
United States
|
|
LAAP
|
|
EMEA
|
|
Canada
|
|
Total
|
||||||||||
Product category revenues
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Apparel, Accessories and Equipment
|
|
$
|
563,720
|
|
|
$
|
170,980
|
|
|
$
|
104,356
|
|
|
$
|
45,560
|
|
|
$
|
884,616
|
|
Footwear
|
|
79,294
|
|
|
61,473
|
|
|
52,405
|
|
|
11,139
|
|
|
204,311
|
|
|||||
Total
|
|
$
|
643,014
|
|
|
$
|
232,453
|
|
|
$
|
156,761
|
|
|
$
|
56,699
|
|
|
$
|
1,088,927
|
|
Sales channel revenues
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Wholesale
|
|
$
|
316,006
|
|
|
$
|
114,333
|
|
|
$
|
135,584
|
|
|
$
|
39,225
|
|
|
$
|
605,148
|
|
Direct-to-consumer
|
|
327,008
|
|
|
118,120
|
|
|
21,177
|
|
|
17,474
|
|
|
483,779
|
|
|||||
Total
|
|
$
|
643,014
|
|
|
$
|
232,453
|
|
|
$
|
156,761
|
|
|
$
|
56,699
|
|
|
$
|
1,088,927
|
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||
|
|
United States
|
|
LAAP
|
|
EMEA
|
|
Canada
|
|
Total
|
||||||||||
Product category revenues
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Apparel, Accessories and Equipment
|
|
$
|
502,834
|
|
|
$
|
145,188
|
|
|
$
|
80,693
|
|
|
$
|
41,056
|
|
|
$
|
769,771
|
|
Footwear
|
|
68,543
|
|
|
52,629
|
|
|
42,030
|
|
|
9,724
|
|
|
172,926
|
|
|||||
Total
|
|
$
|
571,377
|
|
|
$
|
197,817
|
|
|
$
|
122,723
|
|
|
$
|
50,780
|
|
|
$
|
942,697
|
|
Sales channel revenues
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Wholesale
|
|
$
|
291,179
|
|
|
$
|
102,770
|
|
|
$
|
108,616
|
|
|
$
|
37,845
|
|
|
$
|
540,410
|
|
Direct-to-consumer
|
|
280,198
|
|
|
95,047
|
|
|
14,107
|
|
|
12,935
|
|
|
402,287
|
|
|||||
Total
|
|
$
|
571,377
|
|
|
$
|
197,817
|
|
|
$
|
122,723
|
|
|
$
|
50,780
|
|
|
$
|
942,697
|
|
|
|
Columbia Sportswear Company
|
|
Non-Controlling Interest
|
|
Total
|
||||||
Balance at December 31, 2017
|
|
$
|
1,621,951
|
|
|
$
|
30,308
|
|
|
$
|
1,652,259
|
|
Net income
|
|
54,844
|
|
|
4,380
|
|
|
59,224
|
|
|||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
||||||
Unrealized holding gains on available-for-sale securities
|
|
4
|
|
|
—
|
|
|
4
|
|
|||
Derivative holding gains
|
|
15,120
|
|
|
526
|
|
|
15,646
|
|
|||
Foreign currency translation adjustments
|
|
(12,096
|
)
|
|
93
|
|
|
(12,003
|
)
|
|||
Cash dividends ($0.44 per share)
|
|
(30,856
|
)
|
|
—
|
|
|
(30,856
|
)
|
|||
Dividends declared but not yet paid
|
|
—
|
|
|
(21,332
|
)
|
|
(21,332
|
)
|
|||
Issuance of common stock under employee stock plans, net of tax
|
|
10,840
|
|
|
—
|
|
|
10,840
|
|
|||
Adoption of new accounting pronouncements (Note 2)
|
|
14,100
|
|
|
—
|
|
|
14,100
|
|
|||
Stock-based compensation expense
|
|
6,599
|
|
|
—
|
|
|
6,599
|
|
|||
Repurchase of common stock
|
|
(40,106
|
)
|
|
—
|
|
|
(40,106
|
)
|
|||
Balance at June 30, 2018
|
|
$
|
1,640,400
|
|
|
$
|
13,975
|
|
|
$
|
1,654,375
|
|
|
|
Columbia Sportswear Company
|
|
Non-Controlling Interest
|
|
Total
|
||||||
Balance at December 31, 2016
|
|
$
|
1,560,820
|
|
|
$
|
20,691
|
|
|
$
|
1,581,511
|
|
Net income
|
|
24,471
|
|
|
3,098
|
|
|
27,569
|
|
|||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
||||||
Derivative holding losses
|
|
(7,567
|
)
|
|
(195
|
)
|
|
(7,762
|
)
|
|||
Foreign currency translation adjustments
|
|
16,888
|
|
|
1,796
|
|
|
18,684
|
|
|||
Cash dividends ($0.36 per share)
|
|
(25,046
|
)
|
|
—
|
|
|
(25,046
|
)
|
|||
Issuance of common stock under employee stock plans, net
|
|
7,067
|
|
|
—
|
|
|
7,067
|
|
|||
Stock-based compensation expense
|
|
5,719
|
|
|
—
|
|
|
5,719
|
|
|||
Repurchase of common stock
|
|
(35,542
|
)
|
|
—
|
|
|
(35,542
|
)
|
|||
Balance at June 30, 2017
|
|
$
|
1,546,810
|
|
|
$
|
25,390
|
|
|
$
|
1,572,200
|
|
|
June 30,
2018 |
|
December 31,
2017 |
|
June 30,
2017 |
||||||
Intangible assets subject to amortization:
|
|
|
|
|
|
||||||
Patents and purchased technology
|
$
|
14,198
|
|
|
$
|
14,198
|
|
|
$
|
14,198
|
|
Customer relationships
|
23,000
|
|
|
23,000
|
|
|
23,000
|
|
|||
Gross carrying amount
|
