10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________

FORM 10-Q

____________________________

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

For the quarterly period ended June 30, 2018

OR

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

For the transition period from_______to_______            

Commission file number 0-23939

 _____________________________

COLUMBIA SPORTSWEAR COMPANY

(Exact name of registrant as specified in its charter)

Oregon	93-0498284
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification Number)
14375 Northwest Science Park Drive Portland, Oregon	97229
(Address of principal executive offices)	(Zip Code)

(503) 985-4000

(Registrant's telephone number, including area code)

_____________________________________

Indicate by check mark whether 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  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ¨    No  x

The number of shares of Common Stock outstanding on July 20, 2018 was 69,960,922.

COLUMBIA SPORTSWEAR COMPANY

JUNE 30, 2018

INDEX TO FORM 10-Q

	PAGE NO.
PART I—FINANCIAL INFORMATION
Item 1. – Financial Statements – Columbia Sportswear Company (Unaudited)	2
Condensed Consolidated Balance Sheets	2
Condensed Consolidated Statements of Operations	3
Condensed Consolidated Statements of Comprehensive Income (Loss)	4
Condensed Consolidated Statements of Cash Flows	5
Notes to Condensed Consolidated Financial Statements	6
Item 2. – Management's Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3. – Quantitative and Qualitative Disclosures About Market Risk	34
Item 4. – Controls and Procedures	34
PART II—OTHER INFORMATION
Item 1. – Legal Proceedings	35
Item 1A. – Risk Factors	35
Item 2. – Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 6. – Exhibits	47
Signatures	48

1

PART I—FINANCIAL INFORMATION

Item 1.    FINANCIAL STATEMENTS

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

	June 30, 2018			December 31, 2017			June 30, 2017
ASSETS
Current Assets:
Cash and cash equivalents	$	510,656		$	673,166		$	620,639
Short-term investments	264,014			94,983			1,591
Accounts receivable, net of allowance of $6,889, $9,043, and $8,666, respectively	238,675			364,862			181,119
Inventories	570,473			457,927			559,544
Prepaid expenses and other current assets	76,399			58,559			42,053
Total current assets	1,660,217			1,649,497			1,404,946
Property, plant and equipment, at cost, net of accumulated depreciation of $472,447, $455,811, and $435,625, respectively	280,726			281,394			286,006
Intangible assets, net (Note 5)	128,065			129,555			131,045
Goodwill	68,594			68,594			68,594
Deferred income taxes	70,351			56,804			94,514
Other non-current assets	38,997			27,058			26,095
Total assets	$	2,246,950		$	2,212,902		$	2,011,200
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	290,812		$	252,301		$	264,881
Accrued liabilities (Note 6)	191,511			182,228			114,807
Income taxes payable	4,000			19,107			3,245
Total current liabilities	486,323			453,636			382,933
Other long-term liabilities	45,412			48,735			44,809
Income taxes payable	60,827			58,104			11,102
Deferred income taxes	13			168			156
Total liabilities	592,575			560,643			439,000
Commitments and contingencies (Note 12)
Columbia Sportswear Company Shareholders' Equity:
Preferred stock; 10,000 shares authorized; none issued and outstanding	—			—			—
Common stock (no par value); 250,000 shares authorized; 69,988, 69,995, and 69,686, issued and outstanding, respectively (Note 9)	23,162			45,829			31,045
Retained earnings	1,623,612			1,585,009			1,529,061
Accumulated other comprehensive loss (Note 8)	(6,374		)	(8,887		)	(13,296		)
Total Columbia Sportswear Company shareholders' equity	1,640,400			1,621,951			1,546,810
Non-controlling interest (Note 4)	13,975			30,308			25,390
Total equity	1,654,375			1,652,259			1,572,200
Total liabilities and equity	$	2,246,950		$	2,212,902		$	2,011,200

See accompanying notes to condensed consolidated financial statements.

2

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Net sales	$	481,619		$	398,904		$	1,088,927		$	942,697
Cost of sales	252,998			218,042			560,868			503,368
Gross profit	228,621			180,862			528,059			439,329
Selling, general and administrative expenses	222,192			200,598			465,560			413,413
Net licensing income	3,320			2,451			6,571			4,804
Income (loss) from operations	9,749			(17,285		)	69,070			30,720
Interest income, net	2,928			1,250			5,224			2,205
Interest expense on note payable to related party (Note 14)	—			(180		)	—			(429		)
Other non-operating (expense) income, net	(96		)	360			(364		)	307
Income (loss) before income tax	12,581			(15,855		)	73,930			32,803
Income tax (expense) benefit	(2,086		)	4,539			(14,706		)	(5,234		)
Net income (loss)	10,495			(11,316		)	59,224			27,569
Net income attributable to non-controlling interest	758			219			4,380			3,098
Net income (loss) attributable to Columbia Sportswear Company	$	9,737		$	(11,535	)	$	54,844		$	24,471
Earnings (loss) per share attributable to Columbia Sportswear Company (Note 9):
Basic	$	0.14		$	(0.17	)	$	0.78		$	0.35
Diluted	$	0.14		$	(0.17	)	$	0.77		$	0.35
Cash dividends per share	$	0.22		$	0.18		$	0.44		$	0.36
Weighted average shares outstanding (Note 9):
Basic	70,021			69,672			70,050			69,639
Diluted	70,748			69,672			70,824			70,367

See accompanying notes to condensed consolidated financial statements.

3

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			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

See accompanying notes to condensed consolidated financial statements.

4

COLUMBIA SPORTSWEAR COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	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		$	—

See accompanying notes to condensed consolidated financial statements.

5

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1—BASIS OF PRESENTATION AND ORGANIZATION

The accompanying unaudited condensed consolidated financial statements have been prepared by the management of Columbia Sportswear Company (together with its wholly owned subsidiaries and entities in which it maintains a controlling financial interest, the "Company") and in the opinion of management include all normal recurring material adjustments necessary to present fairly the Company's financial position as of June 30, 2018 and 2017, the results of operations for the three and six months endedJune 30, 2018 and 2017, and cash flows for the six months endedJune 30, 2018 and 2017. The December 31, 2017 financial information was derived from the Company's audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. A significant part of the Company's business is of a seasonal nature; therefore, results of operations for the three and six months endedJune 30, 2018 are not necessarily indicative of results to be expected for other quarterly periods or for the full year.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The Company, however, believes that the disclosures contained in this report comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934 for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Columbia Sportswear Company, its wholly owned subsidiaries and entities in which it maintains a controlling financial interest. 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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates and assumptions. Some of these more significant estimates relate to revenue recognition, including sales returns and miscellaneous claims from customers, allowance for doubtful accounts, excess, slow-moving and closeout inventories, product warranty, long-lived and intangible assets, goodwill, income taxes, and stock-based compensation.

NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except as disclosed below and in Note 3, pertaining to our adoption of new accounting pronouncements, there have been no significant changes to the Company's significant accounting policies as described in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Recently Adopted Accounting Pronouncements:

On January 1, 2018, the Company adopted Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that superseded the previous revenue recognition guidance (Topic 605). The updated guidance, and subsequent clarifications, collectively referred to as ASC 606, require an entity to recognize revenue when it transfers control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the guidance requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted this standard, utilizing the modified retrospective approach, with the cumulative effect of initially applying the new standard recognized in retained earnings. Accordingly, comparative prior period information has not been restated and continues to be reported under the accounting standards in effect for those periods.

In addition, the adoption of ASC 606 had the following effects: (1) fees paid to or retained by third parties in conjunction with certain concession-based retail arrangements in our Latin America and Asia Pacific ("LAAP") region, historically comprising approximately 2% of net sales, are now recognized as a component of selling, general and administrative ("SG&A") expenses; (2) wholesale sales returns reserves, estimated chargebacks and markdowns, and other provisions for customer refunds are now presented as accrued liabilities rather than netted within accounts receivable; and (3) the estimated cost of inventory associated with sales returns reserves are now presented within other current assets rather than inventories. The Company expects the timing of revenue recognition for its significant revenue streams to remain substantially unchanged, with no material effect on net sales. See the table below for the effect of the adoption of the standard on our Condensed Consolidated Balance Sheets as of January 1, 2018.

6

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

On January 1, 2018, the Company adopted ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory, which requires the recognition of the income tax effects of an intra-entity transfer of an asset, other than inventory, when the transfer occurs, eliminating an exception under previous GAAP in which the tax effects of intra-entity asset transfers were deferred until the transferred asset is sold to a third party or otherwise recovered through use. Income tax effects of intra-entity transfers of inventory will continue to be deferred until the inventory has been sold to a third party. The Company adopted this standard effective January 1, 2018 by applying the required modified retrospective approach with a cumulative-effect adjustment to retained earnings of certain previously deferred tax benefits. The Company anticipates the adoption of this standard will result in increased volatility in its future effective income tax rate. See the table below for the effect of the adoption of the standard on our Condensed Consolidated Balance Sheets as of January 1, 2018.

On January 1, 2018, the Company early-adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which simplifies the application of hedge accounting guidance to better portray the economic results of risk management activities in the financial statements. The guidance aligns the recognition and presentation of the effects of hedging instruments and hedged items in the financial statements, and includes certain targeted improvements to ease the application of the assessment of hedge effectiveness. The Company utilized the required modified retrospective transition method with the cumulative effect of initially applying the new standard recognized in retained earnings. See the table below for the effect of the adoption of the standard on our Condensed Consolidated Balance Sheets as of January 1, 2018.

On January 1, 2018, the Company adopted ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which requires equity investments that are not accounted for under the equity method of accounting to be measured at fair value with changes recognized in net income and also updates certain presentation and disclosure requirements. The adoption of this standard did not have a material effect on the Company's financial position, results of operations or cash flows.

The following table presents the effect of the adoption of ASC 606, ASU 2016-16 and ASU 2017-12 on our Condensed Consolidated Balance Sheets as of January 1, 2018 (in thousands):

	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

7

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

In accordance with the requirements of ASC 606, the effects of adoption of this standard on our Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations were as follows (in thousands):

	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

Recent Accounting Pronouncements Not Yet Adopted

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for most leases previously classified as operating leases. Subsequently, the FASB has issued amendments to clarify the codification or to correct unintended application of the new guidance. The Company will adopt the new standard on January 1, 2019. The new guidance is required to be applied using a modified retrospective approach at the beginning of the earliest period presented with optional practical expedients, or using an approved alternative approach at the beginning of the period in which it is adopted, rather than at the beginning of the earliest comparative period presented.

The Company is currently evaluating the impact of this guidance, including reviewing the standard's provisions, gathering and analyzing data to support further evaluation of real estate and non-real estate leases, identifying arrangements that may contain embedded leases, and evaluating the transition methodology to apply upon adoption. The Company is also evaluating the impact of the new accounting standard on the Company's financial statement disclosures, systems, processes and controls. Based on these efforts, the Company expects the adoption will result in a material increase in the assets and liabilities on its Consolidated Balance Sheets and is not expected to have a material effect on the results of operations or cash flows.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The pronouncement changes the impairment model for most financial assets and will require the use of an "expected loss" model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. This standard is effective beginning in the first quarter of 2020. The adoption of ASU 2016-13 is not expected to have a material effect on the Company's financial position, results of operations or cash flows.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. Under this guidance, if the carrying amount of a reporting unit exceeds its estimated fair value, an impairment charge shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. This standard is effective beginning in the first quarter of 2019, with early adoption permitted. The Company is evaluating the impact and expects the adoption of ASU 2017-04 to affect the amount and timing of future goodwill impairment charges, if any.

8

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-BasedPayment Accounting, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. As a result, most of the guidance in ASC 718 associated with employee share-based payments, including most requirements related to classification and measurement, applies to nonemployee share-based payment arrangements. This standard is effective beginning in the first quarter of 2019, with early adoption permitted. The Company is currently evaluating the impact this accounting standard will have on the Company's financial position, results of operations or cash flows.

NOTE 3—REVENUES

Disaggregated Revenue

As disclosed below in Note 10, the Company has aggregated its operating segments into four geographic segments: (1) United States, (2) LAAP, (3) Europe, Middle East and Africa ("EMEA") and (4) Canada, which are reflective of the Company's internal organization, management and oversight structure. The following tables disaggregate our operating segment revenue by product category and sales channel (in thousands), which we believe provides a meaningful depiction how the nature, timing, and uncertainty of revenues are affected by economic factors:

	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

9

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

	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

Accounting Policies

Revenues are recognized when our performance obligations are satisfied as evidenced by transfer of control of promised goods to our customers, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods or services. Within our 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 our direct-to-consumer ("DTC") channel, control generally transfers to the customer at the time of sale within our retail stores and concession-based arrangements and upon shipment to the customer with respect to e-commerce transactions.

The amount of consideration we receive and revenue we recognize 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 returns and claims based on historical rates as well as events and circumstances that indicate changes to historical rates of product returns and claims. 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.

Licensing income, which is presented separately as Net licensing income on the Condensed 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 our licensees.

We expense 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.

We treat 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 are recorded as SG&A expenses, and the direct costs associated with shipping goods to customers and consumers are recorded as costs of goods sold. Shipping and handling fees billed to customers are recorded as revenue.

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.

Performance Obligations

For the three and six months ended June 30, 2018, revenue recognized from performance obligations related to prior periods was not material. Revenue expected to be recognized in any future period related to remaining performance obligations is not material.

Contract Balances

10

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

As of June 30, 2018, contract liabilities recorded on the Condensed Consolidated Balance Sheets, which consisted of obligations associated with our gift card and customer loyalty programs, were not material.

NOTE 4—NON-CONTROLLING INTEREST

The Company owns a 60% controlling interest in a joint venture formed with Swire Resources Limited ("Swire") to support the development and operation of the Company's business in China. The accounts of the joint venture are included in the Condensed Consolidated Financial Statements. Swire's share of net income from the joint venture is included in Net income attributable to non-controlling interest in the Condensed Consolidated Statements of Operations for the three and six months endedJune 30,2018 and 2017. The 40% non-controlling equity interest in this entity is included in total equity as Non-controlling interest in the Condensed Consolidated Balance Sheets as of June 30, 2018 and 2017, and December 31, 2017.

The following table presents the changes in Columbia Sportswear Company shareholders' equity and non-controlling interest for the six months ended June 30, 2018 (in thousands, except per share amounts):

	Columbia Sportswear Company			Non-Controlling Interest			Total
Balance at December 31, 2017	$	1,621,951		$	30,308		$	1,652,259
Net income	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

The following table presents the changes in Columbia Sportswear Company shareholders' equity and non-controlling interest for the six months ended June 30, 2017 (in thousands, except per share amounts):

	Columbia Sportswear Company			Non-Controlling Interest			Total
Balance at December 31, 2016	$	1,560,820		$	20,691		$	1,581,511
Net income	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

NOTE 5—INTANGIBLE ASSETS, NET

Intangible assets that are determined to have finite lives include patents, purchased technology and customer relationships and are amortized over their estimated useful lives, which range from approximately 3 to 10 years, and are measured for impairment only when events or circumstances indicate the carrying value may be impaired. Goodwill and intangible assets with indefinite useful lives, including trademarks

11

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

and trade names, are not amortized but are evaluated for impairment on an annual basis during the fourth quarter of our fiscal year or earlier if events or circumstances indicate the carrying value may be impaired.

Intangible Assets

The following table summarizes the Company's identifiable intangible assets (in thousands):

	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

Amortization expense for intangible assets subject to amortization was $745,000 and $1,106,000 for the three months ended June 30,2018 and 2017, respectively, and was $1,490,000 and $2,393,000 for the six months endedJune 30, 2018 and 2017, respectively.

Annual amortization expense is estimated to be as follows for the years 2018 through 2022 (in thousands):

2018	$	2,980
2019	2,980
2020	2,537
2021	1,650
2022	1,650

NOTE 6—PRODUCT WARRANTY

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

A reconciliation of product warranties is as follows (in thousands):

	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

12

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

NOTE 7—STOCK-BASED COMPENSATION

The Company's Stock Incentive Plan (the "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 majority of all stock options and restricted stock unit grants outstanding under the Plan were granted in the first quarter of each fiscal year. Stock compensation is recognized based on an estimated number of awards that are expected to vest.

Stock-based compensation expense consisted of the following (in thousands):

	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

Stock Options

The Company estimates the fair value of stock options using the Black-Scholes model. Key inputs and assumptions used to estimate the fair value of stock options 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 following table presents the weighted average assumptions for stock options granted in the periods:

	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

During the six months endedJune 30, 2018 and 2017, the Company granted a total of 394,098 and 496,384 stock options, respectively. At June 30, 2018, unrecognized costs related to outstanding stock options totaled approximately $11,184,000, before any related tax benefit. The unrecognized costs related to stock options are amortized over the related vesting period using the straight-line attribution method. Unrecognized costs related to stock options at June 30, 2018 are expected to be recognized over a weighted average period of 2.71 years.

Restricted Stock Units

The Company estimates the fair value of service-based and performance-based restricted stock units using the Black-Scholes model. Key inputs and assumptions used to estimate the fair value of restricted stock units include the vesting period, expected annual dividend yield and closing price of the Company's common stock on the date of grant.

The following table presents the weighted average assumptions for restricted stock units granted in the periods:

	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

During the six months endedJune 30, 2018 and 2017, the Company granted 176,331 and 245,953 restricted stock units, respectively. At June 30, 2018, unrecognized costs related to outstanding restricted stock units totaled approximately $20,443,000, 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 June 30, 2018 are expected to be recognized over a weighted average period of 2.69 years.

13

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

NOTE 8—ACCUMULATED OTHER COMPREHENSIVE LOSS

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

The following table sets forth the changes in accumulated other comprehensive loss attributable to Columbia Sportswear Company, net of tax, for the three months ended June 30, 2018 (in thousands):

	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	)

The following table sets forth the changes in accumulated other comprehensive loss attributable to Columbia Sportswear Company, net of tax, for the three months ended June 30,2017 (in thousands):

	Unrealized losses on available-for-sale securities			Unrealized holding gains (losses) on derivative transactions			Foreign currency translation adjustments			Total
Balance at March 31, 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	)

The following table sets forth the changes in accumulated other comprehensive loss attributable to Columbia Sportswear Company, net of tax, for the six months ended June 30, 2018 (in thousands):

	Unrealized gains (losses) on available-for-sale securities			Unrealized holding gains (losses) on derivative transactions			Foreign currency translation adjustments			Total
Balance at December 31, 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	)

14

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

The following table sets forth the changes in accumulated other comprehensive loss attributable to Columbia Sportswear Company, net of tax, for the six months ended June 30, 2017 (in thousands):

	Unrealized gains (losses) on available-for-sale securities			Unrealized holding gains (losses) on derivative transactions			Foreign currency translation adjustments			Total
Balance at December 31, 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	)

NOTE 9—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 common shares used in the denominator for computing basic and diluted EPS is as follows (in thousands, except per share amounts):

	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

Stock options and service-based restricted stock units representing 378,360 and 2,641,676 shares of common stock for the three months ended June 30,2018 and 2017, respectively, were outstanding but were excluded from the computation of diluted EPS because their effect would be anti-dilutive as a result of applying the treasury stock method. Stock options and service-based restricted stock units representing 290,673 and 862,559 shares of common stock for the six months ended June 30, 2018 and 2017, respectively, were outstanding but were excluded from the computation of diluted EPS because their effect would be anti-dilutive as a result of applying the treasury stock method. In addition, performance-based restricted stock units representing 21,164 and 50,403 shares of common stock for the three months ended June 30,2018 and 2017, respectively, and 21,164 and 46,485 shares of common stock for the six months ended June 30, 2018 and 2017, respectively, were outstanding but were excluded from the computation of diluted EPS because these shares were subject to performance conditions that had not been met.