37,198
|
|
|
37,198
|
|
|
37,198
|
|
|||
Accumulated amortization:
|
|
|
|
|
|
||||||
Patents and purchased technology
|
(11,316
|
)
|
|
(10,651
|
)
|
|
(9,986
|
)
|
|||
Customer relationships
|
(13,238
|
)
|
|
(12,413
|
)
|
|
(11,588
|
)
|
|||
Total accumulated amortization
|
(24,554
|
)
|
|
(23,064
|
)
|
|
(21,574
|
)
|
|||
Net carrying amount
|
12,644
|
|
|
14,134
|
|
|
15,624
|
|
|||
Intangible assets not subject to amortization
|
115,421
|
|
|
115,421
|
|
|
115,421
|
|
|||
Intangible assets, net
|
$
|
128,065
|
|
|
$
|
129,555
|
|
|
$
|
131,045
|
|
2018
|
$
|
2,980
|
|
2019
|
2,980
|
|
|
2020
|
2,537
|
|
|
2021
|
1,650
|
|
|
2022
|
1,650
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Balance at beginning of period
|
$
|
12,066
|
|
|
$
|
11,503
|
|
|
$
|
12,339
|
|
|
$
|
11,455
|
|
Provision for warranty claims
|
1,194
|
|
|
731
|
|
|
2,442
|
|
|
1,931
|
|
||||
Warranty claims
|
(1,121
|
)
|
|
(1,190
|
)
|
|
(2,710
|
)
|
|
(2,489
|
)
|
||||
Other
|
(282
|
)
|
|
170
|
|
|
(214
|
)
|
|
317
|
|
||||
Balance at end of period
|
$
|
11,857
|
|
|
$
|
11,214
|
|
|
$
|
11,857
|
|
|
$
|
11,214
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Stock options
|
$
|
1,222
|
|
|
$
|
1,005
|
|
|
$
|
2,294
|
|
|
$
|
2,009
|
|
Restricted stock units
|
2,264
|
|
|
1,772
|
|
|
4,305
|
|
|
3,710
|
|
||||
Total
|
$
|
3,486
|
|
|
$
|
2,777
|
|
|
$
|
6,599
|
|
|
$
|
5,719
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Expected option term
|
6.47 years
|
|
6.89 years
|
|
4.49 years
|
|
4.56 years
|
Expected stock price volatility
|
27.69%
|
|
28.50%
|
|
28.41%
|
|
28.91%
|
Risk-free interest rate
|
2.82%
|
|
1.94%
|
|
2.47%
|
|
1.72%
|
Expected annual dividend yield
|
0.99%
|
|
1.26%
|
|
1.16%
|
|
1.30%
|
Weighted average grant date fair value
|
$26.21
|
|
$15.98
|
|
$18.78
|
|
$13.00
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Vesting period
|
2.16 years
|
|
3.08 years
|
|
3.89 years
|
|
3.86 years
|
Expected annual dividend yield
|
0.99%
|
|
1.26%
|
|
1.15%
|
|
1.30%
|
Estimated average grant date fair value per restricted stock unit
|
$87.20
|
|
$55.06
|
|
$72.95
|
|
$52.54
|
|
Unrealized gains (losses) on available-for-sale securities
|
|
Unrealized holding gains (losses) on derivative transactions
|
|
Foreign currency translation adjustments
|
|
Total
|
||||||||
Balance at March 31, 2018
|
$
|
—
|
|
|
$
|
(15,801
|
)
|
|
$
|
6,852
|
|
|
$
|
(8,949
|
)
|
Other comprehensive income (loss) before reclassifications
|
—
|
|
|
20,129
|
|
|
(17,115
|
)
|
|
3,014
|
|
||||
Amounts reclassified from other comprehensive income
|
—
|
|
|
(439
|
)
|
|
—
|
|
|
(439
|
)
|
||||
Net other comprehensive income (loss) during the period
|
—
|
|
|
19,690
|
|
|
(17,115
|
)
|
|
2,575
|
|
||||
Balance at June 30, 2018
|
$
|
—
|
|
|
$
|
3,889
|
|
|
$
|
(10,263
|
)
|
|
$
|
(6,374
|
)
|
|
Unrealized losses on available-for-sale securities
|
|
Unrealized holding gains (losses) on derivative transactions
|
|
Foreign currency translation adjustments
|
|
Total
|
||||||||
Balance at March 31, 2017
|
$
|
—
|
|
|
$
|
5,246
|
|
|
$
|
(18,138
|
)
|
|
$
|
(12,892
|
)
|
Other comprehensive income (loss) before reclassifications
|
(4
|
)
|
|
(5,537
|
)
|
|
5,640
|
|
|
99
|
|
||||
Amounts reclassified from other comprehensive income
|
—
|
|
|
(503
|
)
|
|
—
|
|
|
(503
|
)
|
||||
Net other comprehensive income (loss) during the period
|
(4
|
)
|
|
(6,040
|
)
|
|
5,640
|
|
|
(404
|
)
|
||||
Balance at June 30, 2017
|
$
|
(4
|
)
|
|
$
|
(794
|
)
|
|
$
|
(12,498
|
)
|
|
$
|
(13,296
|
)
|
|
Unrealized gains (losses) on available-for-sale securities
|
|
Unrealized holding gains (losses) on derivative transactions
|
|
Foreign currency translation adjustments
|
|
Total
|
||||||||
Balance at December 31, 2017
|
$
|
(4
|
)
|
|
$
|
(10,716
|
)
|
|
$
|
1,833
|
|
|
$
|
(8,887
|
)
|
Other comprehensive income (loss) before reclassifications
|
4
|
|
|
15,547
|
|
|
(12,096
|
)
|
|
3,455
|
|
||||
Amounts reclassified from other comprehensive income
|
—
|
|
|
(427
|
)
|
|
—
|
|
|
(427
|
)
|
||||
Net other comprehensive income (loss) during the period
|
4
|
|
|
15,120
|
|
|
(12,096
|
)
|
|
3,028
|
|
||||
Adoption of ASU 2017-12 (Note 2)
|
—
|
|
|
(515
|
)
|
|
—
|
|
|
$
|
(515
|
)
|
|||
Balance at June 30, 2018
|
$
|
—
|
|
|
$
|
3,889
|
|
|
$
|
(10,263
|
)
|
|
$
|
(6,374
|
)
|
|
Unrealized gains (losses) on available-for-sale securities
|
|
Unrealized holding gains (losses) on derivative transactions
|
|
Foreign currency translation adjustments
|
|
Total
|
||||||||
Balance at December 31, 2016
|
$
|
(4
|
)
|
|
$
|
6,773
|
|
|
$
|
(29,386
|
)
|
|
$
|
(22,617
|
)
|
Other comprehensive income (loss) before reclassifications
|
—
|
|
|
(6,975
|
)
|
|
16,888
|
|
|
9,913
|
|
||||
Amounts reclassified from other comprehensive income
|
—
|
|
|
(592
|
)
|
|
—
|
|
|
(592
|
)
|
||||
Net other comprehensive income (loss) during the period
|
—
|
|
|
(7,567
|
)
|
|
16,888
|
|
|
9,321
|
|
||||
Balance at June 30, 2017
|
$
|
(4
|
)
|
|
$
|
(794
|
)
|
|
$
|
(12,498
|
)
|
|
$
|
(13,296
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Weighted average shares of common stock outstanding, used in computing basic earnings per share
|
70,021
|
|
|
69,672
|
|
|
70,050
|
|
|
69,639
|
|
||||
Effect of dilutive stock options and restricted stock units
|
727
|
|
|
—
|
|
|
774
|
|
|
728
|
|
||||
Weighted average shares of common stock outstanding, used in computing diluted earnings per share
|
70,748
|
|
|
69,672
|
|
|
70,824
|
|
|
70,367
|
|
||||
Earnings (loss) per share of common stock attributable to Columbia Sportswear Company:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.14
|
|
|
$
|
(0.17
|
)
|
|
$
|
0.78
|
|
|
$
|
0.35
|
|
Diluted
|
$
|
0.14
|
|
|
$
|
(0.17
|
)
|
|
$
|
0.77
|
|
|
$
|
0.35
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net sales to unrelated entities:
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
280,170
|
|
|
$
|
238,196
|
|
|
$
|
643,014
|
|
|
$
|
571,380
|
|
LAAP
|
100,884
|
|
|
79,467
|
|
|
232,453
|
|
|
197,811
|
|
||||
EMEA
|
84,986
|
|
|
67,392
|
|
|
156,761
|
|
|
122,726
|
|
||||
Canada
|
15,579
|
|
|
13,849
|
|
|
56,699
|
|
|
50,780
|
|
||||
|
$
|
481,619
|
|
|
$
|
398,904
|
|
|
$
|
1,088,927
|
|
|
$
|
942,697
|
|
Segment income (loss) from operations:
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
39,432
|
|
|
$
|
22,314
|
|
|
$
|
113,819
|
|
|
$
|
84,956
|
|
LAAP
|
7,669
|
|
|
3,503
|
|
|
29,408
|
|
|
23,311
|
|
||||
EMEA
|
5,415
|
|
|
152
|
|
|
12,557
|
|
|
1,476
|
|
||||
Canada
|
(2,548
|
)
|
|
(2,563
|
)
|
|
3,995
|
|
|
3,264
|
|
||||
Total segment income from operations
|
49,968
|
|
|
23,406
|
|
|
159,779
|
|
|
113,007
|
|
||||
Unallocated corporate expenses
|
(40,219
|
)
|
|
(40,691
|
)
|
|
(90,709
|
)
|
|
(82,287
|
)
|
||||
Interest income, net
|
2,928
|
|
|
1,250
|
|
|
5,224
|
|
|
2,205
|
|
||||
Interest expense on note payable to related party
|
—
|
|
|
(180
|
)
|
|
—
|
|
|
(429
|
)
|
||||
Other non-operating (expense) income
|
(96
|
)
|
|
360
|
|
|
(364
|
)
|
|
307
|
|
||||
Income (loss) before income taxes
|
$
|
12,581
|
|
|
$
|
(15,855
|
)
|
|
$
|
73,930
|
|
|
$
|
32,803
|
|
|
June 30,
2018 |
|
December 31,
2017 |
|
June 30,
2017 |
||||||
Derivative instruments designated as cash flow hedges:
|
|
|
|
|
|
||||||
Currency forward contracts
|
$
|
493,828
|
|
|
$
|
448,448
|
|
|
$
|
314,000
|
|
Derivative instruments not designated as cash flow hedges:
|
|
|
|
|
|
||||||
Currency forward contracts
|
419,707
|
|
|
231,161
|
|
|
166,476
|
|
|
|
Balance Sheet Classification
|
|
June 30,
2018 |
|
December 31,
2017 |
|
June 30,
2017 |
||||||
Derivative instruments designated as cash flow hedges:
|
|
|
|
|
|
|
|
|
||||||
Derivative instruments in asset positions:
|
|
|
|
|
|
|
|
|
||||||
Currency forward contracts
|
|
Prepaid expenses and other current assets
|
|
$
|
4,692
|
|
|
$
|
1,648
|
|
|
$
|
1,648
|
|
Currency forward contracts
|
|
Other non-current assets
|
|
10,516
|
|