Common Stock Repurchase Plan

Since the inception of the Company's stock repurchase plan in 2004 through June 30, 2018, the Company's Board of Directors has authorized the repurchase of $700,000,000 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. 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. As of June 30, 2018, the Company had repurchased 22,158,325 shares under this program at an aggregate purchase price of approximately $602,169,000. During the three and six months endedJune 30, 2018, the Company repurchased 264,793 and 500,290 shares of the Company's common stock at an aggregate purchase price of $22,007,000 and $40,106,000, respectively. During the three and six months endedJune 30, 2017, the Company repurchased 48,943 and 665,095 shares of the Company's common stock at an aggregate purchase price of $2,542,000 and $35,542,000, respectively.

15

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

NOTE 10—SEGMENT INFORMATION

The Company has aggregated its operating segments into four geographic segments: (1) United States, (2) LAAP, (3) EMEA and (4) 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 and active lifestyle apparel, footwear, accessories, and equipment. Intersegment net sales and intersegment profits, which are recorded at a negotiated mark-up and eliminated in consolidation, are not material. Unallocated corporate expenses consist of expenses incurred by centrally-managed departments, including global information systems, finance and legal, executive compensation, unallocated benefit program expense, and other miscellaneous costs.

The geographic distribution of the Company's Net sales and Income (loss) from operations in the Condensed Consolidated Statements of Operations are summarized in the following table (in thousands) for the three and six months endedJune 30, 2018 and 2017.

	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

Concentrations

The Company had two customers that accounted for approximately 11.3% and 10.6%, respectively, of Accounts receivable, net of allowance on the Condensed Consolidated Balance Sheets as of June 30, 2018. The Company had two customers that accounted for approximately 12.6% and 10.9%, respectively, of Accounts receivable, net of allowance as of June 30, 2017. The Company had one customer that accounted for approximately 12.3% of Accounts receivable, net of allowance as of December 31, 2017. No single customer accounted for 10% or more of Net sales in the Condensed Consolidated Statements of Operations for the three or six months ended June 30, 2018 or 2017, or for the year ended December 31, 2017.

NOTE 11—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 U.S. dollar inventory purchases. The Company's prAna subsidiary uses U.S. dollars as its functional currency and is exposed to anticipated Canadian dollar denominated sales. The Company manages these risks by using currency forward and option 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, forward

16

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

points are excluded from the determination of hedge effectiveness and are included in current period cost of sales for hedges of anticipated U.S. dollar inventory purchases and in net sales for hedges of anticipated Canadian dollar sales on a straight-line basis over the life of the contract. In each accounting period, any difference between the change in fair value of the forward points and the amount recognized in earnings on a straight-line basis is recognized in Other comprehensive income in the Condensed Consolidated Statements of Comprehensive Income.  For option contracts, the change in fair value attributable to changes in time value are excluded from the assessment of hedge effectiveness and included in current period Cost of sales in the Condensed Consolidated Statements of Operations. Hedge ineffectiveness was not material during the three and six months endedJune 30, 2018 and 2017.

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 U.S. 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, 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 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):

	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

At June 30, 2018, approximately $2,594,000 of deferred net losses on both outstanding and matured derivatives accumulated in Other comprehensive income 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 income. Actual amounts ultimately reclassified to Net income in the Condensed Consolidated Statements of Comprehensive Income are dependent on U.S. dollar exchange rates in effect against the euro, renminbi, Canadian dollar, and yen when outstanding derivative contracts mature.

At June 30, 2018, 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 less than $5,000,000 at June 30, 2018. All of the Company's derivative counterparties have investment grade credit ratings. 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.

17

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

The following table presents the balance sheet classification and fair value of derivative instruments (in thousands):

	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

The following table presents the statement of operations effect and classification of derivative instruments (in thousands):

	Statement of Operations Classification	Three Months Ended June 30,						Six Months Ended June 30,
		2018			2017			2018			2017
Currency Forward and Option Contracts:
Derivative instruments designated as cash flow hedges:
Gain (loss) recognized in other comprehensive income or loss, net of tax	—	$	20,859		$	(5,537	)	$	15,627		$	(6,975	)
Gain reclassified from accumulated other comprehensive income or loss to income for the effective portion	Net sales	19			—			24			144
Gain (loss) reclassified from accumulated other comprehensive income or loss to income for the effective portion	Cost of sales	(1,398		)	897			(3,604		)	951
Gain recognized in income for amount excluded from effectiveness testing and for the ineffective portion	Net sales	6			2			12			5
Gain recognized in income for amount excluded from effectiveness testing and for the ineffective portion	Cost of sales	1,896			492			3,821			1,286
Derivative instruments not designated as cash flow hedges:
Gain (loss) recognized in income	Other non-operating expense	2,836			(1,723		)	2,234			(3,411		)

NOTE 12—COMMITMENTS AND CONTINGENCIES

Inventory Purchase Obligations

Inventory purchase obligations consist of open production purchase orders and other commitments for raw materials and sourced apparel, footwear, accessories, and equipment. At June 30, 2018, inventory purchase obligations were $424,968,000.

Litigation

The Company is a party to various legal claims, actions and complaints from time to time. Although the ultimate resolution of legal proceedings cannot be predicted with certainty, management believes that disposition of these matters will not have a material adverse effect on the Company's consolidated financial statements.

18

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

NOTE 13—FAIR VALUE MEASURES

Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

Level 1 — observable inputs such as quoted prices for identical assets or liabilities in active liquid markets;

Level 2 — inputs, other than the quoted market prices in active markets, that are observable, either directly or indirectly; or observable market prices in markets with insufficient volume or infrequent transactions; and

Level 3 — unobservable inputs for which there is little or no market data available, that require the reporting entity to develop its own assumptions.

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 are as follows (in thousands):

	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

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

19

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 are as follows (in thousands):

	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

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

20

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 are as follows (in thousands):

	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

Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from inputs, other than quoted market prices in active markets, which are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions.

Non-recurring Fair Value Measurements

There were no material assets and liabilities measured at fair value on a nonrecurring basis as of June 30, 2018, December 31, 2017 or June 30, 2017.

NOTE 14—RELATED PARTY TRANSACTIONS

The Company owns a 60% controlling interest in a joint venture formed with Swire, which is a related party. The joint venture arrangement involves Transition Services Agreements ("TSAs") with Swire, under which Swire provides administrative and information technology services to the joint venture. The Company continues to reduce its costs under the TSAs as it internalizes the back-office functions and related personnel, including the transition of the joint venture's systems to the Company's ERP platform in the second quarter of 2017. The joint venture incurred service fees, valued under the TSAs at Swire's cost, of $73,000 and $329,000 during the three months ended June 30, 2018 and 2017, respectively, and $144,000 and $845,000 during the six months ended June 30, 2018 and 2017, respectively. These fees are included in SG&A expenses in the Condensed Consolidated Statements of Operations.

As of June 30, 2018 and 2017, and December 31, 2017, net payables to Swire for service fees, interest expense and miscellaneous expenses totaled $83,000, $340,000 and $89,000, respectively, and were included in Accounts payable in the Condensed Consolidated Balance Sheets.

In addition to the transactions described above, Swire is also a third-party distributor of the Company's brands in certain regions outside of mainland China and purchases products from the Company under the Company's standard third-party distributor terms and pricing.

In April 2018, the Company announced its intent to buy out the remaining 40% non-controlling interest in the joint venture under the terms of the initial agreement. The buyout is subject to various terms and conditions, including regulatory approval in China, and is expected to be completed in early 2019.

21

COLUMBIA SPORTSWEAR COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

On June 14, 2018, the joint venture declared a cash dividend of RMB 341,347,000 ($53,330,000 USD) anticipated to be paid by the end of the third quarter of 2018 to stockholders of record as of June 14, 2018. The Company's share of this dividend will be $31,998,000 and is eliminated in consolidation. As of June 30, 2018, the Company recorded an Accrued liability for the dividend payable to Swire and a corresponding reduction to Non-controlling interest of $21,332,000 in the Condensed Consolidated Balance Sheets.

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Item 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This quarterly report contains forward-looking statements. Forward-looking statements include any statements related to our expectations regarding future performance or market position, including any statements regarding anticipated sales, gross margins and operating margins across markets, profitability and the effect of specified factors on profitability for 2018, expenses, sourcing costs, effects of unseasonable weather on our results of operations, inventory levels, investments in our business, investments in and implementation of our information technology systems, our operating model assessment referred to as Project CONNECT, intellectual property disputes, our DTC channels and other capital expenditures, including planned store additions, access to raw materials and factory capacity, financing and working capital requirements and resources, effects of the Tax Cuts and Jobs Act ("TCJA"), income tax rates and pre-tax income, our intended buyout of the remaining 40% non-controlling interest in our China joint venture, the effects of our adoption of recent accounting pronouncements, and our exposure to market risk associated with interest rates and foreign currency exchange rates.

These forward-looking statements, and others we make from time to time, are subject to a number of risks and uncertainties. Many factors may cause actual results to differ materially from those projected in forward-looking statements, including the risks described in Part II, Item 1A, Risk Factors. 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 expectations.

Our Business

As one of the largest outdoor and active lifestyle apparel and footwear companies in the world, we design, source, market, and distribute outdoor and active lifestyle apparel, footwear, accessories, and equipment primarily under the Columbia, SOREL, prAna, and Mountain Hardwear brands. Our products are sold through a mix of wholesale distribution channels, our own DTC channels and independent international distributors. In addition, we license some of our trademarks across a range of apparel, footwear, accessories, equipment, and home products.

The popularity of outdoor activities and active lifestyles, changes in consumer buying patterns and behaviors, changing design trends, consumer adoption of innovative performance technologies, variations in seasonal weather, and the availability and desirability of competitor alternatives affect consumer desire for our products. Therefore, we seek to drive, anticipate and respond to trends and shifts in consumer preferences by developing new products with innovative performance features and designs, creating persuasive and memorable marketing communications to generate consumer awareness, demand and retention, and adjusting the mix, price points and selling channels of available product offerings. Failure to anticipate or respond to consumer needs and preferences in a timely and adequate manner could have a material adverse effect on our sales and profitability.

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. In 2017, approximately 60% of our net sales and approximately 90% of our operating income were realized in the second half of the year, illustrating our dependence upon sales results in the second half of the year, as well as the less seasonal nature of our operating costs. The expansion of our DTC businesses has increased the proportion of sales, profits and cash flows that we generate in the second half of the year.

We generally solicit orders from wholesale customers and independent international distributors for the fall and spring seasons based on seasonal ordering deadlines that we establish to aid our efforts to plan manufacturing volumes to meet demand. We typically ship the majority of our advance spring season orders to customers beginning in January and continuing through June. Similarly, we typically ship the majority of our advance fall season orders to customers beginning in July and continuing through December. Generally, orders are subject to cancellation prior to the date of shipment.

Results of operations in any period should not be considered indicative of the results to be expected for any future period, particularly in light of persistent volatility in global economic and geopolitical conditions and volatility of foreign currency exchange rates which, when combined with seasonal weather patterns and inflationary or volatile sourcing costs, reduce the predictability of our business.

Business Outlook

The global business climate presents us with a great deal of uncertainty, making it difficult to predict future results. Consistent with the historical seasonality of the business, we anticipate 2018 profitability to be heavily concentrated in the second half of the year. Factors that could significantly affect our full year 2018 financial results include:

• 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;

23

• 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.

These factors and others may have a material effect on our financial condition, results of operations or cash flows, particularly with respect to quarterly comparisons.

Strategic Priorities

As part of our commitment to driving sustainable and profitable growth and relentless improvement, we remain focused on investment in our strategic priorities, including:

• 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.

Ultimately, we expect our investments to accelerate market share capture across our brand portfolio, expand gross margin, improve SG&A expense efficiency, and drive improved operating margin.

Ongoing Global ERP Implementation

With the implementation of our global ERP system in our Europe-direct business in June 2018, we have now substantially completed the major phases of this global rollout.

Consumer-First Platform ("C1")

During the second quarter of 2017, we commenced investment in our C1 initiative, which encompasses the global retail platform and Information Technology ("IT") systems infrastructure to support the growth and continued development of our omnichannel capabilities. The objective of this initiative is consistent with our strategic priorities to deliver an enhanced consumer experience, and to modernize and standardize our processes and systems to enable us to better anticipate and deliver against the needs of our consumers. This multi-year global initiative is currently in the build phase, targeting regional implementations beginning in the first half of 2019.

Experience First ("X1")

We have also launched an initiative, X1, within our DTC operations designed to enhance our e-commerce systems to take advantage of the changes in consumer browsing and purchasing behavior towards mobile devices. It encompasses an upgrade of our e-commerce platforms to offer improved search, browsing, checkout, loyalty, and customer care experiences for mobile shoppers, and is expected to be implemented in the first half of 2019. The project will be fully integrated with our C1 initiative and will be implemented across all of our brands.

Project CONNECT

During the second half of 2017, the company began implementation of Project CONNECT, which is aimed at aligning our resources to accelerate execution on our strategic priorities and includes initiatives to drive revenue, capture cost of sales efficiencies, generate SG&A expense savings, and improve our marketing effectiveness. The majority of Project CONNECT initiatives are being implemented throughout the business and will be part of our sustained go forward operational strategy.

24

As these improvements are realized, we intend to reallocate resources to our strategic priorities, including incremental demand creation spending and other investments to drive growth across our brands and distribution channels. We are realizing some financial benefits from these initiatives in 2018 and remain confident that we can generate more meaningful financial value capture in 2019 and beyond.

Results of Operations

The following discussion of our results of operations and liquidity and capital resources should be read in conjunction with the Condensed Consolidated Financial Statements and accompanying Notes that appear in Part I, Item 1 - Financial Statements of this quarterly report. All references to quarters relate to the quarter ended June 30 of the particular year.

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 the exchange rates used to translate net sales generated in foreign currencies into U.S. dollars. 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 measures 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.

Additionally, we reference certain other non-GAAP financial measures in our second quarter and first half 2018 financial results and updated full year 2018 financial outlook earnings release, located in the investor relations section of our website at http://investor.columbia.com/results.cfm; which information is not part of this Quarterly Report on Form 10-Q. A reconciliation of these non-GAAP financial measures to comparable measures reported under GAAP can be found in the supplemental financial tables that accompany our earnings release, along with an explanation of management’s rationale for referencing these non-GAAP financial measures.

Highlights of the Second Quarter of 2018

• Net sales for the second quarter of 2018increased $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.

25

The following table sets forth, for the periods indicated, the percentage relationship to net sales of specified items in our Condensed Consolidated Statements of Operations:

	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	%

Quarter Ended June 30, 2018 Compared to Quarter Ended June 30, 2017

Net Sales: Consolidated net sales increased $82.7 million, or 21% (19% constant-currency), to $481.6 million for the second quarter of 2018, from $398.9 million for the comparable period in 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 increases 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.

Sales by Geographic Region

Net sales by geographic region are summarized in the following table:

	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%

⁽¹⁾ Constant-currency net sales information is a non-GAAP financial measure, which excludes the effect of changes in foreign currency exchange rates against the U.S. dollar between comparable reporting periods. We calculate constant-currency net sales by translating net sales in foreign currencies for the current period into U.S. dollars at the average exchange rates that were in effect during the comparable period of the prior year.

Net sales in the United States increased $42.0 million, or 18%, to $280.2 million for the second quarter of 2018 from $238.2 million for the comparable period in 2017. The U.S. net sales increase was driven by our DTC and wholesale businesses. The net sales increase in our DTC business was led by increased net sales from our retail stores, followed by increased net sales from our e-commerce business. At June 30, 2018, we operated 134 retail stores, compared with 122 retail stores at June 30, 2017. The net sales increase in our wholesale business was driven by net sales increases across all brands, primarily led by the Columbia brand, and reflecting increased Spring 2018 advanced orders, partially aided by a shift in timing of Spring 2018 shipments from the first quarter into the second quarter, and increased replenishment orders.

26

Net sales in the LAAP region increased $21.3 million, or 27% (22% constant-currency), to $100.8 million for the second quarter of 2018, from $79.5 million for the comparable period in 2017. As described in Note 2 to the Condensed Consolidated Financial Statements, the net sales increase in the LAAP region included $7.5 million of net sales associated with the adoption of ASC 606. The remaining net sales increase in the LAAP region was driven by increased net sales in the LAAP distributor business resulting from early delivery of Fall 2018 orders and a net sales increase in the China wholesale business due to a timing shift, in which a higher proportion of Spring 2017 product was shipped in the first quarter of 2017 in advance of our ERP implementation in the second quarter of 2017.

Net sales in the EMEA region increased $17.7 million, or 26% (21% constant-currency), to $85.0 million for the second quarter of 2018 from $67.3 million for the comparable period in 2017. The net sales increase in the EMEA region was led by the EMEA distributor business, followed by a net sales increase in our Europe-direct business. Net sales in the EMEA distributor business increased due to increased Fall 2018 advance orders, as well as earlier delivery of Fall 2018 shipments. The net sales increase in our Europe-direct business was driven by increased net sales from the wholesale business followed by DTC net sales.

Net sales in Canada increased $1.7 million, or 12% (7% constant-currency), to $15.6 million for the second quarter of 2018 from $13.9 million for the comparable period in 2017. The net sales increase in Canada was led by a net sales increase in our DTC business, followed by a net sales increase the wholesale business.

Sales by Brand

Net sales by brand are summarized in the following table:

	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%

Columbia brand net sales increased $74.3 million, or 22% (20% constant-currency), to $414.8 million for the second quarter of 2018 from $340.5 million for the comparable period in 2017, driven by net sales increases in all major markets. The net sales increase was led by the U.S. DTC business, followed by the U.S. wholesale business, EMEA distributors, LAAP distributors, Korea, Europe-direct, China and Japan. Results included increased net sales of apparel, accessories & equipment, as well as footwear.

SOREL brand net sales increased $5.4 million, or 90% (85% constant-currency), to $11.4 million for the second quarter of 2018 from $6.0 million for the comparable period in 2017, driven by net sales increases in our U.S. wholesale and U.S. DTC businesses due to favorable demand for Spring 2018 styles as well as growth in our Europe-direct business.

prAna brand net sales increased $3.1 million, or 9%, to $38.1 million for the second quarter of 2018 from $35.0 million for the comparable period in 2017, driven by increased net sales in the U.S. DTC business, followed by a net sales increase in the U.S. wholesale business.

Mountain Hardwear brand net sales decreased $0.1 million, or 1% (1% constant-currency), to $16.0 million for the second quarter of 2018 from $16.1 million for the comparable period in 2017, driven by decreased net sales in the Korea, Europe-direct, and U.S. DTC businesses, partially offset by a net sales increase in the U.S. wholesale business.