|
335
|
|
|
816
|
|
|||
Derivative instruments in liability positions:
|
|
|
|
|
|
|
|
|
||||||
Currency forward contracts
|
|
Accrued liabilities
|
|
1,022
|
|
|
9,336
|
|
|
3,151
|
|
|||
Currency forward contracts
|
|
Other long-term liabilities
|
|
327
|
|
|
3,820
|
|
|
1,665
|
|
|||
Derivative instruments not designated as cash flow hedges:
|
|
|
|
|
|
|
|
|
||||||
Derivative instruments in asset positions:
|
|
|
|
|
|
|
|
|
||||||
Currency forward contracts
|
|
Prepaid expenses and other current assets
|
|
2,471
|
|
|
683
|
|
|
505
|
|
|||
Derivative instruments in liability positions:
|
|
|
|
|
|
|
|
|
||||||
Currency forward contracts
|
|
Accrued liabilities
|
|
1,873
|
|
|
1,229
|
|
|
916
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
144,729
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
144,729
|
|
Time deposits
|
61,563
|
|
|
—
|
|
|
—
|
|
|
61,563
|
|
||||
U.S. Government treasury bills
|
—
|
|
|
121,352
|
|
|
—
|
|
|
121,352
|
|
||||
Available-for-sale short-term investments
(1)
:
|
|
|
|
|
|
|
|
||||||||
U.S. Government treasury bills
|
—
|
|
|
225,247
|
|
|
—
|
|
|
225,247
|
|
||||
U.S. Government-backed municipal bonds
|
—
|
|
|
37,335
|
|
|
—
|
|
|
37,335
|
|
||||
Other short-term investments:
|
|
|
|
|
|
|
|
||||||||
Mutual fund shares
|
1,432
|
|
|
—
|
|
|
—
|
|
|
1,432
|
|
||||
Other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments (Note 11)
|
—
|
|
|
7,163
|
|
|
—
|
|
|
7,163
|
|
||||
Other non-current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments (Note 11)
|
—
|
|
|
10,516
|
|
|
—
|
|
|
10,516
|
|
||||
Mutual fund shares
|
9,332
|
|
|
—
|
|
|
—
|
|
|
9,332
|
|
||||
Total assets measured at fair value
|
$
|
217,056
|
|
|
$
|
401,613
|
|
|
$
|
—
|
|
|
$
|
618,669
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments (Note 11)
|
$
|
—
|
|
|
$
|
2,895
|
|
|
$
|
—
|
|
|
$
|
2,895
|
|
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments (Note 11)
|
—
|
|
|
327
|
|
|
—
|
|
|
327
|
|
||||
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
3,222
|
|
|
$
|
—
|
|
|
$
|
3,222
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
282,860
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
282,860
|
|
Time deposits
|
52,808
|
|
|
—
|
|
|
—
|
|
|
52,808
|
|
||||
Other short-term investments:
|
|
|
|
|
|
|
|
||||||||
U.S. Government treasury bills
|
—
|
|
|
4,995
|
|
|
—
|
|
|
4,995
|
|
||||
U.S. Government-backed municipal bonds
|
—
|
|
|
25,338
|
|
|
—
|
|
|
25,338
|
|
||||
Available-for-sale short-term investments
(1)
|
|
|
|
|
|
|
|
||||||||
U.S. Government treasury bills
|
—
|
|
|
19,963
|
|
|
—
|
|
|
19,963
|
|
||||
U.S. Government-backed municipal bonds
|
—
|
|
|
73,582
|
|
|
—
|
|
|
73,582
|
|
||||
Other short-term investments:
|
|
|
|
|
|
|
|
||||||||
Mutual fund shares
|
1,438
|
|
|
—
|
|
|
—
|
|
|
1,438
|
|
||||
Other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments (Note 11)
|
—
|
|
|
2,331
|
|
|
—
|
|
|
2,331
|
|
||||
Other non-current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments (Note 11)
|
—
|
|
|
335
|
|
|
—
|
|
|
335
|
|
||||
Mutual fund shares
|
9,319
|
|
|
—
|
|
|
—
|
|
|
9,319
|
|
||||
Total assets measured at fair value
|
$
|
346,425
|
|
|
$
|
126,544
|
|
|
$
|
—
|
|
|
$
|
472,969
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments (Note 11)
|
$
|
—
|
|
|
$
|
10,565
|
|
|
$
|
—
|
|
|
$
|
10,565
|
|
Other long-term liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments (Note 11)
|
—
|
|
|
3,820
|
|
|
—
|
|
|
3,820
|
|
||||
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
14,385
|
|
|
$
|
—
|
|
|
$
|
14,385
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
307,724
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
307,724
|
|
Time deposits
|
66,217
|
|
|
—
|
|
|
—
|
|
|
66,217
|
|
||||
U.S. Government-backed municipal bonds
|
—
|
|
|
97,738
|
|
|
—
|
|
|
97,738
|
|
||||
Other short-term investments:
|
|
|
|
|
|
|
|
||||||||
Mutual funds shares
|
1,591
|
|
|
—
|
|
|
—
|
|
|
1,591
|
|
||||
Other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments (Note 11)
|
—
|
|
|
2,153
|
|
|
—
|
|
|
2,153
|
|
||||
Other non-current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments (Note 11)
|
—
|
|
|
816
|
|
|
—
|
|
|
816
|
|
||||
Mutual fund shares
|
8,298
|
|
|
—
|
|
|
—
|
|
|
8,298
|
|
||||
Total assets measured at fair value
|
$
|
383,830
|
|
|
$
|
100,707
|
|
|
$
|
—
|
|
|
$
|
484,537
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments (Note 11)
|
$
|
—
|
|
|
$
|
4,067
|
|
|
$
|
—
|
|
|
$
|
4,067
|
|
Other long-term liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments (Note 11)
|
—
|
|
|
1,665
|
|
|
—
|
|
|
1,665
|
|
||||
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
5,732
|
|
|
$
|
—
|
|
|
$
|
5,732
|
|
•
|
Continued growth, performance and profitability of our global DTC operations;
|
•
|
Unseasonable weather conditions or other unforeseen factors affecting consumer demand and the resulting effect on cancellations of advance wholesale orders, sales returns, wholesale customer accommodations, replenishment orders and reorders, DTC sales, changes in mix and volume of full price sales in relation to promotional and closeout product sales, and suppressed wholesale and end-consumer demand in subsequent seasons;
|
•
|
Industry trends affecting consumer traffic and spending in brick and mortar retail channels, which have created uncertainty regarding the long-term financial health of several of our U.S. wholesale customers;
|
•
|
The effects of changes in foreign currency exchange rates on sales, gross margin, operating income, and net income;
|
•
|
Difficult economic and competitive environments in certain key markets within the LAAP region, in particular, Korea;
|
•
|
Continued sales growth and profitability contributed by our EMEA region;
|
•
|
Performance of our Mountain Hardwear brand as we work to re-invigorate the brand in the marketplace;
|
•
|
The financial impact of activities associated with and resulting from Project CONNECT;
|
•
|
Further refinement of our 2017 TCJA provisional income tax estimates;
|
•
|
Impacts of changes in and further changes to tariffs or international trade policy;
|
•
|
Accelerated investment in and execution of demand creation, DTC systems infrastructure and other strategic priorities; and
|
•
|
The implementation of our global DTC platform and continued optimization of our enterprise resource planning ("ERP") platform.
|
•
|
Driving brand awareness and sales growth through increased, focused demand creation investments;
|
•
|
Enhancing consumer experience and digital capabilities in all of our channels and geographies;
|
•
|
Expanding and improving global DTC operations with supporting processes and systems; and
|
•
|
Investing in our people and optimizing our organization across our portfolio of brands.
|
•
|
Net sales for the
second
quarter of
2018
increase
d
$82.7 million
, or
21%
, to
$481.6 million
from
$398.9 million
in the
second
quarter of
2017
. With the adoption of ASC 606, certain concession fees within the LAAP region that were previously netted against net sales are now reported as SG&A expense beginning January 1, 2018. The
increase
in
second
quarter 2018 net sales and SG&A expenses include
$7.5 million
of incremental net sales and corresponding expenses resulting from this change in classification.
|
•
|
Net
income
attributable to Columbia Sportswear Company was
$9.7 million
, or
$0.14
per diluted share, for the
second
quarter of
2018
, including Project CONNECT program expenses and discrete costs of approximately
$1.4 million
, net of tax, or
$0.02
per diluted share, and incremental tax expense related to the TCJA of
$0.1 million
, compared to a net
loss
of
$11.5 million
, or
$(0.17)
per diluted share, in the
second
quarter of
2017
, which included Project CONNECT program expenses and discrete costs of approximately
$2.6 million
, net of tax, or
$0.04
per diluted share.