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Sales by Product Category

Net sales by product category are summarized in the following table:

	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%

Net sales of apparel, accessories and equipment increased $64.9 million, or 20% (18% constant-currency), to $394.6 million for the second quarter of 2018 from $329.7 million for the comparable period in 2017. The apparel, accessories and equipment net sales increase was driven by net sales increases in the Columbia and prAna brands, partially offset by a slight decrease in the Mountain Hardwear brand.

Net sales of footwear increased $17.8 million, or 26% (22% constant-currency), to $87.0 million for the second quarter of 2018 from $69.2 million for the comparable period in 2017 and was driven by net sales increases in the Columbia and SOREL brands.

Sales by Channel

	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%

Net sales within the wholesale channel increased $49.6 million, or 23% (22% constant-currency), to $261.2 million for the second quarter of 2018 from $211.6 million for the comparable period in 2017, primarily driven by sales growth in the U.S., EMEA distributor, Europe-direct, and LAAP distributor businesses.

Net sales within the DTC channel increased $33.1 million, or 18% (16% constant-currency), to $220.4 million for the second quarter of 2018 from $187.3 million for the comparable period in 2017. The net sales increase in the DTC channel was primarily driven by net sales increases in the U.S.

Gross Profit: Gross profit, as a percentage of net sales, increased to 47.5% for the second quarter of 2018, from 45.3% for the comparable period in 2017. Gross profit expansion was primarily due to:

• 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;

partially offset by;

• A higher proportion of net sales to our international distributors, which generally carry lower gross margins.

Our gross profit and SG&A expenses as a percentage of sales may not be comparable to that of other companies in our industry because some of these companies include costs related to both their distribution network and retail store occupancy in cost of sales while we, like many others, include these expenses as a component of SG&A expense.

Selling, General and Administrative Expense: SG&A expense includes all costs associated with design, merchandising, marketing, distribution, store occupancy, and corporate functions, including related depreciation and amortization.

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SG&A expense increased $21.6 million, or 11%, to $222.2 million, or 46.1% of net sales, for the second quarter of 2018, including program expenses and discrete costs of approximately $1.9 million related to Project CONNECT and $7.5 million related to the adoption of ASC 606, from $200.6 million, or 50.3% of net sales, for the comparable period in 2017, which included program expenses and discrete costs of approximately $4.1 million related to Project CONNECT.The SG&A expense increase was primarily due to:

• 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;

•Increased demand creation spending;

•The unfavorable impact of strengthening foreign currencies relative to the U.S. dollar; and

•Increased incentive compensation expense.

Depreciation and amortization included in SG&A expense totaled $14.3 million for the second quarter of 2018, compared to $14.8 million for the same period in 2017.

Income Tax (Expense) Benefit: Income tax expense was $2.1 million for the second quarter of 2018, compared to a benefit of $4.5 million for the comparable period in 2017. Our effective income tax rate was 16.6% for the second quarter of 2018, compared to 28.6% for the same period in 2017. The decrease in our effective income tax rate was driven primarily by the reduction in the U.S. tax rate as a result of the TCJA, as well as increased tax benefits from stock-based compensation in the second quarter of 2018 compared to the prior year.

Net Income Attributable to Columbia Sportswear Company: Net incomeincreased to $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 loss per diluted share, for the comparable period in 2017, which included Project CONNECT program expenses and discrete costs of approximately $2.6 million, net of tax, or $0.04 per diluted share.

Six Months Ended June 30, 2018 Compared to the Six Months Ended June 30, 2017

Net Sales: Consolidated net sales increased $146.2 million, or 16% (13% constant-currency), to $1,088.9 million for the six months endedJune 30, 2018, from $942.7 million for the comparable period in 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 increases in 2018 net sales and SG&A expenses include $15.7 million of incremental net sales and corresponding expenses resulting from this change in classification.

Sales by Geographic Region

Net sales by geographic region are summarized in the following table:

	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%

⁽¹⁾ Constant-currency net sales information is a non-GAAP financial measure, which excludes the effect of changes in foreign currency exchange rates against the U.S. dollar between comparable reporting periods. We calculate constant-currency net sales by translating net sales in foreign currencies for the current period into U.S. dollars at the average exchange rates that were in effect during the comparable period of the prior year.

Net sales in the United States increased $71.6 million, or 13%, to $643.0 million for the six months endedJune 30, 2018 from $571.4 million for the comparable period in 2017. The U.S. net sales increase was led by our DTC business, followed by our wholesale business. The net sales increase in our DTC business was led by increased net sales from our retail stores, followed by increased net sales from our e-commerce business. The net sales increase in our wholesale business was driven by the Columbia and prAna brands and reflected increased Spring 2018 orders.

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Net sales in the LAAP region increased $34.6 million, or 17% (12% constant-currency), to $232.4 million for the six months endedJune 30, 2018 from $197.8 million for the comparable period in 2017. As described in Note 2 to the Condensed Consolidated Financial Statements, the net sales increase in the LAAP region included $15.7 million of net sales, associated with the adoption of ASC 606. The remaining net sales increase in the LAAP region was driven by increased net sales in China and Japan.

Net sales in the EMEA region increased $34.1 million, or 28% (18% constant-currency), to $156.8 million for the six months endedJune 30, 2018 from $122.7 million for the comparable period in 2017. The net sales increase in the EMEA region was led by our Europe-direct business, followed by our EMEA distributor business. The net sales increase in our Europe-direct business was led by increased wholesale net sales, followed by increased DTC net sales. The net sales increase in our EMEA distributor business was driven by earlier shipment of increased Fall 2018 advance orders.

Net sales in Canada increased $5.9 million, or 12% (6% constant-currency), to $56.7 million for the six months endedJune 30, 2018 from $50.8 million for the comparable period in 2017. The net sales increase in Canada was led by a net sales increase in our DTC business, followed by a net sales increase in our wholesale business.

Sales by Brand

Net sales by brand are summarized in the following table:

	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%

Columbia brand net sales increased $134.0 million, or 17% (14% constant-currency), to $923.6 million for the six months endedJune 30, 2018 from $789.6 million for the comparable period in 2017, driven by net sales increases in all major markets. The net sales increase was led by U.S. DTC, followed by U.S. wholesale, Europe-direct, Korea and EMEA distributor businesses. Results included increased net sales of apparel, accessories and equipment, as well as footwear.

SOREL brand net sales increased $9.0 million, or 27% (23% constant-currency), to $42.2 million for the six months endedJune 30, 2018 from $33.2 million for the comparable period in 2017, driven by net sales increases in our Europe-direct business, the U.S. DTC business, and Japan. The increased net sales was driven by favorable demand for SOREL's Spring 2018 product collection, as well as favorable demand for cold weather product during the first quarter.

prAna brand net sales increased $6.7 million, or 9%, to $80.4 million for the six months endedJune 30, 2018 from $73.7 million for the comparable period in 2017, driven by increased net sales in the U.S. wholesale business and the U.S. DTC business, partially offset by a net sales decrease in Canada.

Mountain Hardwear brand net sales decreased $3.4 million, or 8% (10% constant-currency), to $40.4 million for the six months endedJune 30, 2018 from $43.8 million for the comparable period in 2017, driven by decreased net sales in Korea and U.S. wholesale, partially offset by net sales increases in Canada and U.S. DTC.

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Sales by Product Category

Net sales by product category are summarized in the following table:

	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%

Net sales of apparel, accessories and equipment increased $114.9 million, or 15% (13% constant-currency), to $884.6 million for the six months endedJune 30, 2018 from $769.7 million for the comparable period in 2017. The apparel, accessories and equipment net sales increase was led by the Columbia and prAna brands, partially offset by a net sales decrease in the Mountain Hardwear brand.

Net sales of footwear increased $31.3 million, or 18% (13% constant-currency), to $204.3 million for the six months endedJune 30, 2018 from $173.0 million for the comparable period in 2017 and was driven by net sales increases in the Columbia and SOREL brands.

Sales by Channel

	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%

Net sales within the wholesale channel increased $64.7 million, or 12% (9% constant-currency), to $605.1 million for the six months endedJune 30, 2018 from $540.4 million for the comparable period in 2017, primarily driven by net sales growth in the U.S. wholesale, Europe-direct, EMEA distributor and Canada.

Net sales within the DTC channel increased $81.5 million, or 20% (18% constant-currency), to $483.8 million for the six months endedJune 30, 2018 from $402.3 million for the comparable period in 2017. The net sales increase in the DTC channel was primarily driven by net sales increases in the U.S. and LAAP regions.

Gross Profit: Gross profit, as a percentage of net sales, increased to 48.5% for the six months endedJune 30, 2018, from 46.6% for the comparable period in 2017. Gross profit expansion was primarily due to:

• 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.

Our gross profit and SG&A expenses as a percentage of sales may not be comparable to that of other companies in our industry because some of these companies include costs related to both their distribution network and retail store occupancy in cost of sales while we, like many others, include these expenses as a component of SG&A expense.

Selling, General and Administrative Expense: SG&A expense includes all costs associated with design, merchandising, marketing, distribution, store occupancy, and corporate functions, including related depreciation and amortization.

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SG&A expense increased $52.1 million, or 12.6%, to $465.6 million, or 42.8% of net sales, for the six months endedJune 30, 2018, including $15.7 million related to the adoption of ASC 606 as well as program expenses and discrete costs of approximately $12.9 million related to Project CONNECT, from $413.4 million, or 43.9% of net sales, for the comparable period in 2017, which included program expenses and discrete costs of approximately $5.3 million related to Project CONNECT.The SG&A expense increase was primarily due to:

• 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.

Depreciation and amortization included in SG&A expense totaled $28.6 million for the six months endedJune 30, 2018, compared to $29.5 million for the same period in 2017.

Income Tax (Expense) Benefit: Income tax expenseincreased to $14.7 million for the six months endedJune 30, 2018 from $5.2 million for the comparable period in 2017. Our effective income tax rate was 19.9% for the six months endedJune 30, 2018, compared to 16.0% for the same period in 2017. This increase was due to approximately $1.2 million of incremental TCJA related income tax expenses recorded during the six months endedJune 30, 2018, resulting from the issuance of additional clarifying guidance which drove further refinement of our provisional estimates that were recorded in the fourth quarter of 2017, as well as a non-recurring tax benefit recorded in the first quarter of 2017 primarily due to the resolution of tax audits in certain jurisdictions.

Net Income Attributable to Columbia Sportswear Company: Net incomeincreased $30.4 million, or 124.1%, to $54.8 million, or $0.77 per diluted share, for the six months endedJune 30, 2018, including Project CONNECT program expenses and discrete costs of approximately $9.8 million, net of tax, or $0.14 per diluted share, and incremental tax expense related to the TCJA of $1.2 million, or $0.02 per diluted share, compared with $24.5 million, or $0.35 per diluted share, for the comparable period in 2017, which included Project CONNECT program expenses and discrete costs of approximately $3.4 million, net of tax, or $0.05 per diluted share.

Liquidity and Capital Resources

Our primary ongoing funding requirements are for working capital, investments associated with expansion of our global DTC capabilities and ongoing ERP and information technology systems implementations, including complementary systems, general corporate needs, strategic business initiatives, and the expansion of our global operations. At June 30, 2018, we had total cash and cash equivalents of $510.7 million, compared to $673.2 million at December 31, 2017 and $620.6 million at June 30, 2017. In addition, we had short-term investments of $264.0 million at June 30, 2018, compared to $95.0 million at December 31, 2017 and $1.6 million at June 30, 2017. As a result of the enactment of the TCJA and the resulting change to a territorial system of taxation, a repatriation of cash and cash equivalents held by our foreign subsidiaries will no longer result in a significant tax cost.

Net cash provided by operating activities was $99.3 million for the six months endedJune 30, 2018, compared to $157.0 million for the same period in 2017. The decrease in cash provided by operating activities was primarily driven by changes in inventory balances reflecting earlier receipt of Fall 2018 inventory and changes in other assets, partially offset by a greater decrease in accounts receivable and higher net income during the six months endedJune 30, 2018 compared to the same period in 2017.

Net cash used in investing activities was $198.8 million for the six months endedJune 30, 2018, compared to $25.1 million for the comparable period in 2017. For the 2018 period, cash used in investing activities primarily consisted of $169.2 million of net purchases of short-term investments and $29.6 million for capital expenditures. For the same period in 2017, net cash used in investing activities primarily consisted of $24.3 million for capital expenditures and $0.9 million of net purchases of short-term investments.

Net cash used in financing activities was $60.1 million for the six months endedJune 30, 2018, compared to $67.8 million for the comparable period in 2017. For the 2018 period, net cash used in financing activities primarily consisted of dividend payments of $30.9 million and repurchases of common stock of $40.1 million, partially offset by net proceeds from stock plan activity of $10.8 million. For the same period in 2017, net cash used in financing activities primarily consisted of dividend payments of $25.0 million, repurchases of common stock of $35.5 million, and repayment of related party note payable of $14.2 million, partially offset by net proceeds from stock plan activity of $7.1 million.

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Short-term borrowings and credit lines

We have an unsecured, committed revolving line of credit available to fund our domestic working capital requirements. Monthly variable commitments available for funding average $100.0 million over the course of a calendar year. At June 30, 2018, no balance was outstanding under this line of credit. At June 30, 2018, we were in compliance with all associated covenants. Internationally, our subsidiaries have operating lines of credit in place guaranteed by the parent company with a combined credit limit of approximately $88.0 million at June 30, 2018. At June 30, 2018, no amount was outstanding under these subsidiary lines of credit.

We expect to fund our future capital expenditures with existing cash, operating cash flows and credit facilities. If the need arises, we may seek additional funding. Our ability to obtain additional financing will depend on many factors, including prevailing market conditions, our financial condition and our ability to negotiate favorable terms and conditions. Financing may not be available on terms that are acceptable or favorable to us, if at all.

Our operations are affected by seasonal trends typical in the outdoor apparel industry and have historically resulted in higher sales and profits in the third and fourth calendar quarters. This pattern has resulted primarily from the timing of shipments of fall season products to wholesale customers and proportionally higher sales from our DTC operations in the fourth quarter, combined with an expense base that is more consistent throughout the year. We believe that our liquidity requirements for at least the next 12 months will be adequately covered by existing cash, cash provided by operations and existing short-term borrowing arrangements. We plan to fund future cash dividends and share repurchases with cash generated from operating activities. Furthermore, we may choose to fund the future buyout of the non-controlling interest of our joint venture partnership with cash generated from operating cash flows or through a credit facility, among other sources.

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. We believe that the estimates, assumptions and judgments involved in the accounting policies referred to in our Annual Report on Form 10-K for the year ended December 31, 2017 have the greatest potential effect on our financial statements, so we consider these to be our critical accounting policies and estimates. Because of the uncertainty inherent in these matters, actual results may differ from the estimates we use in applying these critical accounting policies. We base our ongoing estimates on historical experience and other assumptions that we believe to be reasonable in the circumstances. Some of these critical accounting policies affect working capital account balances, including the policy for revenue recognition and related sales returns and claims from customers, the allowance for doubtful accounts, the provision for potential excess, slow-moving and closeout inventories, product warranty, income taxes, and stock-based compensation.

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 Management's Discussion and Analysis of Financial Condition and Results of Operations. These discussions typically occur at our quarterly audit committee meetings and include the basis and methodology used in developing and selecting these estimates, the trends in and amounts of these estimates, specific matters affecting the amount of and changes in these estimates, and any other relevant matters related to these estimates, including significant issues concerning accounting principles and financial statement presentation.

Except as disclosed in Note 2 and Note 3 of the Condensed Consolidated Financial Statements, pertaining to our adoption of new accounting pronouncements, there have been no significant changes to the Company's significant accounting policies as described in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Recent Accounting Pronouncements

See "Recent Accounting Pronouncements" in Note 2 of the Notes to the Condensed Consolidated Financial Statements.

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Item 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has not been any material change in the market risk disclosure contained in our Annual Report on Form 10-K for the year ended December 31, 2017.

Item 4.    CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We have evaluated, under the supervision and with the participation of management, including our chief executive officer and chief financial officer, the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (the "Exchange Act"). Based on that evaluation, our chief executive officer and chief financial officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective in ensuring that information required to be disclosed in our Exchange Act reports is (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, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

We are implementing an ERP system and complementary systems that support our operations and financial reporting. This implementation is occurring in phases globally over several years and has been executed in the majority of our operations to date, including implementation in our Europe-direct operation in the second quarter of 2018. Each implementation phase involves changes to the processes that constitute our internal control over financial reporting. We are taking steps to monitor and maintain appropriate internal control over financial reporting and will continue to evaluate these controls for effectiveness.

There were no other changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2018 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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PART II—OTHER INFORMATION

Item 1.    LEGAL PROCEEDINGS

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

Item 1A.    RISK FACTORS

In addition to the other information contained in this Form 10-Q, the following risk factors should be considered carefully in evaluating our business. Our business, financial condition, results of operations, or cash flows may be materially adversely affected by these and other risks. Please note that additional risks not presently known to us or that we currently deem immaterial may also impair our business and operations. The following risk factors include changes to and supersede the description of the risk factors associated with our business previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

We Face Many Challenges Executing Growth Strategies

Our business strategies aim to achieve sustainable, profitable growth by creating innovative products at competitive prices, focusing on product design, utilizing innovations to differentiate our brands from competitors, working to ensure that our products are sold through strong distribution partners capable of effectively presenting our brands to consumers, increasing the impact of consumer communications to drive demand for our brands and sell-through of our products, making sure our products are merchandised and displayed appropriately in retail environments, expanding our presence in key markets around the world, and continuing to build brand-enhancing DTC businesses. We intend to pursue these strategies across our portfolio of brands, product categories and geographic markets. Our failure to successfully implement our business strategies, including those identified in connection with the Company's operating model assessment, referred to as Project CONNECT, could have a material adverse effect on our financial condition, results of operations or cash flows.

To implement our business strategies and initiatives, we must continue to modify and fund various aspects of our business, to maintain and enhance our information systems and supply chain operations to improve efficiencies and to attract, retain and manage qualified personnel. These efforts, coupled with cost containment measures, place increasing strain on management, information technology, financial, product design, marketing, distribution, supply chain, and other resources, and we may have operating difficulties as a result. For example, in support of our business strategies, we are making significant investments in our business processes and information technology infrastructure that require significant management attention and corporate resources. These changes may make it increasingly difficult to pursue acquisitions or to adapt our information technology systems and business processes to integrate an acquired business. These integration challenges may also be present as we continue to fully integrate operations of prAna, which we acquired in May 2014. Our business strategies involve many risks and uncertainties that, if not managed effectively, may have a material adverse effect on our financial condition, results of operations or cash flows.

Our business strategies and related initiatives and increased expenditures could also cause our 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. If our sales or gross profit decline or fail to grow as planned and we fail to sufficiently leverage our operating expenses, our profitability will decline. This could result in a decision to delay, reduce, modify, or terminate our business strategies and initiatives, which could limit our ability to invest in and grow our business and could have a material adverse effect on our financial condition, results of operations or cash flows.

Initiatives to Upgrade Our Business Processes and Information Technology Infrastructure Involve Many Risks Which Could Result in, Among Other Things, Business Interruptions and Higher Costs

We regularly implement business process improvement and information technology initiatives intended to optimize our operational and financial performance. Our current initiatives include investment in our information technology systems infrastructure to support the growth and expansion of our DTC businesses, as well as continued optimization of and upgrades to our integrated ERP software solutions and other complementary information technology systems, which support our supply chain, go-to-market strategies and DTC strategies and operations. Implementation of and upgrades to these solutions and systems are highly dependent on coordination of numerous employees, contractors and software and system providers. The interdependence of these solutions and systems is a significant risk to the successful completion of these initiatives, and the failure of any one contractor or system could have a material adverse effect on the implementation of our overall information technology infrastructure. We may experience difficulties as we transition to these new or upgraded systems and processes, including loss or corruption of data, delayed shipments, interruptions of DTC operations, decreases in productivity as our personnel implement and become familiar with new systems, increased costs, and lost revenues. In addition, transitioning to these new or upgraded systems requires significant capital investments and personnel resources. Difficulties in implementing new or upgraded information systems or significant system failures, including system outages and loss of system availability, could disrupt our operations and have a material adverse effect on our financial condition, results of operations or cash flows.

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These implementations have a pervasive effect on our business processes and information systems across a significant portion of our operations. As a result, we are undergoing significant changes in our operational processes and internal controls as our implementations progress, which in turn require significant change management, including training of and testing by our personnel. If we are unable to successfully manage these changes as we implement these systems, including harmonizing our systems, data, processes, and reporting analytics, our ability to conduct, manage and control routine business functions could be negatively affected and significant disruptions to our business could occur. In addition, we could incur material unanticipated expenses, including additional costs of implementation or costs of conducting business. These risks could result in significant business disruptions or divert management's attention from key strategic initiatives and have a material adverse effect on our financial condition, results of operations or cash flows.

We Rely on Our Highly Customized Information Management Systems

Our business is increasingly reliant on information technology. Information systems are used across our supply chain and retail operations, from design to distribution and sales, and are used as a method of communication among employees, with our subsidiaries and liaison offices overseas and with our customers, vendors and retail stores. We also rely on our information systems to allocate resources, pay vendors, collect from customers, manage product data, develop demand and supply plans, forecast and report operating results, and meet regulatory requirements.

Our legacy product development, retail and other systems, on which we continue to manage a substantial portion of our business activities, are highly customized. As a result, the availability of internal and external resources with the expertise to maintain these systems is limited. Our legacy systems may not support desired functionality for our operations and may inhibit our ability to operate efficiently, which could have an adverse effect on our financial condition, results of operations or cash flows. 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. As a result, temporary processes or solutions may be required, including manual operations, which could significantly increase the risk of loss or corruption of data and information used by the business or result in business disruptions, which could have a material adverse effect on our financial condition, results of operations or cash flows.

A Breach in the Security of Our 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

We manage and store various types of proprietary information and sensitive and confidential data relating to our business, including personally identifiable information. Our information systems, or those of certain key partners whose information systems we may rely on, are subject to an increasing threat of continually evolving cybersecurity risks. Unauthorized parties may attempt to gain access to our systems or information through fraud or other means of deceiving our employees or third-party service providers. Hardware, software or applications we develop or obtain from third parties may contain defects in design or manufacture or other problems that could unexpectedly compromise information security. 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. We have implemented and regularly review and update processes and procedures to protect against unauthorized access to or use of secured data and to prevent data loss. However, the ever-evolving threats mean we must continually evaluate and adapt our systems and processes, and there is no guarantee that they will be adequate to safeguard against all data security breaches or misuses of data. For example, in February 2017, we reported the discovery of a cybersecurity incident involving our prAna.com e-commerce website, for which a number of responsive actions were taken, including notification of potentially affected prAna customers.

In addition, any future breaches of our security measures, or the accidental loss, inadvertent disclosure or unapproved or non-compliant dissemination of proprietary information or sensitive and confidential data about us, our customers, our suppliers, or our employees, could expose us, our customers, 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 and could have a material adverse effect on our financial condition, results of operations or cash flows. 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. For example, the European Union adopted a new regulation that became effective May 25, 2018, called the General Data Protection Regulation (“GDPR”), which requires companies to meet additional requirements regarding the handling of personal data, including its use, protection and the ability of persons whose data is stored to exercise certain individual rights with respect to their personal data. The GDPR calls for privacy and process enhancements, accompanied by a commitment of resources and other expenditures in support of compliance. Violations of the GDPR could result in significant penalties. More recently, California passed the California Data Privacy Protection Act, which goes into effect in January 2020 and provides broad rights to California consumers with respect to the collection and use of their information by businesses. The new California law may further expand the privacy and process enhancements and commitment of resources in support of compliance with California's regulatory requirements, and may lead to similar laws in other U.S. states.

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We Depend on Contract Manufacturers

Our products are manufactured by contract manufacturers worldwide. Although we enter into purchase order commitments with these contract manufacturers each season, we generally do not maintain long-term manufacturing commitments with them. Without long-term or reserve commitments, there is no assurance that we will be able to secure adequate or timely production capacity or favorable pricing if growth or product demand differs from our forecasts. Contract manufacturers may fail to perform as expected or our competitors may obtain production capacities that effectively limit or eliminate the availability of these resources to us. If a contract manufacturer fails to ship orders in a timely manner or to meet our standards or if we are unable to obtain necessary capacities, we could experience supply disruptions that would hinder our ability to satisfy demand through our DTC businesses and we may miss delivery deadlines or incur additional costs, which may cause our wholesale or distributor customers to cancel their orders, refuse to accept deliveries or demand a reduction in purchase prices, any of which could have a material adverse effect on our financial condition, results of operations or cash flows.

Reliance on contract manufacturers also creates quality control risks. Contract manufacturers may need to use sub-contracted manufacturers to fulfill demand and these manufacturers may have less experience producing our products or possess lower overall capabilities, 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 contractors to meet our quality control standards, may result in diminished product quality, which in turn could result in increased order cancellations, price concessions and returns, decreased consumer demand for our products, non-compliance with our product standards or regulatory requirements, or product recalls (or other regulatory actions), any of which may have a material adverse effect on our financial condition, results of operations or cash flows.

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

We May Be Adversely Affected by Volatility in Global Production and Transportation Costs and Capacity

Our product costs are subject to substantial fluctuation based on:

• 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.

Prolonged periods of inflationary pressure on some or all input costs will result in increased costs to produce our products that may result in reduced gross profit or necessitate price increases for our products that could adversely affect consumer demand for our products.

In addition, many of our products are manufactured outside of our principal sales markets, which requires these products to be transported by third parties, sometimes over large geographical distances. Shortages in ocean or air freight capacity and volatile fuel costs can result in rapidly changing transportation costs. Similarly, disruption to shipping and transportation channels due to labor disputes could cause us to rely more heavily on alternative modes of transportation to achieve timely delivery to our customers, resulting in significantly higher freight costs. Because we price our products in advance and changes in transportation and other costs may be difficult to predict, we may not be able to pass all or any portion of these higher costs on to our customers or adjust our pricing structure in a timely manner in order to remain competitive, either of which could have a material adverse effect on our financial condition, results of operations or cash flows.

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We May Be Adversely Affected by Volatile Economic Conditions

We are a consumer products company and are highly dependent on consumer discretionary spending and retail traffic patterns. Purchasing patterns of our wholesale customers can vary year to year as they attempt to forecast and match their seasonal advance orders, in-season replenishment and at-once orders to eventual seasonal consumer demand. In addition, as we have expanded our DTC businesses, we have increased our direct exposure to the risks associated with volatile and unpredictable consumer discretionary spending patterns. Consumer discretionary spending behavior is inherently unpredictable and consumer demand for our products may not reach our sales targets, or may decline, especially during periods of heightened economic uncertainty in our key markets. Our sensitivity to economic cycles and any related fluctuation in consumer demand may have a material adverse effect on our financial condition, results of operations or cash flows.

We May Be Adversely Affected by the Financial Health of Our Customers

In recent periods, sluggish economies and consumer uncertainty regarding future economic prospects in our key markets have had an adverse effect on the financial health of our customers, some of whom have reduced their store fleet, filed or may file for protection under bankruptcy laws, restructured, or ceased operations. We extend credit to our customers based on an assessment of the customer's financial condition, generally without requiring collateral. To assist in the scheduling of production and the shipping of seasonal products, we offer customers discounts for placing advance orders. We face increased risk of order reduction and cancellation and reduced availability of credit insurance coverage when dealing with financially ailing retailers or retailers struggling with economic uncertainty. Some of our significant wholesale customers and international independent distributors have liquidated or reorganized, while others have had financial difficulties in the past or have experienced tightened credit markets, sales declines and reduced profitability, which have had an adverse effect on our business. Future customer liquidations or reorganizations could have a material adverse effect on our financial condition, results of operations or cash flows. In addition, we may choose to limit our credit risk by reducing our level of business with 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, which could have a material adverse effect on our financial condition, results of operations or cash flows.

We May Be Adversely Affected by Retailer Consolidation

When our wholesale customers combine their operations through mergers, acquisitions or other transactions, their consolidated order volume may decrease while their bargaining power and the competitive threat they pose by marketing products under their own private labels may increase. Some of our significant customers have consolidated their operations in the past, which in turn has had a negative effect on our business. Future customer consolidations could have a material adverse effect on our financial condition, results of operations or cash flows.

We May Be Adversely Affected by Global Credit Market Conditions

Economic downturns and economic uncertainty generally affect global credit markets. Our vendors, customers 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 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 may impair our vendors' ability to finance the purchase of raw materials or general working capital needs to support our production requirements, resulting in a delay or non-receipt of inventory shipments during key seasons.

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

We May Be Adversely Affected by Currency Exchange Rate Fluctuations

We derive a significant portion of our net sales from markets outside the United States, comprised of sales to wholesale customers and directly to consumers by our consolidated subsidiaries in Europe, Korea, Japan, and Canada, our China joint venture, and sales to independent international distributors who operate within the EMEA and LAAP regions. Sales and related operational expenses of our foreign subsidiaries and China joint venture, as well as their respective assets and liabilities, are denominated in currencies other than the U.S. dollar and translated into U.S. dollars for periodic reporting purposes using the exchange rates in effect during each period. If the U.S. dollar strengthens against the foreign subsidiary's functional currency, translated revenues and expenses will decline on a relative basis.

The majority of our purchases of finished goods inventory from contract manufacturers are denominated in U.S. dollars, including purchases by our foreign subsidiaries and China joint venture. The cost of these products may be affected by relative changes in the value of the local currencies of these subsidiaries and the joint venture in relation to the U.S. dollar and in relation to the local currencies of our manufacturing vendors. In order to facilitate solicitation of advance orders from wholesale customers and distributors for the spring and fall seasons, we establish local-currency-denominated wholesale and retail price lists in each of our foreign subsidiaries approximately six to nine months prior to U.S. dollar-denominated seasonal inventory purchases. As a result, our consolidated results are directly exposed to transactional foreign currency

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exchange risk to the extent that the U.S. dollar strengthens during the six to nine months between when we establish seasonal local-currency prices and when we purchase inventory.

We employ several tactics in an effort to mitigate this transactional currency risk, including the use of currency forward and option contracts. We may also implement local-currency wholesale and retail price increases in our subsidiary and joint venture markets in an effort to mitigate the effects of currency exchange rate fluctuations on inventory costs. There is no assurance that our use of currency forward and option contracts and implementation of price increases, in combination with other tactics, 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, 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.

We enter into foreign currency forward exchange contracts to manage currency exposures for monetary assets and liabilities denominated in a currency other than an entity’s functional currency. As a result, any foreign currency remeasurement gains and losses recorded in other income (expense) are generally offset with gains and losses on the foreign currency forward exchange contracts in the same reporting period.

In addition to the direct currency exchange rate exposures described above, our business is indirectly exposed to currency exchange rate risks. For example, all of the EMEA and LAAP distributors to whom we sell purchase their inventory from us in U.S. dollars. Weakening of a distributor's functional currency relative to the U.S. dollar makes it more expensive for it to purchase finished goods inventory from us. In order to make those purchases and pay us on a timely basis, our distributors must exchange sufficient quantities of their functional currency for U.S. dollars through the financial markets. Some of our distributors have experienced periods during which they have been unable to obtain U.S. dollars in sufficient amounts to complete their purchase of finished goods inventory or to pay amounts owed for past purchases. Although each distributor bears the full risk of fluctuations in the value of its currency against the U.S. dollar, our business can be indirectly affected when adverse fluctuations cause a distributor to cancel portions of prior advance orders or significantly reduce its future purchases or both. In addition, price increases that our distributors implement in an effort to offset higher product costs may make our products less price-competitive in those markets and reduce consumer demand for our products.

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.

Primarily for each of the reasons described above, currency fluctuations and disruptions in currency exchange markets may have a material adverse effect on our financial condition, results of operations or cash flows.

Our Orders from Customers Are Subject to Cancellation

We do not have long-term contracts with any of our wholesale customers. We do have contracts with our independent international distributors; however, although these contracts may have annual purchase minimums which must be met in order to retain distribution rights, the distributors are not otherwise obligated to purchase product. Sales to our wholesale customers and distributors are generally on an order-by-order basis and are subject to rights of cancellation and rescheduling. 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 customers, including distributors, experience a significant downturn in business or fail to remain committed to our products or brands, these customers could postpone, reduce, cancel, or discontinue purchases from us. As a result, we could experience a decline in sales or gross profit, write-downs of excess inventory, increased discounts, extended credit terms to our customers, or uncollectable accounts receivable, which could have a material adverse effect on our financial condition, results of operations or cash flows.

We May Not Realize Returns on Our Investments in Our DTC Businesses

In recent years, our DTC businesses have grown substantially, and we anticipate continued growth in the future. Accordingly, we continue to make significant investments in our online platforms and physical retail locations, including the investment in our global retail platform, system upgrades, entering into long-term store leases, constructing leasehold improvements, purchasing fixtures and equipment, and investing in inventory and personnel. Since many of the costs of our DTC businesses are fixed, we may be unable to reduce expenses in order to avoid losses or negative cash flows if we have insufficient sales. Our DTC businesses are dependent upon our ability to operate in an increasingly complex and evolving marketplace and the results of these businesses are highly dependent on retail traffic patterns in our physical locations and our on-line platforms where our products are sold, as well as the spending patterns of our consumers. If we are unable to effectively navigate the DTC marketplace or anticipate consumer buying patterns, our ability to generate sales through our DTC businesses may be adversely affected, which in turn could have a material adverse effect on our financial condition, results of operations or cash flows.

Labor costs and labor-related benefits are primary components in the cost of our retail operations and are affected by various federal, state and foreign laws governing matters such as minimum wage rates, overtime compensation and other requirements. For example, we have seen significant political pressure and legislative actions to increase the minimum wage rate in many of the jurisdictions within which our stores

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are located. If we are unable to operate profitable stores or if we close stores, we may experience significant reductions in sales and income or incur significant write-downs of inventory, severance costs, lease termination costs, impairment losses on long-lived assets, or loss of working capital, which could have a material adverse effect on our financial condition, results of operations or cash flows.

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 and as a result harm our financial condition, results of operations or cash flows.

Our Results of Operations Could Be Materially Harmed If We Are Unable to Accurately Match Supply Forecast with Consumer Demand for Our Products

Many factors may significantly affect demand for our products, including, among other things, economic conditions, fashion trends, the financial condition of our independent international distributors and wholesale customers, consumer and customer preferences, and weather, making it difficult to accurately forecast demand for our products and our future results of operations. To minimize our purchasing costs, the time necessary to fill customer orders and the risk of non-delivery, we place a significant amount of orders for our products with contract manufacturers prior to receiving orders from our customers, and we maintain an inventory of various products that we anticipate will be in greatest demand. In addition, customers are generally allowed to cancel orders prior to shipment.

Factors that could affect our ability to accurately forecast demand for our products include:

• 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.

In some cases, we may produce quantities of product that exceed actual demand, which could result in higher inventory levels that we need to liquidate at discounted prices. During periods of unseasonable weather conditions, weak economic conditions, unfavorable currency fluctuations, or unfavorable geopolitical conditions in key markets, we may experience a significant increase in the volume of order cancellations by our customers, including cancellations resulting from the bankruptcy, liquidation or contraction of some customers' operations. We may not be able to sell all of the products we have ordered from contract manufacturers or that we have in our inventory. Inventory levels in excess of customer demand may result in inventory write-downs and the sale of excess inventory at discounted prices through our owned outlet stores or third-party liquidation channels, which could have a material adverse effect on our brand image, financial condition, results of operations, or cash flows.

Conversely, if we underestimate demand for our products or if our contract manufacturers are unable to supply products when we need them, we may experience inventory shortages. Inventory shortages may prevent us from fulfilling customer orders, delay shipments to customers, negatively affect customer relationships, result in increased costs to expedite production and delivery, and diminish our ability to build brand loyalty. Shipments delayed due to limited factory capacity, transportation or port disruption or other factors could result in order cancellations by our customers, which could have a material adverse effect on our financial condition, results of operations or cash flows.

We Face Risks Associated with Consumer Preferences and Fashion Trends

Changes in consumer preferences, consumer purchasing behavior or consumer interest in outdoor activities may have a material adverse effect on our business and changes in fashion trends may have a greater effect than in the past as we expand our offerings to include more product categories in more geographic areas that are generally more sensitive to fashion trends. We also face risks because our success depends on our and our customers' abilities to anticipate consumer preferences and buying patterns, including the growth of e-commerce off-price retailing, and respond to changes in a timely manner. Lead times for many of our products may make it more difficult for us to respond rapidly to new or changing product trends or consumer preferences. In addition, our decisions about product designs often are made far in advance of consumer acceptance. Although we try to manage our inventory risk by soliciting advance order commitments from customers, we generally place a significant portion of our seasonal production orders with our contract manufacturers before we have received all of a season's advance orders from customers, and orders may be canceled by customers before shipment. If we or our customers fail to anticipate and respond to consumer preferences or fail to respond in a timely manner or if we or our customers are unable to effectively navigate a transforming retail marketplace, we could suffer reputational damage to our brands and we may experience lower sales, excess inventories and lower profit

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margins in current and future periods, any of which could have a material adverse effect on our financial condition, results of operations or cash flows.

We May Be Adversely Affected by Weather Conditions, Including Global Climate Change Trends

Our business is adversely affected by unseasonable weather conditions. A significant portion of the sales of our products is dependent in part on the weather and likely to decline in years in which weather conditions do not stimulate demand for our products. Periods of unseasonably warm weather in the fall or winter or unseasonably cold weather in the spring and summer may have a material adverse effect on our financial condition, results of operations or cash flows. Unintended inventory accumulation by our wholesale customers resulting from unseasonable weather in one season generally negatively affects orders in future seasons, which may have a material adverse effect on our financial condition, results of operations or cash flows.

A significant portion of our business is highly dependent on cold-weather seasons and patterns to generate consumer demand for our cold-weather apparel and footwear. Consumer demand for our cold-weather products may be negatively affected to the extent global weather patterns trend warmer, reducing typical patterns of cold-weather events or increasing weather volatility, which could have a material adverse effect on our financial condition, results of operations or cash flows.