|
•
|
We paid a quarterly cash dividend of
$0.22
per share, or
$15.4 million
, in the
second
quarter of
2018
.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Net sales
|
100.0
|
|
|
100.0
|
|
|
100.0
|
|
|
100.0
|
|
Cost of sales
|
52.5
|
|
|
54.7
|
|
|
51.5
|
|
|
53.4
|
|
Gross profit
|
47.5
|
|
|
45.3
|
|
|
48.5
|
|
|
46.6
|
|
Selling, general and administrative expenses
|
46.1
|
|
|
50.3
|
|
|
42.8
|
|
|
43.9
|
|
Net licensing income
|
0.6
|
|
|
0.6
|
|
|
0.6
|
|
|
0.5
|
|
Income (loss) from operations
|
2.0
|
|
|
(4.4
|
)
|
|
6.3
|
|
|
3.2
|
|
Interest income, net
|
0.6
|
|
|
0.3
|
|
|
0.5
|
|
|
0.2
|
|
Other non-operating income
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
Income (loss) before income tax
|
2.6
|
|
|
(4.0
|
)
|
|
6.8
|
|
|
3.4
|
|
Income tax (expense) benefit
|
(0.4
|
)
|
|
1.2
|
|
|
(1.4
|
)
|
|
(0.6
|
)
|
Net income (loss)
|
2.2
|
|
|
(2.8
|
)
|
|
5.4
|
|
|
2.8
|
|
Net income attributable to non-controlling interest
|
0.2
|
|
|
0.1
|
|
|
0.4
|
|
|
0.3
|
|
Net income (loss) attributable to Columbia Sportswear Company
|
2.0
|
%
|
|
(2.9
|
)%
|
|
5.0
|
%
|
|
2.5
|
%
|
|
Three Months Ended June 30,
|
||||||||||||||||||
|
|
|
Adjust for
|
|
Constant-
|
|
|
|
|
|
Constant-
|
||||||||
|
Reported
|
|
Foreign
|
|
currency
|
|
Reported
|
|
Reported
|
|
currency
|
||||||||
|
Net Sales
|
|
Currency
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
||||||||
|
2018
|
|
Translation
|
|
2018
(1)
|
|
2017
|
|
% Change
|
|
% Change
(1)
|
||||||||
|
(In millions, except for percentage changes)
|
||||||||||||||||||
United States
|
$
|
280.2
|
|
|
$
|
—
|
|
|
$
|
280.2
|
|
|
$
|
238.2
|
|
|
18%
|
|
18%
|
LAAP
|
100.8
|
|
|
(3.7
|
)
|
|
97.1
|
|
|
79.5
|
|
|
27%
|
|
22%
|
||||
EMEA
|
85.0
|
|
|
(3.3
|
)
|
|
81.7
|
|
|
67.3
|
|
|
26%
|
|
21%
|
||||
Canada
|
15.6
|
|
|
(0.7
|
)
|
|
14.9
|
|
|
13.9
|
|
|
12%
|
|
7%
|
||||
|
$
|
481.6
|
|
|
$
|
(7.7
|
)
|
|
$
|
473.9
|
|
|
$
|
398.9
|
|
|
21%
|
|
19%
|
|
Three Months Ended June 30,
|
||||||||||||||||||
|
|
|
Adjust for
|
|
Constant-
|
|
|
|
|
|
Constant-
|
||||||||
|
Reported
|
|
Foreign
|
|
currency
|
|
Reported
|
|
Reported
|
|
currency
|
||||||||
|
Net Sales
|
|
Currency
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
||||||||
|
2018
|
|
Translation
|
|
2018
|
|
2017
|
|
% Change
|
|
% Change
|
||||||||
|
(In millions, except for percentage changes)
|
||||||||||||||||||
Columbia
|
$
|
414.8
|
|
|
$
|
(7.1
|
)
|
|
$
|
407.7
|
|
|
$
|
340.5
|
|
|
22%
|
|
20%
|
SOREL
|
11.4
|
|
|
(0.3
|
)
|
|
11.1
|
|
|
6.0
|
|
|
90%
|
|
85%
|
||||
prAna
|
38.1
|
|
|
—
|
|
|
38.1
|
|
|
35.0
|
|
|
9%
|
|
9%
|
||||
Mountain Hardwear
|
16.0
|
|
|
(0.1
|
)
|
|
15.9
|
|
|
16.1
|
|
|
(1)%
|
|
(1)%
|
||||
Other
|
1.3
|
|
|
(0.2
|
)
|
|
1.1
|
|
|
1.3
|
|
|
—%
|
|
(15)%
|
||||
|
$
|
481.6
|
|
|
$
|
(7.7
|
)
|
|
$
|
473.9
|
|
|
$
|
398.9
|
|
|
21%
|
|
19%
|
|
Three Months Ended June 30,
|
||||||||||||||||||
|
|
|
Adjust for
|
|
Constant-
|
|
|
|
|
|
Constant-
|
||||||||
|
Reported
|
|
Foreign
|
|
currency
|
|
Reported
|
|
Reported
|
|
currency
|
||||||||
|
Net Sales
|
|
Currency
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
||||||||
|
2018
|
|
Translation
|
|
2018
|
|
2017
|
|
% Change
|
|
% Change
|
||||||||
|
(In millions, except for percentage changes)
|
||||||||||||||||||
Apparel, Accessories and Equipment
|
$
|
394.6
|
|
|
$
|
(5.0
|
)
|
|
$
|
389.6
|
|
|
$
|
329.7
|
|
|
20%
|
|
18%
|
Footwear
|
87.0
|
|
|
(2.7
|
)
|
|
84.3
|
|
|
69.2
|
|
|
26%
|
|
22%
|
||||
|
$
|
481.6
|
|
|
$
|
(7.7
|
)
|
|
$
|
473.9
|
|
|
$
|
398.9
|
|
|
21%
|
|
19%
|
|
Three Months Ended June 30,
|
||||||||||||||||||
|
|
|
Adjust for
|
|
Constant-
|
|
|
|
|
|
Constant-
|
||||||||
|
Reported
|
|
Foreign
|
|
currency
|
|
Reported
|
|
Reported
|
|
currency
|
||||||||
|
Net Sales
|
|
Currency
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
||||||||
|
2018
|
|
Translation
|
|
2018
|
|
2017
|
|
% Change
|
|
% Change
|
||||||||
|
(In millions, except for percentage changes)
|
||||||||||||||||||
Wholesale
|
$
|
261.2
|
|
|
$
|
(3.9
|
)
|
|
$
|
257.3
|
|
|
$
|
211.6
|
|
|
23%
|
|
22%
|
DTC
|
220.4
|
|
|
(3.8
|
)
|
|
216.6
|
|
|
187.3
|
|
|
18%
|
|
16%
|
||||
|
$
|
481.6
|
|
|
$
|
(7.7
|
)
|
|
$
|
473.9
|
|
|
$
|
398.9
|
|
|
21%
|
|
19%
|
•
|
An increase in net sales associated with the adoption of ASC 606, where certain concession fees within the LAAP region that were previously netted against net sales are now reported as SG&A expense;
|
•
|
A higher proportion of full price product sales, which carry a higher gross margin; and
|
•
|
A favorable effect from foreign currency hedge rates;
|
•
|
A higher proportion of net sales to our international distributors, which generally carry lower gross margins.