Acquisitions Are Subject to Many Risks

From time to time, we may pursue growth through strategic acquisitions of assets or companies. Acquisitions, such as our acquisition of prAna in May 2014, 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.

We May Not Realize All of the Anticipated Benefits of Our China Joint Venture or Complete the Buyout of the Remaining 40% Non-Controlling Interest

Effective January 2014, our joint venture in China with Swire, in which we hold a 60% interest, began operations. In April 2018, we announced our intention to buyout the remaining 40% interest in the joint venture from Swire. The joint venture and completion of this buyout is subject to a number of risks and uncertainties. For example, while our joint venture partner continues to hold a 40% interest, it has protective voting rights with respect to specified major business decisions of the joint venture, and we may experience difficulty reaching agreement as to implementation of various changes to the joint venture's business. In addition, the buyout is subject to various conditions, including regulatory approval in China. For these reasons, or as a result of other factors, we may not realize all of the anticipated benefits of the joint venture or complete the buyout, and our results of operations could be adversely affected.

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 the effects of foreign and domestic laws and regulations, foreign or domestic government fiscal and political crises, political and economic disputes and sanctions, 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 manufacture or sell products. These factors, among others, may affect our ability to sell products in certain markets, our ability to collect accounts receivable, our ability to manufacture products or procure materials, and our cost of doing business.

For example, in the past, political and economic turmoil in certain South American distributor markets have resulted in currency and import restrictions, limiting our ability to sell products in some countries in this region. Also, Russia constitutes a significant portion of our non-U.S. sales and operating income and a significant change in conditions in that market has had an adverse effect on our results of operations in the

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past. The United Kingdom's June 23, 2016 referendum, in which voters approved its exit from the European Union (commonly referred to as "Brexit"), has created economic uncertainty and volatility in currency exchange rates, and the potential adverse effects of changes to the legal and regulatory framework that apply to the United Kingdom and its relationship with the European Union, and the associated effects on our European operations, are unknown. If any of these or other factors make the conduct of business in a particular country, or region, undesirable or impractical, our business may be materially and adversely affected.

In the U.S., the current administration has publicly supported trade proposals, including recently established tariffs on U.S. products imported from China, modifications to international trade policy, and other changes that may affect U.S. trade relations with other countries, any of which may require us to significantly modify our current business practices or may otherwise materially and adversely affect our business.

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. Any country in which our products are produced or sold may eliminate, adjust or impose new import limitations, duties, anti-dumping penalties, or other charges or restrictions, any of which could have a material adverse effect on our financial condition, results of operations or cash flows.

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 based on an analysis and interpretation of local tax laws and regulations. This analysis requires a significant amount of judgment and estimation and is often based on various assumptions about the future actions of the local tax authorities. 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, which may have a material adverse effect on our financial condition, results of operations or cash flows. 

On December 22, 2017, the U.S. government enacted comprehensive tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the "TCJA").  The TCJA makes broad and complex changes to the U.S. tax code. Implementation of the TCJA legislation required us to record incremental provisional tax expense in 2017, which significantly increased our 2017 effective tax rate. In addition, the TCJA may also materially affect our 2018 effective tax rate and our financial condition, results of operations or cash flows. The actual amounts may differ from our provisional estimates due to, among other factors, a change in interpretation of the applicable revisions to the U.S. 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 U.S. tax code, and state tax implications.

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 (BEPS) 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. As these changes are adopted by countries, tax uncertainty could increase and may adversely affect our provision for income taxes.

We Operate in Highly Competitive Markets

The markets for apparel, footwear, accessories, and equipment are highly competitive, as are the markets for our licensed products. In each of our geographic markets, we face significant competition from global and regional branded apparel, footwear, accessories, and equipment companies, including competition from companies with significantly greater resources than ours.

Retailers who are our customers often pose our most significant competitive threat by designing and marketing apparel, footwear, accessories, and equipment under their own private labels. For example, in the United States and Europe, several of our largest customers have developed significant private label brands that compete directly with our products. These retailers have assumed an increasing degree of inventory risk in their private label products and, as a result, may first cancel advance orders with us in order to manage their own inventory levels downward during periods of unseasonable weather or weak economic cycles. As our DTC businesses grow, we also experience direct competition from retailers that are our customers, some of which primarily operate e-commerce operations and employ aggressive pricing strategies. We also compete with other companies for the production capacity of contract manufacturers from which we source our products and for import capacity. Many of our competitors are significantly larger than we are and have substantially greater financial, distribution, marketing, and other resources, more stable manufacturing resources and greater brand strength than we have. In addition, when our competitors combine operations through mergers, acquisitions or other transactions, their competitive strengths may increase.

Increased competition may result in reduced access to production capacity, challenges in obtaining favorable locations for our retail stores, reductions in display areas in retail locations, reductions in sales, or reductions in our profit margins, any of which may have a material adverse effect on our financial condition, results of operations or cash flows.

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We Rely on Innovation to Compete in the Market for Our Products

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. Although we are committed to designing innovative and functional products that deliver relevant performance benefits to consumers, who participate in a wide range of competitive and recreational outdoor activities, if we fail to introduce technical innovation in our products that address consumers' performance expectations, we could suffer reputational damage to our brands and demand for our products could decline.

As we strive to achieve product innovations, 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. In addition, technical innovations often involve more complex manufacturing processes, which may lead to higher instances of quality issues, and if we experience problems with the quality of our products, we may incur substantial expense to address the problems and any associated product risks. Failure to successfully bring to market innovations in our product lines could have a material adverse effect on our financial condition, results of operations or cash flows.

Our Success Depends on Our Use and Protection of Intellectual Property Rights

Our registered and common law trademarks and our patented or patent-pending designs and technologies have significant value and are important to our ability to differentiate our products from those of our competitors and to create and sustain demand for our products. We also place significant value on our trade dress, and the overall appearance and image of our products. We regularly discover products that are counterfeit reproductions of our products or that otherwise infringe on our proprietary rights. Counterfeiting activities typically increase as brand recognition increases, especially in markets outside the United States. Increased instances of counterfeit manufacture 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. We also license our proprietary rights to third parties. We could suffer reputational damage to our brands if we fail to choose appropriate licensees and licensed product categories. In addition to our own intellectual property rights, many of the intellectual property rights in the technology, fabrics and processes used to manufacture our products are generally owned or controlled by our suppliers and are generally not unique to us. In those cases, we may not be able to adequately protect our products or differentiate their performance characteristics and fabrications from those of our competitors. The management of our intellectual property portfolio may affect the strength of our brands, which may in turn have a material adverse effect on our financial condition, results of operations or cash flows.

Although we have not been materially inhibited from selling products in connection with patent, trademark and trade dress disputes, as we focus on innovation in our product lines, extend our brands into new product categories and expand the geographic scope of our marketing, we may become subject to litigation based on allegations of infringement or other improper use of intellectual property rights of third parties, including third party trademark, copyright and patent rights. An increasing number of our products include technologies or designs for which we have obtained or applied for patent protection. Failure to successfully obtain and maintain patents on these innovations could negatively affect our ability to market and sell our products. Litigation is often necessary to defend against claims of infringement or to enforce and protect our intellectual property rights. As we utilize e-commerce and social media to a greater degree in our sales and marketing efforts, we face an increasing risk of patent infringement claims from non-operating entities and others covering broad functional aspects of internet operations. 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. Any of these outcomes may have a material adverse effect on our financial condition, results of operations or cash flows.

In addition, as we continue to operate globally, expand the geographic scope of our business, and adopt new technologies and product categories, intellectual property disputes may increase, making it more expensive and challenging to establish and protect our intellectual property rights and to defend against claims of infringement by others, which could have a material adverse effect on our financial condition, results of operations or cash flows.

Our Success Depends on Our Distribution Facilities

Our ability to meet customer expectations, manage inventory, complete sales, and achieve objectives for operating efficiencies depends on the proper operation of our existing distribution facilities, as well as the facilities of our third-party logistics companies, the development or expansion of additional distribution capabilities and services, such as the transition of value-added services functions from contract manufacturers to our distribution centers, and the timely performance of services by third parties, including those involved in shipping product to and from our distribution facilities. In the United States, we rely primarily on our distribution centers in Portland, Oregon and Robards, Kentucky; in Canada, we rely primarily on our distribution facility in London, Ontario; in Europe, we rely primarily on our distribution center in Cambrai, France; in Japan, Korea, and China, we rely primarily on third-party logistics companies near Tokyo, Seoul, and Shanghai, respectively.

43

Our primary distribution facilities in the United States, France and Canada are highly automated, which means that their operations are complicated and may be subject to a number of risks related to computer viruses, the proper operation of software and hardware, electronic or power interruptions, and other system failures. Risks associated with upgrading or expanding these facilities may significantly disrupt or increase the cost of our operations. For example, in addition to supporting our traditional wholesale business, our existing distribution facilities have been modified to enable them to also support our DTC businesses in the United States, Canada and Europe. Failure to successfully maintain and update these modifications could disrupt our wholesale and e-commerce shipments and may have a material adverse effect on our financial condition, results of operations or cash flows.

The fixed costs associated with owning, operating and maintaining these large, highly automated 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. This has occurred in recent years in Europe, where our distribution center is underutilized. This fixed cost structure may make it difficult for us to achieve or maintain profitability if sales volumes decline for an extended period of time and could have a material adverse effect on our financial condition, results of operations or cash flows.

Our distribution facilities may also be interrupted by natural disasters, such as earthquakes, floods, damaging winds, or fires. We maintain business interruption insurance, but it may not adequately protect us from the adverse effect that may be caused by significant disruptions in our distribution facilities.

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 May Be Adversely Affected by Labor Disruptions, Changes in Labor Laws and Other Labor Issues

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. Labor disputes at contract manufacturers where our goods are produced, shipping ports, transportation carriers, retail stores, or distribution centers create significant risks for our business, particularly if these disputes result in work slowdowns, lockouts, strikes, or other disruptions during our peak manufacturing, shipping and selling seasons. For example, work slowdowns and stoppages at ports on the west coast of the United States have, in the past, resulted in product delays and increased costs. Labor disruptions may have a material adverse effect on our business, potentially resulting in canceled orders by customers, unanticipated inventory accumulation and reduced revenues and earnings.

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 persons in the work force of the markets in which our operations are located, unemployment levels within those markets, prevailing and minimum wage rates, changing demographics, health and other insurance costs, and adoption of new or revised employment and labor laws and regulations. If we are unable to locate, attract or retain qualified employees, our ability to source, distribute and sell products in a timely and cost-effective manner may be negatively affected, which could have a material adverse effect on our financial condition, results of operations or cash flows.

We Depend on Key Suppliers

Some of the materials that we use may be available from only one source or a very limited number of sources. For example, some specialty fabrics are manufactured to our specification by one source or a few sources, and a single vendor supplies the majority of the zippers used in our products. From time to time, we have difficulty satisfying our raw material and finished goods requirements. Although we believe that we can identify and qualify additional contract manufacturers to produce these 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, which may have a material adverse effect on our financial condition, results of operations or cash flows.

We Depend on Key Personnel

Our future success will depend in part on the continued service of key personnel and our ability to attract, retain and develop key managers, designers, sales and information technology professionals, and others. 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.

44

Our Business Is Affected by Seasonality

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, the majority, and sometimes all, of our operating profits are generated in the second half of the year. The expansion of our DTC businesses has increased the proportion of sales and profits that we generate in the fourth calendar quarter. This seasonality, along with other factors that are beyond our control and that are discussed elsewhere in this section, may adversely affect our business and cause our results of operations to fluctuate. As a result, our profitability may be materially affected if management is not able to timely adjust expenses in reaction to adverse events such as unfavorable weather, weak consumer spending patterns or unanticipated levels of order cancellations. Results of operations in any period should not be considered indicative of the results to be expected for any future period.

Our Products Are Subject to Increasing Product Regulations and We Face Risks of Product Liability and 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 and, as a result, could have a material adverse effect on our financial condition, results of operations or cash flows.

Our products are 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, our financial condition, results of operations, or cash flows. 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, which may also have a material adverse effect on our financial condition, results of operations or cash flows.

Our Common Stock Price May Be Volatile

The price of our common stock has fluctuated substantially since our initial public offering. Our common stock is traded on the NASDAQ Global Select Market. Factors such as general market conditions, actions by institutional investors to rapidly accumulate or divest of a substantial number of our shares, fluctuations in financial results, variances from financial market expectations, changes in earnings estimates or recommendations by analysts, or announcements by us or our competitors may cause the market price of our common stock to fluctuate, perhaps substantially.

Insiders Control a Majority of Our Common Stock and May Sell Shares

Five related shareholders, Gertrude Boyle, Sarah Bany, Timothy Boyle, Joseph Boyle, and Molly Boyle, have historically controlled a majority of our common stock. As a result, if acting together, they can effectively control matters requiring shareholder approval without the cooperation of other shareholders. Shares held by these shareholders 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.

45

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

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (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

⁽¹⁾Our Board of Directors has authorized the repurchase of $700,000,000 of our common stock. As of June 30, 2018, we had repurchased 22,158,325 shares under this program at an aggregate purchase price of approximately $602,169,000. Shares of our common stock may be purchased in the open market or through privately negotiated transactions, subject to market conditions. The repurchase program does not obligate us to acquire any specific number of shares or to acquire shares over any specified period of time.

46

Item 6.    EXHIBITS

(a) Exhibits

3.1	Second Amendment to Third Restated Articles of Incorporation
31.1	Rule 13a-14(a) Certification of Timothy P. Boyle, President and Chief Executive Officer
31.2	Rule 13a-14(a) Certification of Jim A. Swanson, Senior Vice President, Chief Financial Officer
32.1	Section 1350 Certification of Timothy P. Boyle, President and Chief Executive Officer
32.2	Section 1350 Certification of Jim A. Swanson, Senior Vice President, Chief Financial Officer
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

47

SIGNATURES

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

	COLUMBIA SPORTSWEAR COMPANY
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)

48

EX-3.1

EXHIBIT 3.1

SECOND AMENDMENT

TO

THIRD RESTATED ARTICLES OF INCORPORATION

OF

COLUMBIA SPORTSWEAR COMPANY

Pursuant to ORS 60.447, Columbia Sportswear Company (the “Corporation”) adopts the following Second Amendment to its Third Restated Articles of Incorporation:

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:

“The Corporation is authorized to issue shares of two classes of stock: 250,000,000 shares of Common Stock and 10,000,000 shares of Preferred Stock.”

4. Section D is added to Article II of the Third Restated Articles of Incorporation and reads in its entirety as follows:

“Except as may be specifically designated by the Board of Directors, no holder of shares of the Corporation of any class, as such, shall have the preemptive right to subscribe for or to purchase any shares of any class of the corporation or any other securities of the corporation, including any warrant, right or option to any share or other security, whether such share or security of such class are now or hereafter authorized.”

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:

Peter J. Bragdon

Executive Vice President, Chief Administrative Officer and General Counsel

14375 Northwest Science Park Drive, Portland, Oregon 97229

Dated: June 11, 2018

I declare as an authorized signer, under penalty of perjury, that this document does not fraudulently conceal, fraudulently obscure, fraudulently alter or otherwise misrepresent the identity of the person or any officers, directors, employees or agents of the corporation. This filing has been examined by me and is, to the best of my knowledge and belief true, correct, and complete. Making false statements in this document is against the law and may be penalized by fines, imprisonment or both.

Columbia Sportswear Company

By:    /S/ PETER J. BRAGDON    

Peter J. Bragdon, Executive Vice President,

Chief Administrative Officer and General Counsel

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Timothy P. Boyle, certify that:

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:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

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):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2018

/s/TIMOTHY P. BOYLE

Timothy P. Boyle

President, Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Jim A. Swanson, certify that:

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:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

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):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2018

/s/ JIM A. SWANSON

Jim A. Swanson

Senior Vice President, Chief Financial Officer

EX-32.1

EXHIBIT 32.1

SECTION 1350 CERTIFICATION

In connection with the Quarterly Report of Columbia Sportswear Company (the “Company”) on Form 10-Q for the period ended June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Form 10-Q”), I, Timothy P. Boyle, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(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.

Dated: August 2, 2018

/s/TIMOTHY P. BOYLE

Timothy P. Boyle

President, Chief Executive Officer

Columbia Sportswear Company

EX-32.2

EXHIBIT 32.2

SECTION 1350 CERTIFICATION

In connection with the Quarterly Report of Columbia Sportswear Company (the “Company”) on Form 10-Q for the period ended June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Form 10-Q”), I, Jim A. Swanson, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(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.

Dated: August 2, 2018

/s/ JIM A. SWANSON

Jim A. Swanson

Senior Vice President, Chief Financial Officer

Columbia Sportswear Company

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 20, 2018
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Entity Registrant Name	COLUMBIA SPORTSWEAR CO
Entity Central Index Key	0001050797
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		69,960,922

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Current Assets:
Cash and cash equivalents	$ 510,656	$ 673,166	$ 620,639
Short-term investments	264,014	94,983	1,591
Accounts receivable, net of allowance of $6,887, $9,043 and $8,666, respectively	238,675	364,862	181,119
Inventories	570,473	457,927	559,544
Prepaid expenses and other current assets	76,399	58,559	42,053
Total current assets	1,660,217	1,649,497	1,404,946
Property, plant and equipment, at cost, net of accumulated depreciation of $472,447, $455,811 and $435,625, respectively	280,726	281,394	286,006
Intangible assets, net (Note 5)	128,065	129,555	131,045
Goodwill	68,594	68,594	68,594
Deferred income taxes	70,351	56,804	94,514
Other non-current assets	38,997	27,058	26,095
Total assets	2,246,950	2,212,902	2,011,200
Current Liabilities:
Accounts payable	290,812	252,301	264,881
Accrued liabilities (Note 6)	191,511	182,228	114,807
Income taxes payable	4,000	19,107	3,245
Total current liabilities	486,323	453,636	382,933
Other long-term liabilities	45,412	48,735	44,809
Income taxes payable, noncurrent	60,827	58,104	11,102
Deferred income taxes	13	168	156
Total liabilities	592,575	560,643	439,000
Commitments and contingencies (Note 12)
Equity:
Preferred stock; 10,000 shares authorized; none issued and outstanding	0	0	0
Common stock (no par value); 250,000 shares authorized; 69,988, 69,995, and 69,686 issued and outstanding, respectively (Note 9)	23,162	45,829	31,045
Retained earnings	1,623,612	1,585,009	1,529,061
Accumulated other comprehensive loss (Note 8)	(6,374)	(8,887)	(13,296)
Total shareholders' equity	1,640,400	1,621,951	1,546,810
Non-controlling interest (Note 4)	13,975	30,308	25,390
Total equity	1,654,375	1,652,259	1,572,200
Total liabilities and equity	$ 2,246,950	$ 2,212,902	$ 2,011,200

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Allowance for doubtful accounts	$ 6,889	$ 9,043	$ 8,666
Accumulated depreciation for property, plant and equipment	$ 472,447	$ 455,811	$ 435,625
Preferred stock, shares authorized (in shares)	10,000	10,000	10,000
Preferred stock, shares issued (in shares)	0	0	0
Preferred stock, shares outstanding (in shares)	0	0	0
Common stock, no par value (in dollars per share)	$ 0	$ 0	$ 0
Common stock, shares authorized (in shares)	250,000	125,000	125,000
Common stock, shares issued (in shares)	69,988	69,995	69,686
Common stock, shares outstanding (in shares)	69,988	69,995	69,686

XML

Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net sales	$ 481,619	$ 398,904	$ 1,088,927	$ 942,697
Cost of sales	252,998	218,042	560,868	503,368
Gross profit	228,621	180,862	528,059	439,329
Selling, general and administrative expenses	222,192	200,598	465,560	413,413
Net licensing income	481,619	398,904	1,088,927	942,697
Income from operations	9,749	(17,285)	69,070	30,720
Interest income, net	2,928	1,250	5,224	2,205
Interest expense on note payable to related party	0	(180)	0	(429)
Other non-operating expense	(96)	360	(364)	307
Income before income tax	12,581	(15,855)	73,930	32,803
Income tax expense	(2,086)	4,539	(14,706)	(5,234)
Net income	10,495	(11,316)	59,224	27,569
Net income attributable to non-controlling interest	758	219	4,380	3,098
Net income attributable to Columbia Sportswear Company	$ 9,737	$ (11,535)	$ 54,844	$ 24,471
Earnings per share (Note 9):
Basic (in dollars per share)	$ 0.14	$ (0.17)	$ 0.78	$ 0.35
Diluted (in dollars per share)	0.14	(0.17)	0.77	0.35
Cash dividends per share	$ 0.22	$ 0.18	$ 0.44	$ 0.36
Weighted average shares outstanding (Note 9):
Basic (in shares)	70,021	69,672	70,050	69,639
Diluted (in shares)	70,748	69,672	70,824	70,367
License [Member]
Net licensing income	$ 3,320	$ 2,451	$ 6,571	$ 4,804

XML

Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net income	$ 10,495	$ (11,316)	$ 59,224	$ 27,569
Other comprehensive income:
Unrealized holding gains on available-for-sale securities	0	(4)	4	0
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	12,786	(10,295)	62,871	38,491
Comprehensive income attributable to non-controlling interest	474	1,644	4,999	4,699
Comprehensive income attributable to Columbia Sportswear Company	$ 12,312	$ (11,939)	$ 57,872	$ 33,792

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Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Unrealized losses on derivative transactions tax effects	$ (6,540)	$ 3,361	$ (4,974)	$ 4,241
Foreign currency translation adjustments tax effects	$ 275	$ (93)	$ 1,819	$ (2)

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Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 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 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)
Proceeds from Sale, Maturity and Collection 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	0	2,774
Repayments on credit facilities	0	(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)
Payments for Repurchase of Common Stock	(40,106)	(35,542)
Cash dividends paid	(30,856)	(25,046)
Repayments of Related Party Debt	0	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	0	501
Supplemental disclosures of non-cash investing activities:
Capital expenditures incurred but not yet paid	$ 4,009	$ 9,191

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Basis Of Presentation And Organization

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis Of Presentation And Organization

BASIS OF PRESENTATION AND ORGANIZATION

The accompanying unaudited condensed consolidated financial statements have been prepared by the management of Columbia Sportswear Company (together with its wholly owned subsidiaries and entities in which it maintains a controlling financial interest, the "Company") and in the opinion of management include all normal recurring material adjustments necessary to present fairly the Company's financial position as of June 30, 2018 and 2017, the results of operations for the three and six months endedJune 30, 2018 and 2017, and cash flows for the six months endedJune 30, 2018 and 2017. The December 31, 2017 financial information was derived from the Company's audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. A significant part of the Company's business is of a seasonal nature; therefore, results of operations for the three and six months endedJune 30, 2018 are not necessarily indicative of results to be expected for other quarterly periods or for the full year.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The Company, however, believes that the disclosures contained in this report comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934 for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Columbia Sportswear Company, its wholly owned subsidiaries and entities in which it maintains a controlling financial interest. 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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates and assumptions. Some of these more significant estimates relate to revenue recognition, including sales returns and miscellaneous claims from customers, allowance for doubtful accounts, excess, slow-moving and closeout inventories, product warranty, long-lived and intangible assets, goodwill, income taxes, and stock-based compensation.

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Summary Of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except as disclosed below and in Note 3, pertaining to our adoption of new accounting pronouncements, there have been no significant changes to the Company's significant accounting policies as described in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Recently Adopted Accounting Pronouncements:

On January 1, 2018, the Company adopted Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that superseded the previous revenue recognition guidance (Topic 605). The updated guidance, and subsequent clarifications, collectively referred to as ASC 606, require an entity to recognize revenue when it transfers control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the guidance requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted this standard, utilizing the modified retrospective approach, with the cumulative effect of initially applying the new standard recognized in retained earnings. Accordingly, comparative prior period information has not been restated and continues to be reported under the accounting standards in effect for those periods.

In addition, the adoption of ASC 606 had the following effects: (1) fees paid to or retained by third parties in conjunction with certain concession-based retail arrangements in our Latin America and Asia Pacific ("LAAP") region, historically comprising approximately 2% of net sales, are now recognized as a component of selling, general and administrative ("SG&A") expenses; (2) wholesale sales returns reserves, estimated chargebacks and markdowns, and other provisions for customer refunds are now presented as accrued liabilities rather than netted within accounts receivable; and (3) the estimated cost of inventory associated with sales returns reserves are now presented within other current assets rather than inventories. The Company expects the timing of revenue recognition for its significant revenue streams to remain substantially unchanged, with no material effect on net sales. See the table below for the effect of the adoption of the standard on our Condensed Consolidated Balance Sheets as of January 1, 2018.

On January 1, 2018, the Company adopted ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory, which requires the recognition of the income tax effects of an intra-entity transfer of an asset, other than inventory, when the transfer occurs, eliminating an exception under previous GAAP in which the tax effects of intra-entity asset transfers were deferred until the transferred asset is sold to a third party or otherwise recovered through use. Income tax effects of intra-entity transfers of inventory will continue to be deferred until the inventory has been sold to a third party. The Company adopted this standard effective January 1, 2018 by applying the required modified retrospective approach with a cumulative-effect adjustment to retained earnings of certain previously deferred tax benefits. The Company anticipates the adoption of this standard will result in increased volatility in its future effective income tax rate. See the table below for the effect of the adoption of the standard on our Condensed Consolidated Balance Sheets as of January 1, 2018.

On January 1, 2018, the Company early-adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which simplifies the application of hedge accounting guidance to better portray the economic results of risk management activities in the financial statements. The guidance aligns the recognition and presentation of the effects of hedging instruments and hedged items in the financial statements, and includes certain targeted improvements to ease the application of the assessment of hedge effectiveness. The Company utilized the required modified retrospective transition method with the cumulative effect of initially applying the new standard recognized in retained earnings. See the table below for the effect of the adoption of the standard on our Condensed Consolidated Balance Sheets as of January 1, 2018.

On January 1, 2018, the Company adopted ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which requires equity investments that are not accounted for under the equity method of accounting to be measured at fair value with changes recognized in net income and also updates certain presentation and disclosure requirements. The adoption of this standard did not have a material effect on the Company's financial position, results of operations or cash flows.

The following table presents the effect of the adoption of ASC 606, ASU 2016-16 and ASU 2017-12 on our Condensed Consolidated Balance Sheets as of January 1, 2018 (in thousands):

	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

In accordance with the requirements of ASC 606, the effects of adoption of this standard on our Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations were as follows (in thousands):

	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

Recent Accounting Pronouncements Not Yet Adopted

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for most leases previously classified as operating leases. Subsequently, the FASB has issued amendments to clarify the codification or to correct unintended application of the new guidance. The Company will adopt the new standard on January 1, 2019. The new guidance is required to be applied using a modified retrospective approach at the beginning of the earliest period presented with optional practical expedients, or using an approved alternative approach at the beginning of the period in which it is adopted, rather than at the beginning of the earliest comparative period presented.

The Company is currently evaluating the impact of this guidance, including reviewing the standard's provisions, gathering and analyzing data to support further evaluation of real estate and non-real estate leases, identifying arrangements that may contain embedded leases, and evaluating the transition methodology to apply upon adoption. The Company is also evaluating the impact of the new accounting standard on the Company's financial statement disclosures, systems, processes and controls. Based on these efforts, the Company expects the adoption will result in a material increase in the assets and liabilities on its Consolidated Balance Sheets and is not expected to have a material effect on the results of operations or cash flows.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The pronouncement changes the impairment model for most financial assets and will require the use of an "expected loss" model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. This standard is effective beginning in the first quarter of 2020. The adoption of ASU 2016-13 is not expected to have a material effect on the Company's financial position, results of operations or cash flows.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. Under this guidance, if the carrying amount of a reporting unit exceeds its estimated fair value, an impairment charge shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. This standard is effective beginning in the first quarter of 2019, with early adoption permitted. The Company is evaluating the impact and expects the adoption of ASU 2017-04 to affect the amount and timing of future goodwill impairment charges, if any.

In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-BasedPayment Accounting, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. As a result, most of the guidance in ASC 718 associated with employee share-based payments, including most requirements related to classification and measurement, applies to nonemployee share-based payment arrangements. This standard is effective beginning in the first quarter of 2019, with early adoption permitted. The Company is currently evaluating the impact this accounting standard will have on the Company's financial position, results of operations or cash flows.

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Revenues

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Revenues

REVENUES

Disaggregated Revenue

As disclosed below in Note 10, the Company has aggregated its operating segments into four geographic segments: (1) United States, (2) LAAP, (3) Europe, Middle East and Africa ("EMEA") and (4) Canada, which are reflective of the Company's internal organization, management and oversight structure. The following tables disaggregate our operating segment revenue by product category and sales channel (in thousands), which we believe provides a meaningful depiction how the nature, timing, and uncertainty of revenues are affected by economic factors:

	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

Accounting Policies

Revenues are recognized when our performance obligations are satisfied as evidenced by transfer of control of promised goods to our customers, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods or services. Within our 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 our direct-to-consumer ("DTC") channel, control generally transfers to the customer at the time of sale within our retail stores and concession-based arrangements and upon shipment to the customer with respect to e-commerce transactions.

The amount of consideration we receive and revenue we recognize 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 returns and claims based on historical rates as well as events and circumstances that indicate changes to historical rates of product returns and claims. 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.

Licensing income, which is presented separately as Net licensing income on the Condensed 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 our licensees.

We expense 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.

We treat 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 are recorded as SG&A expenses, and the direct costs associated with shipping goods to customers and consumers are recorded as costs of goods sold. Shipping and handling fees billed to customers are recorded as revenue.

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.

Performance Obligations

For the three and six months ended June 30, 2018, revenue recognized from performance obligations related to prior periods was not material. Revenue expected to be recognized in any future period related to remaining performance obligations is not material.

Contract Balances

As of June 30, 2018, contract liabilities recorded on the Condensed Consolidated Balance Sheets, which consisted of obligations associated with our gift card and customer loyalty programs, were not material.

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Non-Controlling Interest

6 Months Ended

Jun. 30, 2018

Noncontrolling Interest [Abstract]

Non-controlling Interest

NON-CONTROLLING INTEREST

The Company owns a 60% controlling interest in a joint venture formed with Swire Resources Limited ("Swire") to support the development and operation of the Company's business in China. The accounts of the joint venture are included in the Condensed Consolidated Financial Statements. Swire's share of net income from the joint venture is included in Net income attributable to non-controlling interest in the Condensed Consolidated Statements of Operations for the three and six months endedJune 30,2018 and 2017. The 40% non-controlling equity interest in this entity is included in total equity as Non-controlling interest in the Condensed Consolidated Balance Sheets as of June 30, 2018 and 2017, and December 31, 2017.

The following table presents the changes in Columbia Sportswear Company shareholders' equity and non-controlling interest for the six months ended June 30, 2018 (in thousands, except per share amounts):

	Columbia Sportswear Company			Non-Controlling Interest			Total
Balance at December 31, 2017	$	1,621,951		$	30,308		$	1,652,259
Net income	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

The following table presents the changes in Columbia Sportswear Company shareholders' equity and non-controlling interest for the six months ended June 30, 2017 (in thousands, except per share amounts):

	Columbia Sportswear Company			Non-Controlling Interest			Total
Balance at December 31, 2016	$	1,560,820		$	20,691		$	1,581,511
Net income	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

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Intangible Assets, Net and Goodwill

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net and Goodwill

INTANGIBLE ASSETS, NET

Intangible assets that are determined to have finite lives include patents, purchased technology and customer relationships and are amortized over their estimated useful lives, which range from approximately 3 to 10 years, and are measured for impairment only when events or circumstances indicate the carrying value may be impaired. Goodwill and intangible assets with indefinite useful lives, including trademarks and trade names, are not amortized but are evaluated for impairment on an annual basis during the fourth quarter of our fiscal year or earlier if events or circumstances indicate the carrying value may be impaired.

Intangible Assets

The following table summarizes the Company's identifiable intangible assets (in thousands):

	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

Amortization expense for intangible assets subject to amortization was $745,000 and $1,106,000 for the three months ended June 30,2018 and 2017, respectively, and was $1,490,000 and $2,393,000 for the six months endedJune 30, 2018 and 2017, respectively.

Annual amortization expense is estimated to be as follows for the years 2018 through 2022 (in thousands):

2018	$	2,980
2019	2,980
2020	2,537
2021	1,650
2022	1,650

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Product Warranty

6 Months Ended

Jun. 30, 2018

Product Warranties Disclosures [Abstract]

Product Warranty

PRODUCT WARRANTY

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

A reconciliation of product warranties is as follows (in thousands):

	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

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2018

Share-based Compensation [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

The Company's Stock Incentive Plan (the "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 majority of all stock options and restricted stock unit grants outstanding under the Plan were granted in the first quarter of each fiscal year. Stock compensation is recognized based on an estimated number of awards that are expected to vest.

Stock-based compensation expense consisted of the following (in thousands):

	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

Stock Options

The Company estimates the fair value of stock options using the Black-Scholes model. Key inputs and assumptions used to estimate the fair value of stock options 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 following table presents the weighted average assumptions for stock options granted in the periods:

	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

During the six months endedJune 30, 2018 and 2017, the Company granted a total of 394,098 and 496,384 stock options, respectively. At June 30, 2018, unrecognized costs related to outstanding stock options totaled approximately $11,184,000, before any related tax benefit. The unrecognized costs related to stock options are amortized over the related vesting period using the straight-line attribution method. Unrecognized costs related to stock options at June 30, 2018 are expected to be recognized over a weighted average period of 2.71 years.

Restricted Stock Units

The Company estimates the fair value of service-based and performance-based restricted stock units using the Black-Scholes model. Key inputs and assumptions used to estimate the fair value of restricted stock units include the vesting period, expected annual dividend yield and closing price of the Company's common stock on the date of grant.

The following table presents the weighted average assumptions for restricted stock units granted in the periods:

	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

During the six months endedJune 30, 2018 and 2017, the Company granted 176,331 and 245,953 restricted stock units, respectively. At June 30, 2018, unrecognized costs related to outstanding restricted stock units totaled approximately $20,443,000, 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 June 30, 2018 are expected to be recognized over a weighted average period of 2.69 years.

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Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income

ACCUMULATED OTHER COMPREHENSIVE LOSS

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

The following table sets forth the changes in accumulated other comprehensive loss attributable to Columbia Sportswear Company, net of tax, for the three months ended June 30, 2018 (in thousands):

	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	)

The following table sets forth the changes in accumulated other comprehensive loss attributable to Columbia Sportswear Company, net of tax, for the three months ended June 30,2017 (in thousands):

	Unrealized losses on available-for-sale securities			Unrealized holding gains (losses) on derivative transactions			Foreign currency translation adjustments			Total
Balance at March 31, 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	)

The following table sets forth the changes in accumulated other comprehensive loss attributable to Columbia Sportswear Company, net of tax, for the six months ended June 30, 2018 (in thousands):

	Unrealized gains (losses) on available-for-sale securities			Unrealized holding gains (losses) on derivative transactions			Foreign currency translation adjustments			Total
Balance at December 31, 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	)

The following table sets forth the changes in accumulated other comprehensive loss attributable to Columbia Sportswear Company, net of tax, for the six months ended June 30, 2017 (in thousands):

	Unrealized gains (losses) on available-for-sale securities			Unrealized holding gains (losses) on derivative transactions			Foreign currency translation adjustments			Total
Balance at December 31, 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	)

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Earnings Per Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share

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 common shares used in the denominator for computing basic and diluted EPS is as follows (in thousands, except per share amounts):

	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

Stock options and service-based restricted stock units representing 378,360 and 2,641,676 shares of common stock for the three months ended June 30,2018 and 2017, respectively, were outstanding but were excluded from the computation of diluted EPS because their effect would be anti-dilutive as a result of applying the treasury stock method. Stock options and service-based restricted stock units representing 290,673 and 862,559 shares of common stock for the six months ended June 30, 2018 and 2017, respectively, were outstanding but were excluded from the computation of diluted EPS because their effect would be anti-dilutive as a result of applying the treasury stock method. In addition, performance-based restricted stock units representing 21,164 and 50,403 shares of common stock for the three months ended June 30,2018 and 2017, respectively, and 21,164 and 46,485 shares of common stock for the six months ended June 30, 2018 and 2017, respectively, were outstanding but were excluded from the computation of diluted EPS because these shares were subject to performance conditions that had not been met.

Common Stock Repurchase Plan

Since the inception of the Company's stock repurchase plan in 2004 through June 30, 2018, the Company's Board of Directors has authorized the repurchase of $700,000,000 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. 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. As of June 30, 2018, the Company had repurchased 22,158,325 shares under this program at an aggregate purchase price of approximately $602,169,000. During the three and six months endedJune 30, 2018, the Company repurchased 264,793 and 500,290 shares of the Company's common stock at an aggregate purchase price of $22,007,000 and $40,106,000, respectively. During the three and six months endedJune 30, 2017, the Company repurchased 48,943 and 665,095 shares of the Company's common stock at an aggregate purchase price of $2,542,000 and $35,542,000, respectively.

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Segment Information

6 Months Ended

Jun. 30, 2018

Segment Reporting, Measurement Disclosures [Abstract]

Segment Information

SEGMENT INFORMATION

The Company has aggregated its operating segments into four geographic segments: (1) United States, (2) LAAP, (3) EMEA and (4) 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 and active lifestyle apparel, footwear, accessories, and equipment. Intersegment net sales and intersegment profits, which are recorded at a negotiated mark-up and eliminated in consolidation, are not material. Unallocated corporate expenses consist of expenses incurred by centrally-managed departments, including global information systems, finance and legal, executive compensation, unallocated benefit program expense, and other miscellaneous costs.

The geographic distribution of the Company's Net sales and Income (loss) from operations in the Condensed Consolidated Statements of Operations are summarized in the following table (in thousands) for the three and six months endedJune 30, 2018 and 2017.

	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

Concentrations

The Company had two customers that accounted for approximately 11.3% and 10.6%, respectively, of Accounts receivable, net of allowance on the Condensed Consolidated Balance Sheets as of June 30, 2018. The Company had two customers that accounted for approximately 12.6% and 10.9%, respectively, of Accounts receivable, net of allowance as of June 30, 2017. The Company had one customer that accounted for approximately 12.3% of Accounts receivable, net of allowance as of December 31, 2017. No single customer accounted for 10% or more of Net sales in the Condensed Consolidated Statements of Operations for the three or six months ended June 30, 2018 or 2017, or for the year ended December 31, 2017.