|
•
|
Increased expenses to support our expanding global DTC operations;
|
•
|
An increase in expenses associated with the adoption of ASC 606, where certain concession fees within the LAAP region that were previously netted against net sales are now reported as SG&A expense;
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
|
|
Adjust for
|
|
Constant-
|
|
|
|
|
|
Constant-
|
||||||||
|
Reported
|
|
Foreign
|
|
currency
|
|
Reported
|
|
Reported
|
|
currency
|
||||||||
|
Net Sales
|
|
Currency
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
||||||||
|
2018
|
|
Translation
|
|
2018
(1)
|
|
2017
|
|
% Change
|
|
% Change
(1)
|
||||||||
|
(In millions, except for percentage changes)
|
||||||||||||||||||
United States
|
$
|
643.0
|
|
|
$
|
—
|
|
|
$
|
643.0
|
|
|
$
|
571.4
|
|
|
13%
|
|
13%
|
LAAP
|
232.4
|
|
|
(11.2
|
)
|
|
221.2
|
|
|
197.8
|
|
|
17%
|
|
12%
|
||||
EMEA
|
156.8
|
|
|
(11.5
|
)
|
|
145.3
|
|
|
122.7
|
|
|
28%
|
|
18%
|
||||
Canada
|
56.7
|
|
|
(2.7
|
)
|
|
54.0
|
|
|
50.8
|
|
|
12%
|
|
6%
|
||||
|
$
|
1,088.9
|
|
|
$
|
(25.4
|
)
|
|
$
|
1,063.5
|
|
|
$
|
942.7
|
|
|
16%
|
|
13%
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
|
|
Adjust for
|
|
Constant-
|
|
|
|
|
|
Constant-
|
||||||||
|
Reported
|
|
Foreign
|
|
currency
|
|
Reported
|
|
Reported
|
|
currency
|
||||||||
|
Net Sales
|
|
Currency
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
||||||||
|
2018
|
|
Translation
|
|
2018
|
|
2017
|
|
% Change
|
|
% Change
|
||||||||
|
(In millions, except for percentage changes)
|
||||||||||||||||||
Columbia
|
$
|
923.6
|
|
|
$
|
(23.2
|
)
|
|
$
|
900.4
|
|
|
$
|
789.6
|
|
|
17%
|
|
14%
|
SOREL
|
42.2
|
|
|
(1.2
|
)
|
|
41.0
|
|
|
33.2
|
|
|
27%
|
|
23%
|
||||
prAna
|
80.4
|
|
|
—
|
|
|
80.4
|
|
|
73.7
|
|
|
9%
|
|
9%
|
||||
Mountain Hardwear
|
40.4
|
|
|
(0.8
|
)
|
|
39.6
|
|
|
43.8
|
|
|
(8)%
|
|
(10)%
|
||||
Other
|
2.3
|
|
|
(0.2
|
)
|
|
2.1
|
|
|
2.4
|
|
|
(4)%
|
|
(13)%
|
||||
|
$
|
1,088.9
|
|
|
$
|
(25.4
|
)
|
|
$
|
1,063.5
|
|
|
$
|
942.7
|
|
|
16%
|
|
13%
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
|
|
Adjust for
|
|
Constant-
|
|
|
|
|
|
Constant-
|
||||||||
|
Reported
|
|
Foreign
|
|
currency
|
|
Reported
|
|
Reported
|
|
currency
|
||||||||
|
Net Sales
|
|
Currency
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
||||||||
|
2018
|
|
Translation
|
|
2018
|
|
2017
|
|
% Change
|
|
% Change
|
||||||||
|
(In millions, except for percentage changes)
|
||||||||||||||||||
Apparel, Accessories and Equipment
|
$
|
884.6
|
|
|
$
|
(17.3
|
)
|
|
$
|
867.3
|
|
|
$
|
769.7
|
|
|
15%
|
|
13%
|
Footwear
|
204.3
|
|
|
(8.1
|
)
|
|
196.2
|
|
|
173.0
|
|
|
18%
|
|
13%
|
||||
|
$
|
1,088.9
|
|
|
$
|
(25.4
|
)
|
|
$
|
1,063.5
|
|
|
$
|
942.7
|
|
|
16%
|
|
13%
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
|
|
Adjust for
|
|
Constant-
|
|
|
|
|
|
Constant-
|
||||||||
|
Reported
|
|
Foreign
|
|
currency
|
|
Reported
|
|
Reported
|
|
currency
|
||||||||
|
Net Sales
|
|
Currency
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
|
Net Sales
|
||||||||
|
2018
|
|
Translation
|
|
2018
|
|
2017
|
|
% Change
|
|
% Change
|
||||||||
|
(In millions, except for percentage changes)
|
||||||||||||||||||
Wholesale
|
$
|
605.1
|
|
|
$
|
(15.8
|
)
|
|
$
|
589.3
|
|
|
$
|
540.4
|
|
|
12%
|
|
9%
|
DTC
|
483.8
|
|
|
(9.6
|
)
|
|
474.2
|
|
|
402.3
|
|
|
20%
|
|
18%
|
||||
|
$
|
1,088.9
|
|
|
$
|
(25.4
|
)
|
|
$
|
1,063.5
|
|
|
$
|
942.7
|
|
|
16%
|
|
13%
|
•
|
An increase in net sales associated with the adoption of ASC 606, where certain concession fees within the LAAP region that were previously netted against net sales are now reported as SG&A expense;
|
•
|
A higher proportion of full price product sales, which carry a higher gross margin; and
|
•
|
Favorable effects from foreign currency hedge rates.