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Financial Instruments And Risk Management

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedges, Assets [Abstract]

Financial Instruments And Risk Management

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 U.S. dollar inventory purchases. The Company's prAna subsidiary uses U.S. dollars as its functional currency and is exposed to anticipated Canadian dollar denominated sales. The Company manages these risks by using currency forward and option 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, forward points are excluded from the determination of hedge effectiveness and are included in current period cost of sales for hedges of anticipated U.S. dollar inventory purchases and in net sales for hedges of anticipated Canadian dollar sales on a straight-line basis over the life of the contract. In each accounting period, any difference between the change in fair value of the forward points and the amount recognized in earnings on a straight-line basis is recognized in Other comprehensive income in the Condensed Consolidated Statements of Comprehensive Income.  For option contracts, the change in fair value attributable to changes in time value are excluded from the assessment of hedge effectiveness and included in current period Cost of sales in the Condensed Consolidated Statements of Operations. Hedge ineffectiveness was not material during the three and six months endedJune 30, 2018 and 2017.

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 U.S. 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, 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 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):

	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

At June 30, 2018, approximately $2,594,000 of deferred net losses on both outstanding and matured derivatives accumulated in Other comprehensive income 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 income. Actual amounts ultimately reclassified to Net income in the Condensed Consolidated Statements of Comprehensive Income are dependent on U.S. dollar exchange rates in effect against the euro, renminbi, Canadian dollar, and yen when outstanding derivative contracts mature.

At June 30, 2018, 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 less than $5,000,000 at June 30, 2018. All of the Company's derivative counterparties have investment grade credit ratings. 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 (in thousands):

	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

The following table presents the statement of operations effect and classification of derivative instruments (in thousands):

	Statement of Operations Classification	Three Months Ended June 30,						Six Months Ended June 30,
		2018			2017			2018			2017
Currency Forward and Option Contracts:
Derivative instruments designated as cash flow hedges:
Gain (loss) recognized in other comprehensive income or loss, net of tax	—	$	20,859		$	(5,537	)	$	15,627		$	(6,975	)
Gain reclassified from accumulated other comprehensive income or loss to income for the effective portion	Net sales	19			—			24			144
Gain (loss) reclassified from accumulated other comprehensive income or loss to income for the effective portion	Cost of sales	(1,398		)	897			(3,604		)	951
Gain recognized in income for amount excluded from effectiveness testing and for the ineffective portion	Net sales	6			2			12			5
Gain recognized in income for amount excluded from effectiveness testing and for the ineffective portion	Cost of sales	1,896			492			3,821			1,286
Derivative instruments not designated as cash flow hedges:
Gain (loss) recognized in income	Other non-operating expense	2,836			(1,723		)	2,234			(3,411		)

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Commitments And Contingencies

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

COMMITMENTS AND CONTINGENCIES

Inventory Purchase Obligations

Inventory purchase obligations consist of open production purchase orders and other commitments for raw materials and sourced apparel, footwear, accessories, and equipment. At June 30, 2018, inventory purchase obligations were $424,968,000.

Litigation

The Company is a party to various legal claims, actions and complaints from time to time. Although the ultimate resolution of legal proceedings cannot be predicted with certainty, management believes that disposition of these matters will not have a material adverse effect on the Company's consolidated financial statements.

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Fair Value Measures

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measures

FAIR VALUE MEASURES

Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

Level 1 — observable inputs such as quoted prices for identical assets or liabilities in active liquid markets;

Level 2 — inputs, other than the quoted market prices in active markets, that are observable, either directly or indirectly; or observable market prices in markets with insufficient volume or infrequent transactions; and

Level 3 — unobservable inputs for which there is little or no market data available, that require the reporting entity to develop its own assumptions.

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 are as follows (in thousands):

	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

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

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 are as follows (in thousands):

	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

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

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 are as follows (in thousands):

	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

Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from inputs, other than quoted market prices in active markets, which are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions.

Non-recurring Fair Value Measurements

There were no material assets and liabilities measured at fair value on a nonrecurring basis as of June 30, 2018, December 31, 2017 or June 30, 2017.

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Related Party Transactions

6 Months Ended

Jun. 30, 2018

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

The Company owns a 60% controlling interest in a joint venture formed with Swire, which is a related party. The joint venture arrangement involves Transition Services Agreements ("TSAs") with Swire, under which Swire provides administrative and information technology services to the joint venture. The Company continues to reduce its costs under the TSAs as it internalizes the back-office functions and related personnel, including the transition of the joint venture's systems to the Company's ERP platform in the second quarter of 2017. The joint venture incurred service fees, valued under the TSAs at Swire's cost, of $73,000 and $329,000 during the three months ended June 30, 2018 and 2017, respectively, and $144,000 and $845,000 during the six months ended June 30, 2018 and 2017, respectively. These fees are included in SG&A expenses in the Condensed Consolidated Statements of Operations.

As of June 30, 2018 and 2017, and December 31, 2017, net payables to Swire for service fees, interest expense and miscellaneous expenses totaled $83,000, $340,000 and $89,000, respectively, and were included in Accounts payable in the Condensed Consolidated Balance Sheets.

In addition to the transactions described above, Swire is also a third-party distributor of the Company's brands in certain regions outside of mainland China and purchases products from the Company under the Company's standard third-party distributor terms and pricing.

In April 2018, the Company announced its intent to buy out the remaining 40% non-controlling interest in the joint venture under the terms of the initial agreement. The buyout is subject to various terms and conditions, including regulatory approval in China, and is expected to be completed in early 2019.

On June 14, 2018, the joint venture declared a cash dividend of RMB 341,347,000 ($53,330,000 USD) anticipated to be paid by the end of the third quarter of 2018 to stockholders of record as of June 14, 2018. The Company's share of this dividend will be $31,998,000 and is eliminated in consolidation. As of June 30, 2018, the Company recorded an Accrued liability for the dividend payable to Swire and a corresponding reduction to Non-controlling interest of $21,332,000 in the Condensed Consolidated Balance Sheets.

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Summary Of Significant Accounting Policies Summary Of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements

In accordance with the requirements of ASC 606, the effects of adoption of this standard on our Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations were as follows (in thousands):

	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

The following table presents the effect of the adoption of ASC 606, ASU 2016-16 and ASU 2017-12 on our Condensed Consolidated Balance Sheets as of January 1, 2018 (in thousands):

	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

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Revenues (Tables)

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The following tables disaggregate our operating segment revenue by product category and sales channel (in thousands), which we believe provides a meaningful depiction how the nature, timing, and uncertainty of revenues are affected by economic factors:

	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

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Non-Controlling Interest (Tables)

6 Months Ended

Jun. 30, 2018

Noncontrolling Interest [Abstract]

Schedule of Equity

The following table presents the changes in Columbia Sportswear Company shareholders' equity and non-controlling interest for the six months ended June 30, 2018 (in thousands, except per share amounts):

	Columbia Sportswear Company			Non-Controlling Interest			Total
Balance at December 31, 2017	$	1,621,951		$	30,308		$	1,652,259
Net income	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

The following table presents the changes in Columbia Sportswear Company shareholders' equity and non-controlling interest for the six months ended June 30, 2017 (in thousands, except per share amounts):

	Columbia Sportswear Company			Non-Controlling Interest			Total
Balance at December 31, 2016	$	1,560,820		$	20,691		$	1,581,511
Net income	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

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Intangible Assets, Net and Goodwill (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Summary Of Identifiable Intangible Assets

The following table summarizes the Company's identifiable intangible assets (in thousands):

	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

Schedule of finite lived intangible assets future amortization expense

Annual amortization expense is estimated to be as follows for the years 2018 through 2022 (in thousands):

2018	$	2,980
2019	2,980
2020	2,537
2021	1,650
2022	1,650

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Product Warranty (Tables)

6 Months Ended

Jun. 30, 2018

Product Warranties Disclosures [Abstract]

Reconciliation Of Product Warranties

A reconciliation of product warranties is as follows (in thousands):

	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

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

Share-based Compensation [Abstract]

Schedule Of Stock-Based Compensation Expense

Stock-based compensation expense consisted of the following (in thousands):

	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

Schedule Of Weighted Average Assumptions For Employee Stock Options

The following table presents the weighted average assumptions for stock options granted in the periods:

	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

Schedule Of Weighted Average Assumptions For Restricted Stock Units

The following table presents the weighted average assumptions for restricted stock units granted in the periods:

	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

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Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income, Net Of Related Tax Effects

The following table sets forth the changes in accumulated other comprehensive loss attributable to Columbia Sportswear Company, net of tax, for the three months ended June 30, 2018 (in thousands):

	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	)

The following table sets forth the changes in accumulated other comprehensive loss attributable to Columbia Sportswear Company, net of tax, for the three months ended June 30,2017 (in thousands):

	Unrealized losses on available-for-sale securities			Unrealized holding gains (losses) on derivative transactions			Foreign currency translation adjustments			Total
Balance at March 31, 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	)

The following table sets forth the changes in accumulated other comprehensive loss attributable to Columbia Sportswear Company, net of tax, for the six months ended June 30, 2018 (in thousands):

	Unrealized gains (losses) on available-for-sale securities			Unrealized holding gains (losses) on derivative transactions			Foreign currency translation adjustments			Total
Balance at December 31, 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	)

The following table sets forth the changes in accumulated other comprehensive loss attributable to Columbia Sportswear Company, net of tax, for the six months ended June 30, 2017 (in thousands):

	Unrealized gains (losses) on available-for-sale securities			Unrealized holding gains (losses) on derivative transactions			Foreign currency translation adjustments			Total
Balance at December 31, 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	)

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Reconciliation Of Common Shares Used In Denominator For Computing Basic And Diluted EPS

A reconciliation of common shares used in the denominator for computing basic and diluted EPS is as follows (in thousands, except per share amounts):

	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

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting, Measurement Disclosures [Abstract]

Schedule Of Segment Information

The geographic distribution of the Company's Net sales and Income (loss) from operations in the Condensed Consolidated Statements of Operations are summarized in the following table (in thousands) for the three and six months endedJune 30, 2018 and 2017.

	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

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Financial Instruments And Risk Management (Tables)

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedges, Assets [Abstract]

Gross Notional Amount Of Outstanding Derivative Instruments

The following table presents the gross notional amount of outstanding derivative instruments (in thousands):

	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 And Fair Value Of Derivative Instruments

The following table presents the balance sheet classification and fair value of derivative instruments (in thousands):

	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

Statement of Operations Effect and Classification of Derivative Instruments

The following table presents the statement of operations effect and classification of derivative instruments (in thousands):

	Statement of Operations Classification	Three Months Ended June 30,						Six Months Ended June 30,
		2018			2017			2018			2017
Currency Forward and Option Contracts:
Derivative instruments designated as cash flow hedges:
Gain (loss) recognized in other comprehensive income or loss, net of tax	—	$	20,859		$	(5,537	)	$	15,627		$	(6,975	)
Gain reclassified from accumulated other comprehensive income or loss to income for the effective portion	Net sales	19			—			24			144
Gain (loss) reclassified from accumulated other comprehensive income or loss to income for the effective portion	Cost of sales	(1,398		)	897			(3,604		)	951
Gain recognized in income for amount excluded from effectiveness testing and for the ineffective portion	Net sales	6			2			12			5
Gain recognized in income for amount excluded from effectiveness testing and for the ineffective portion	Cost of sales	1,896			492			3,821			1,286
Derivative instruments not designated as cash flow hedges:
Gain (loss) recognized in income	Other non-operating expense	2,836			(1,723		)	2,234			(3,411		)

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Fair Value Measures (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Assets And Liabilities Measured At Fair Value On A Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 are as follows (in thousands):

	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

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

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 are as follows (in thousands):

	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

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

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 are as follows (in thousands):

	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

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Summary Of Significant Accounting Policies Summary of Adoption of 606 (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net	$ 238,675	$ 181,119	$ 238,675	$ 181,119	$ 429,381	$ 364,862
Inventories	570,473	559,544	570,473	559,544	433,890	457,927
Prepaid expenses and other current assets	76,399	42,053	76,399	42,053	70,782	58,559
Total current assets	1,660,217	1,404,946	1,660,217	1,404,946	1,702,202	1,649,497
Total assets	2,246,950	2,011,200	2,246,950	2,011,200	2,288,572	2,212,902
Accrued liabilities	191,511	114,807	191,511	114,807	243,568	182,228
Total current liabilities	486,323	382,933	486,323	382,933	515,206	453,636
Total liabilities	592,575	439,000	592,575	439,000	622,213	560,643
Total liabilities and equity	2,246,950	2,011,200	2,246,950	2,011,200	2,288,572	2,212,902
Net sales	481,619	398,904	1,088,927	942,697
Gross profit	228,621	180,862	528,059	439,329
Selling, general and administrative expenses	222,192	$ 200,598	465,560	$ 413,413
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net	37,466		37,466		64,519
Inventories	(11,068)		(11,068)		(24,037)
Prepaid expenses and other current assets	11,068		11,068		24,037
Total current assets	37,466		37,466		64,519
Total assets	37,466		37,466		64,000
Accrued liabilities	37,466		37,466		61,340
Total current liabilities	37,466		37,466		61,570
Total liabilities	37,466		37,466		61,570
Total liabilities and equity	37,466		37,466		$ 64,000
Net sales	7,487		15,744
Gross profit	7,487		15,744
Selling, general and administrative expenses	7,487		15,744
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net	201,209		201,209			364,862
Inventories	581,541		581,541			457,927
Prepaid expenses and other current assets	65,331		65,331			58,559
Total current assets	1,622,751		1,622,751			1,649,497
Total assets	2,209,484		2,209,484			2,212,902
Accrued liabilities	154,045		154,045			182,228
Total current liabilities	448,857		448,857			453,636
Total liabilities	555,109		555,109			560,643
Total liabilities and equity	2,209,484		2,209,484			$ 2,212,902
Net sales	474,132		1,073,183
Gross profit	221,134		512,315
Selling, general and administrative expenses	$ 214,705		$ 449,816

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Summary Of Significant Accounting Policies Summary of Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	$ 238,675		$ 429,381	$ 364,862	$ 181,119
Inventories	570,473		433,890	457,927	559,544
Prepaid expenses and other current assets	76,399		70,782	58,559	42,053
Total current assets	1,660,217		1,702,202	1,649,497	1,404,946
Deferred income taxes	70,351		79,769	56,804	94,514
Total assets	2,246,950		2,288,572	2,212,902	2,011,200
Accrued Liabilities, Current	191,511		243,568	182,228	114,807
Income taxes payable	4,000		19,337	19,107	3,245
Total current liabilities	486,323		515,206	453,636	382,933
Total liabilities	592,575		622,213	560,643	439,000
Retained earnings	1,623,612		1,599,624	1,585,009	1,529,061
Accumulated other comprehensive loss	(6,374)	$ (8,949)	(9,402)	(8,887)	(13,296)	$ (12,892)
Total liabilities and equity	2,246,950		2,288,572	2,212,902	$ 2,011,200
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	201,209			364,862
Inventories	581,541			457,927
Prepaid expenses and other current assets	65,331			58,559
Total current assets	1,622,751			1,649,497
Deferred income taxes				56,804
Total assets	2,209,484			2,212,902
Accrued Liabilities, Current	154,045			182,228
Income taxes payable				19,107
Total current liabilities	448,857			453,636
Total liabilities	555,109			560,643
Retained earnings				1,585,009
Accumulated other comprehensive loss				(8,887)
Total liabilities and equity	2,209,484			$ 2,212,902
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	37,466		64,519
Inventories	(11,068)		(24,037)
Prepaid expenses and other current assets	11,068		24,037
Total current assets	37,466		64,519
Deferred income taxes			(519)
Total assets	37,466		64,000
Accrued Liabilities, Current	37,466		61,340
Income taxes payable			230
Total current liabilities	37,466		61,570
Total liabilities	37,466		61,570
Retained earnings			2,430
Accumulated other comprehensive loss			0
Total liabilities and equity	$ 37,466		64,000
Accounting Standards Update 2016-16 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net			0
Inventories			0
Prepaid expenses and other current assets			(11,814)
Total current assets			(11,814)
Deferred income taxes			23,484
Total assets			11,670
Accrued Liabilities, Current			0
Income taxes payable			0
Total current liabilities			0
Total liabilities			0
Retained earnings			11,670
Accumulated other comprehensive loss			0
Total liabilities and equity			11,670
Accounting Standards Update 2017-12 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net			0
Inventories			0
Prepaid expenses and other current assets			0
Total current assets			0
Deferred income taxes			0
Total assets			0
Accrued Liabilities, Current			0
Income taxes payable			0
Total current liabilities			0
Total liabilities			0
Retained earnings			515
Accumulated other comprehensive loss			(515)
Total liabilities and equity			$ 0

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Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue from Contract with Customer [Abstract]
Licensing revenue as a percentage of total revenue, less than			1.00%
Disaggregation of Revenue [Line Items]
Revenue	$ 481,619	$ 398,904	$ 1,088,927	$ 942,697
Wholesale
Disaggregation of Revenue [Line Items]
Revenue	261,209	211,560	605,148	540,410
Direct-to-consumer
Disaggregation of Revenue [Line Items]
Revenue	220,410	187,344	483,779	402,287
United States
Disaggregation of Revenue [Line Items]
Revenue	280,170	238,193	643,014	571,377
United States | Wholesale
Disaggregation of Revenue [Line Items]
Revenue	129,166	108,183	316,006	291,179
United States | Direct-to-consumer
Disaggregation of Revenue [Line Items]
Revenue	151,004	130,010	327,008	280,198
LAAP
Disaggregation of Revenue [Line Items]
Revenue	100,884	79,473	232,453	197,817
LAAP | Wholesale
Disaggregation of Revenue [Line Items]
Revenue	46,146	33,550	114,333	102,770
LAAP | Direct-to-consumer
Disaggregation of Revenue [Line Items]
Revenue	54,738	45,923	118,120	95,047
EMEA
Disaggregation of Revenue [Line Items]
Revenue	84,986	67,389	156,761	122,723
EMEA | Wholesale
Disaggregation of Revenue [Line Items]
Revenue	78,003	62,131	135,584	108,616
EMEA | Direct-to-consumer
Disaggregation of Revenue [Line Items]
Revenue	6,983	5,258	21,177	14,107
Canada
Disaggregation of Revenue [Line Items]
Revenue	15,579	13,849	56,699	50,780
Canada | Wholesale
Disaggregation of Revenue [Line Items]
Revenue	7,894	7,696	39,225	37,845
Canada | Direct-to-consumer
Disaggregation of Revenue [Line Items]
Revenue	7,685	6,153	17,474	12,935
Apparel, Accessories and Equipment
Disaggregation of Revenue [Line Items]
Revenue	394,657	329,692	884,616	769,771
Apparel, Accessories and Equipment | United States
Disaggregation of Revenue [Line Items]
Revenue	250,394	216,091	563,720	502,834
Apparel, Accessories and Equipment | LAAP
Disaggregation of Revenue [Line Items]
Revenue	74,600	58,419	170,980	145,188
Apparel, Accessories and Equipment | EMEA
Disaggregation of Revenue [Line Items]
Revenue	56,881	43,864	104,356	80,693
Apparel, Accessories and Equipment | Canada
Disaggregation of Revenue [Line Items]
Revenue	12,782	11,318	45,560	41,056
Footwear
Disaggregation of Revenue [Line Items]
Revenue	86,962	69,212	204,311	172,926
Footwear | United States
Disaggregation of Revenue [Line Items]
Revenue	29,776	22,102	79,294	68,543
Footwear | LAAP
Disaggregation of Revenue [Line Items]
Revenue	26,284	21,054	61,473	52,629
Footwear | EMEA
Disaggregation of Revenue [Line Items]
Revenue	28,105	23,525	52,405	42,030
Footwear | Canada
Disaggregation of Revenue [Line Items]
Revenue	$ 2,797	$ 2,531	$ 11,139	$ 9,724

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Non-Controlling Interest Non-Controlling Interest (Narrative) (Details)	Jun. 30, 2018
Noncontrolling Interest [Line Items]
Non-controlling Interest, Ownership Percentage by Parent	60.00%

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Non-Controlling Interest Non-Controlling Interest (Schedule of Equity) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Noncontrolling Interest [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification			$ 14,100,000
Common Stock, Dividends, Per Share, Cash Paid	$ 0.22	$ 0.18	$ 0.44	$ 0.36
Balance, beginning of period			$ 1,652,259,000	$ 1,581,511,000
Net income	$ 10,495,000	$ (11,316,000)	59,224,000	27,569,000
Other comprehensive income (loss):
Unrealized holding gains on available-for-sale securities	0	(4,000)	4,000	0
Derivative holding losses	20,553,000	(6,157,000)	15,646,000	(7,762,000)
Foreign currency translation adjustments	(18,262,000)	7,182,000	(12,003,000)	18,684,000
Cash dividends			(30,856,000)	(25,046,000)
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders			(21,332,000)
Issuance of common stock under employee stock plans, net			10,840,000	7,067,000
Stock-based compensation expense			6,599,000	5,719,000
Stock Repurchased During Period, Value	(22,007,000)	(2,542,000)	(40,106,000)	(35,542,000)
Balance, end of period	$ 1,654,375,000	$ 1,572,200,000	1,654,375,000	1,572,200,000
Parent [Member]
Noncontrolling Interest [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification			14,100,000
Common Stock, Dividends, Per Share, Cash Paid	$ 0.44	$ 0.36
Balance, beginning of period			1,621,951,000	1,560,820,000
Net income			54,844,000	24,471,000
Other comprehensive income (loss):
Unrealized holding gains on available-for-sale securities			4,000
Derivative holding losses			15,120,000	(7,567,000)
Foreign currency translation adjustments			(12,096,000)	16,888,000
Cash dividends			(30,856,000)	(25,046,000)
Issuance of common stock under employee stock plans, net			10,840,000	7,067,000
Stock-based compensation expense			6,599,000	5,719,000
Stock Repurchased During Period, Value			(40,106,000)	(35,542,000)
Balance, end of period	$ 1,640,400,000	$ 1,546,810,000	1,640,400,000	1,546,810,000
Non-controlling Interest [Member]
Noncontrolling Interest [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification			0
Balance, beginning of period			30,308,000	20,691,000
Net income			4,380,000	3,098,000
Other comprehensive income (loss):
Unrealized holding gains on available-for-sale securities			0
Derivative holding losses			526,000	(195,000)
Foreign currency translation adjustments			93,000	1,796,000
Cash dividends				0
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders			(21,332,000)
Issuance of common stock under employee stock plans, net			0	0
Stock-based compensation expense			0	0
Stock Repurchased During Period, Value			0	0
Balance, end of period	$ 13,975,000	$ 25,390,000	$ 13,975,000	$ 25,390,000

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Intangible Assets, Net and Goodwill (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 745,000	$ 1,106,000	$ 1,490,000	$ 2,393,000
Goodwill	$ 68,594,000	$ 68,594,000	$ 68,594,000	$ 68,594,000	$ 68,594,000
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life			3 years

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Intangible Assets, Net and Goodwill (Summary Of Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Summary of Identifiable Intangible Assets [Line Items]
Intangible assets subject to amortization, Gross carrying amount	$ 37,198	$ 37,198	$ 37,198
Intangible assets subject to amortization, Accumulated amortization	(24,554)	(23,064)	(21,574)
Intangible assets subject to amortization, 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
Patents And Purchased Technology [Member]
Summary of Identifiable Intangible Assets [Line Items]
Intangible assets subject to amortization, Gross carrying amount	14,198	14,198	14,198
Intangible assets subject to amortization, Accumulated amortization	(11,316)	(10,651)	(9,986)
Customer Relationships [Member]
Summary of Identifiable Intangible Assets [Line Items]
Intangible assets subject to amortization, Gross carrying amount	23,000	23,000	23,000
Intangible assets subject to amortization, Accumulated amortization	$ (13,238)	$ (12,413)	$ (11,588)

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Intangible Assets, Net and Goodwill Schedule of Estimated Five Year Amortization Expense (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Finite-Lived Intangible Assets [Abstract]
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 2,980
Finite-Lived Intangible Assets, Amortization Expense, Year Four	2,980
Finite-Lived Intangible Assets, Amortization Expense, Year Three	2,537
Finite-Lived Intangible Assets, Amortization Expense, Year Four	1,650
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 1,650

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Intangible Assets, Net and Goodwill Range (Details)	6 Months Ended
	Jun. 30, 2018
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	3 years
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years

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Product Warranty (Reconciliation Of Product Warranties) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Reconciliation of Product Warranty Accrual [Roll Forward]
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

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Stock-Based Compensation (Narrative) (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017
Employee Stock Options [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock options granted (in shares)		394,098	496,384
Unrecognized costs related to share based compensation	$ 11,184,000	$ 11,184,000
Weighted average period of recognition of unrecognized costs related to stock options, years	2 years 8 months 14 days
Restricted Stock Units [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Unrecognized costs related to share based compensation	$ 20,443,000	$ 20,443,000
Weighted average period of recognition of unrecognized costs related to stock options, years	2 years 8 months 9 days
Restricted stock units granted (in shares)		176,331	245,953

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Stock-Based Compensation (Summary Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 3,486	$ 2,777	$ 6,599	$ 5,719
Employee Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,222	1,005	2,294	2,009
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2,264	$ 1,772	$ 4,305	$ 3,710

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Stock-Based Compensation (Schedule Of Weighted Average Assumptions) (Details) - Stock Option [Member] - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term, years	6 years 5 months 20 days	6 years 10 months 20 days	4 years 5 months 26 days	4 years 6 months 23 days
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 (in dollars per share)	$ 26.21	$ 15.98	$ 18.78	$ 13.00

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Stock-Based Compensation (Schedule Of Weighted Average Assumptions For Restricted Stock Units) (Details) - Restricted Stock Units [Member] - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years	2 years 1 month 28 days	3 years 1 month	3 years 10 months 19 days	3 years 10 months 10 days
Expected annual dividend yield	0.99%	1.26%	1.15%	1.30%
Estimated average grant date fair value per restricted stock unit (in dollars per share)	$ 87.20	$ 55.06	$ 72.95	$ 52.54

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Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss) at beginning of period	$ (8,949)	$ (12,892)
Other comprehensive income (loss) before reclassifications	3,014	99
Amounts reclassified from other comprehensive income	(439)	(503)
Net other comprehensive income (loss) during the period	2,575	(404)
Accumulated other comprehensive income (loss) at end of period	(6,374)	(13,296)
Unrealized Gains (Losses) on Available-For-Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss) at beginning of period	0	0
Other comprehensive income (loss) before reclassifications	0	(4)
Amounts reclassified from other comprehensive income	0	0
Net other comprehensive income (loss) during the period	0	(4)
Accumulated other comprehensive income (loss) at end of period	0	(4)
Unrealized Holding Gains (Losses) on Derivative Transactions [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss) at beginning of period	(15,801)	5,246
Other comprehensive income (loss) before reclassifications	20,129	(5,537)
Amounts reclassified from other comprehensive income	(439)	(503)
Net other comprehensive income (loss) during the period	19,690	(6,040)
Accumulated other comprehensive income (loss) at end of period	3,889	(794)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss) at beginning of period	6,852	(18,138)
Other comprehensive income (loss) before reclassifications	(17,115)	5,640
Amounts reclassified from other comprehensive income	0	0
Net other comprehensive income (loss) during the period	(17,115)	5,640
Accumulated other comprehensive income (loss) at end of period	$ (10,263)	$ (12,498)

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Earnings Per Share (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock repurchase plan, authorized amount	$ 700,000,000		$ 700,000,000
Aggregate shares repurchased under stock repurchase plan (in shares)			22,158,325
Stock purchase value			$ 602,169,000
Stock Repurchased During Period, Shares	264,793	48,943	500,290	665,095
Stock Repurchased During Period, Value	$ 22,007,000	$ 2,542,000	$ 40,106,000	$ 35,542,000
Stock Options And Service-Based Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, number of shares	378,360	2,641,676	290,673	862,559
Performance-Based Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, number of shares	21,164	50,403	21,164	46,485

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Earnings Per Share (Reconciliation Of Common Shares Used In Denominator For Computing Basic And Diluted EPS) (Details) - $ / shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Weighted average shares of common stock outstanding, used in computing basic earnings per share (in shares)	70,021	69,672	70,050	69,639
Effect of dilutive stock options and restricted stock units (in shares)	727	0	774	728
Weighted-average shares of common stock outstanding, used in computing diluted earnings per share (in shares)	70,748	69,672	70,824	70,367
Income Loss From Continuing Operations Per Basic And Diluted Share [Abstract]
Earnings (loss) per share of common stock, Basic (in dollars per share)	$ 0.14	$ (0.17)	$ 0.78	$ 0.35
Earnings (loss) per share of common stock, Diluted (in dollars per share)	$ 0.14	$ (0.17)	$ 0.77	$ 0.35

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Segment Information (Schedule Of Segment Information) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($) GeographicSegments	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | GeographicSegments	4
Net sales to unrelated entities	$ 481,619	$ 398,904	$ 1,088,927	$ 942,697
Income from operations	9,749	(17,285)	69,070	30,720
Interest income, net	2,928	1,250	5,224	2,205
Related party interest expense on note payable	0	(180)	0	(429)
Other non-operating expense	(96)	360	(364)	307
Income before income tax	12,581	(15,855)	73,930	32,803
United States [Member]
Segment Reporting Information [Line Items]
Net sales to unrelated entities	280,170	238,196	643,014	571,380
Income from operations	39,432	22,314	113,819	84,956
LAAP
Segment Reporting Information [Line Items]
Net sales to unrelated entities	100,884	79,467	232,453	197,811
Income from operations	7,669	3,503	29,408	23,311
EMEA [Member]
Segment Reporting Information [Line Items]
Net sales to unrelated entities	84,986	67,392	156,761	122,726
Income from operations	5,415	152	12,557	1,476
Canada [Member]
Segment Reporting Information [Line Items]
Net sales to unrelated entities	15,579	13,849	56,699	50,780
Income from operations	(2,548)	(2,563)	3,995	3,264
Operating Segments [Member]
Segment Reporting Information [Line Items]
Income from operations	49,968	23,406	159,779	113,007
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Unallocated corporate expenses	$ (40,219)	$ (40,691)	$ (90,709)	$ (82,287)

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Financial Instruments And Risk Management (Narrative) (Details)	3 Months Ended
	Jun. 30, 2018 USD ($)
Derivative [Line Items]
Deferred net gains on derivatives accumulated in other comprehensive income expected reclassification to net income in next twelve months	$ 2,594,000
Maximum [Member]
Derivative [Line Items]
Derivatives maximum remaining maturity	3 years
Aggregate unrealized gain of derivative contracts with single counterparty	$ 5,000,000

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Financial Instruments And Risk Management (Gross Notional Amount Of Outstanding Derivative Instruments) (Details) - Currency Forward Contracts [Member] - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Derivative Instruments Designated As Cash Flow Hedges [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Currency forward contracts	$ 493,828	$ 448,448	$ 314,000
Derivative Instruments Not Designated As Cash Flow Hedges [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Currency forward contracts	$ 419,707	$ 231,161	$ 166,476

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Financial Instruments And Risk Management (Balance Sheet Classification And Fair Value Of Derivative Instruments) (Details) - Currency Forward Contracts [Member] - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Prepaid Expenses And Other Current Assets [Member] | Derivative Instruments Designated As Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	$ 4,692	$ 1,648	$ 1,648
Prepaid Expenses And Other Current Assets [Member] | Derivative Instruments Not Designated As Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	2,471	683	505
Other Non-Current Assets [Member] | Derivative Instruments Designated As Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	10,516	335	816
Accrued Liabilities [Member] | Derivative Instruments Designated As Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities	1,022	9,336	3,151
Accrued Liabilities [Member] | Derivative Instruments Not Designated As Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities	1,873	1,229	916
Other Long Term Liabilities [Member] | Derivative Instruments Designated As Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities	$ 327	$ 3,820	$ 1,665

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Financial Instruments And Risk Management (Effect And Classification Of Derivative Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Derivative Instruments Designated As Cash Flow Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive income or loss	$ 20,859	$ (5,537)	$ 15,627	$ (6,975)
Cost Of Sales [Member] | Derivative Instruments Designated As Cash Flow Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) reclassified from accumulated other comprehensive income or loss to income or loss for the effective portion	(1,398)	897	(3,604)	951
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	1,896	492	3,821	1,286
Sales [Member] | Derivative Instruments Designated As Cash Flow Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) reclassified from accumulated other comprehensive income or loss to income or loss for the effective portion	19	0	24	144
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	6	2	12	5
Other Non-operating Income (Expense) [Member] | Derivative Instruments Not Designated As Cash Flow Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in income or loss	$ 2,836	$ (1,723)	$ 2,234	$ (3,411)

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Commitments And Contingencies (Details)	Jun. 30, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Inventory purchase obligations	$ 424,968,000

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Fair Value Measures (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 618,669	$ 472,969	$ 484,537
Total liabilities measured at fair value	3,222	14,385	5,732
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	217,056	346,425	383,830
Total liabilities measured at fair value	0	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	401,613	126,544	100,707
Total liabilities measured at fair value	3,222	14,385	5,732
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0	0
Total liabilities measured at fair value	0	0	0
Accrued Liabilities [Member] | Derivative Financial Instruments, Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	2,895	10,565	4,067
Accrued Liabilities [Member] | Derivative Financial Instruments, Liabilities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	0	0	0
Accrued Liabilities [Member] | Derivative Financial Instruments, Liabilities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	2,895	10,565	4,067
Accrued Liabilities [Member] | Derivative Financial Instruments, Liabilities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	0	0	0
Other Long Term Liabilities [Member] | Derivative Financial Instruments, Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	327	3,820	1,665
Other Long Term Liabilities [Member] | Derivative Financial Instruments, Liabilities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	0	0	0
Other Long Term Liabilities [Member] | Derivative Financial Instruments, Liabilities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	327	3,820	1,665
Other Long Term Liabilities [Member] | Derivative Financial Instruments, Liabilities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	0	0	0
Cash Equivalents [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	144,729	282,860	307,724
Cash Equivalents [Member] | Money Market Funds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	144,729	282,860	307,724
Cash Equivalents [Member] | Money Market Funds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0	0
Cash Equivalents [Member] | Money Market Funds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0	0
Cash Equivalents [Member] | Time Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	61,563	52,808	66,217
Cash Equivalents [Member] | Time Deposits [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	61,563	52,808	66,217
Cash Equivalents [Member] | Time Deposits [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0
Cash Equivalents [Member] | Time Deposits [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0	0
Cash Equivalents [Member] | Repurchase Agreements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	121,352	4,995
Cash Equivalents [Member] | Repurchase Agreements [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Cash Equivalents [Member] | Repurchase Agreements [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	121,352	4,995
Cash Equivalents [Member] | Repurchase Agreements [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Cash Equivalents [Member] | US Government Backed Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		25,338	97,738
Cash Equivalents [Member] | US Government Backed Municipal Bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		0	0
Cash Equivalents [Member] | US Government Backed Municipal Bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		25,338	97,738
Cash Equivalents [Member] | US Government Backed Municipal Bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		0	0
Available-For-Sale Short-Term Investments [Member] | Repurchase Agreements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	225,247	19,963
Available-For-Sale Short-Term Investments [Member] | Repurchase Agreements [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Available-For-Sale Short-Term Investments [Member] | Repurchase Agreements [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	225,247	19,963
Available-For-Sale Short-Term Investments [Member] | Repurchase Agreements [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Available-For-Sale Short-Term Investments [Member] | US Government Backed Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	37,335	73,582
Available-For-Sale Short-Term Investments [Member] | US Government Backed Municipal Bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Available-For-Sale Short-Term Investments [Member] | US Government Backed Municipal Bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	37,335	73,582
Available-For-Sale Short-Term Investments [Member] | US Government Backed Municipal Bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Short-term Investments [Member] | Mutual Fund Shares [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	1,432	1,438	1,591
Short-term Investments [Member] | Mutual Fund Shares [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	1,432	1,438	1,591
Short-term Investments [Member] | Mutual Fund Shares [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0	0
Short-term Investments [Member] | Mutual Fund Shares [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0	0
Other Current Assets [Member] | Derivative Financial Instruments, Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	7,163	2,331	2,153
Other Current Assets [Member] | Derivative Financial Instruments, Assets [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0	0
Other Current Assets [Member] | Derivative Financial Instruments, Assets [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	7,163	2,331	2,153
Other Current Assets [Member] | Derivative Financial Instruments, Assets [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0	0
Non Current Assets [Member] | Mutual Fund Shares [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	9,332	9,319	8,298
Non Current Assets [Member] | Mutual Fund Shares [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	9,332	9,319	8,298
Non Current Assets [Member] | Mutual Fund Shares [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0	0
Non Current Assets [Member] | Mutual Fund Shares [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0	0
Non Current Assets [Member] | Derivative Financial Instruments, Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	10,516	335	816
Non Current Assets [Member] | Derivative Financial Instruments, Assets [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Non Current Assets [Member] | Derivative Financial Instruments, Assets [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	10,516	335	$ 816
Non Current Assets [Member] | Derivative Financial Instruments, Assets [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 0	$ 0

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Related Party Transactions Related Party Transactions (Details)	3 Months Ended			6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2018 CNY (¥)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Related Party Transaction [Line Items]
Non-controlling Interest, Ownership Percentage by Parent	60.00%			60.00%
Repayments of Related Party Debt				$ 0	$ 14,236,000
Related party interest expense on note payable	$ 0		$ 180,000	0	429,000
Swire Resources [Member]
Related Party Transaction [Line Items]
Related party service fees, interest expense and miscellaneous expenses	73,000		329,000
Accounts payable to related party current	83,000		$ 340,000	$ 83,000	$ 340,000	$ 89,000
Dividends	53,330,000
Dividend Payable to Parent	31,998,000
Dividend Payable to Non Controlling Interest	$ 21,332,000
China, Yuan Renminbi | Swire Resources [Member]
Related Party Transaction [Line Items]
Dividends | ¥		¥ 341,347,000