|
•
|
Increased expenses to support our expanding global DTC operations;
|
•
|
An increase in expenses associated with the adoption of ASC 606, where certain concession fees within the LAAP region that were previously netted against net sales are now reported as SG&A expense;
|
•
|
The unfavorable impact of the U.S. dollar relative to foreign currencies;
|
•
|
Program expenses and discrete costs related to Project CONNECT;
|
•
|
Increased incentive compensation expense; and
|
•
|
Increased demand creation spending.
|
•
|
Availability and quality of raw materials;
|
•
|
The prices of oil, leather, natural down, cotton, and other raw materials whose prices are determined by global commodity markets and can be very volatile;
|
•
|
Changes in labor markets and wage rates paid by our independent factory partners, which are often mandated by governments in the countries where our products are manufactured, for example in China and Vietnam;
|
•
|
Disruption to shipping and transportation channels utilized to bring our products to market;
|
•
|
Interest rates and currency exchange rates;
|
•
|
Availability of skilled labor and production capacity at contract manufacturers; and
|
•
|
General economic conditions.
|
•
|
Unseasonable weather conditions;
|
•
|
Our reliance, for certain demand and supply planning functions, on manual processes and judgments that are subject to human error;
|
•
|
Consumer acceptance of our products or changes in consumer demand for products of our competitors, which could increase pressure on our product development cycle;
|
•
|
Unanticipated changes in general market conditions or other factors, which may result in lower advance orders from wholesale customers and distributors, cancellations of advance orders or a reduction or increase in the rate of reorders placed by retailers; and
|
•
|
Weak economic conditions or consumer confidence, which could reduce demand for discretionary items such as our products.
|
Period
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
(1)
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
|
||||||
April 1, 2018 through April 30, 2018
|
158,889
|
|
|
$
|
79.93
|
|
|
158,889
|
|
|
$
|
107,137,000
|
|
May 1, 2018 through May 31, 2018
|
54,819
|
|
|
84.44
|
|
|
54,819
|
|
|
102,508,000
|
|
||
June 1, 2018 through June 30, 2018
|
51,085
|
|
|
91.56
|
|
|
51,085
|
|
|
97,831,000
|
|
||
Total
|
264,793
|
|
|
$
|
83.11
|
|
|
264,793
|
|
|
$
|
97,831,000
|
|
(a)
|
Exhibits
|
|
3.1
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
101
|
INS XBRL Instance Document
|
|
|
|
|
101
|
SCH XBRL Taxonomy Extension Schema Document
|
|
|
|
|
101
|
CAL XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
101
|
DEF XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
101
|
LAB XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
101
|
PRE XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
COLUMBIA SPORTSWEAR COMPANY
|
Date: August 2, 2018
|
|
/s/ JIM A. SWANSON
|
|
|
Jim A. Swanson
|
|
|
Senior Vice President, Chief Financial Officer
|
|
|
(Duly Authorized Officer and
Principal Financial and Accounting Officer)
|
1.
|
The name of the Corporation is Columbia Sportswear Company.
|
2.
|
The principal place of business and physical street address of the Corporation is 14375 Northwest Science Park Drive, Portland, Oregon 97229.
|
3.
|
Article II, Section A of the Third Restated Articles of Incorporation is replaced in its entirety as follows:
|
4.
|
Section D is added to Article II of the Third Restated Articles of Incorporation and reads in its entirety as follows:
|
5.
|
The above amendments to the Third Restated Articles of Incorporation were approved by the Board of Directors effective February 25, 2018 and March 30, 2018, respectively.
|
6.
|
Shareholder action was required to adopt the amendments. The above amendments to the Third Restated Articles of Incorporation were adopted by the holders of Common Stock at the Corporation’s annual meeting of shareholders on June 6, 2018.
|
7.
|
As of April 9, 2018, there were 70,066,439 shares of Common Stock outstanding and entitled to vote. There were 64,158,783 shares of Common Stock voted in favor of the amendment to Section A of Article II, 4,857,660 shares of Common Stock voted against the amendment to Section A of Article II and 108,099 shares of Common Stock abstained from voting on the amendment to Section A of Article II. There were 66,710,298 shares of Common Stock voted in favor of the amendment to add Section D to Article II, 323,655 shares of Common Stock voted against the amendment to add Section D to Article II and 88,778 shares of Common Stock abstained from voting on the amendment to add Section D to Article II.
|
8.
|
The name and address of an authorized representative with direct knowledge of the operations and business activities of the Corporation are:
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Columbia Sportswear Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
/s/TIMOTHY P. BOYLE
|
Timothy P. Boyle
|
President, Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Columbia Sportswear Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
/s/ JIM A. SWANSON
|
Jim A. Swanson
|
Senior Vice President, Chief Financial Officer
|
(1)
|
The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/TIMOTHY P. BOYLE
|
Timothy P. Boyle
|
President, Chief Executive Officer
|
Columbia Sportswear Company
|
(1)
|
The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ JIM A. SWANSON
|
Jim A. Swanson
|
Senior Vice President, Chief Financial Officer
|
Columbia Sportswear Company
|