10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

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FORM 10-K

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

For the fiscal year ended December 31, 2021

OR

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

For the transition period from_______to_______

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Commission file number 000-23939

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COLUMBIA SPORTSWEAR COMPANY

(Exact name of registrant as specified in its charter)

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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 and zip code
	(503) 985-4000
	(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	COLM	The NASDAQ Global Select Market
Securities registered pursuant to Section 12(g) of the Act:
None				Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.					Yes	☒	No	☐
---	---	---	---	---	---	---	---	---
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.					Yes	☐	No	☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.					Yes	☒	No	☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such short period that the registrant was required to submit such files)					Yes	☒	No	☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
	Large Accelerated Filer	☒	Accelerated filer	☐
	Non-accelerated filer	☐	Smaller reporting company	☐
			Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act								☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.7262(b)) by the registered public accounting firm that prepared or issued its audit report.								☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).					Yes	☐	No	☒

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant as of June 30, 2021, based upon the closing price of the common stock on the last business day of the registrant's most recently completed second fiscal quarter, was $3,280,599,605.

The number of shares outstanding of the registrant's common stock on February 11, 2022 was 64,513,156.

Portions of the registrant's proxy statement related to its 2022 Annual Shareholders' Meeting to be filed subsequently are incorporated by reference into Part III of this Annual Report on Form 10-K. Except as expressly incorporated by reference, the registrant's proxy statement related to its 2022 Annual Shareholders' Meeting shall not be deemed to be part of this report.

| TABLE OF CONTENTS | | --- || | | Page | | --- | --- | --- | | SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS | | | | PART I | | | | Item 1. | Business | 1 | | | Information About Our Executive Officers | 6 | | Item 1A. | Risk Factors | 7 | | Item 1B. | Unresolved Staff Comments | 18 | | Item 2. | Properties | 19 | | Item 3. | Legal Proceedings | 19 | | Item 4. | Mine Safety Disclosures | 19 | | PART II | | | | Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 20 | | Item 6. | [Reserved] | 21 | | Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 21 | | Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | 32 | | Item 8. | Financial Statements and Supplementary Data | 34 | | | Report of IndependentRegistered Public Accounting Firm (PCAOB 34) | 35 | | | Consolidated Balance Sheets | 39 | | | Consolidated Statements of Operations | 40 | | | Consolidated Statements of Comprehensive Income | 41 | | | Consolidated Statements of Cash Flows | 42 | | | ConsolidatedStatements of Equity | 43 | | | Index to Notesto Consolidated Financial Statements | 44 | | Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 69 | | Item 9A. | Controls and Procedures | 69 | | Item 9B. | Other Information | 69 | | PART III | | | | Item 10. | Directors, Executive Officers and Corporate Governance | 70 | | Item 11. | Executive Compensation | 70 | | Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 70 | | Item 13. | Certain Relationships and Related Transactions, and Director Independence | 70 | | Item 14. | Principal Accountant Fees and Services | 70 | | PART IV | | | | Item 15. | Exhibits,Financial Statement Schedules | 71 | | Item 16. | Form 10-K Summary | 74 | | | Signatures | 75 |

COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K

| Table of Contents | | --- || SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS | | --- |

This annual report contains forward-looking statements within the meaning of federal securities laws. Forward-looking statements often use words such as "will", "anticipate", "estimate", "expect", "should", "may" and other words and terms of similar meaning or reference future dates. Forward-looking statements include any statements related to our expectations regarding future performance or market position, including any statements regarding outdoor participation by consumers, the casualization of the apparel and footwear markets, the promotional environment, wholesale trade terms, inventories, consumer spending and preferences, store traffic, ocean freight charges, inventory receipts, logistics constraints, manufacturing constraints, labor availability, inflationary pressures, consumer expectations, our short and long-term cash needs and our ability to meet those needs, amortization expenses and maturities of liabilities.

These forward-looking statements, and others we make from time to time expressed in good faith, are believed to have a reasonable basis; however, each forward-looking statement involves risks and uncertainties. Many factors may cause actual results to differ materially from projected results in forward-looking statements, including the risks described in Item 1A of this Annual Report on Form 10-K. Forward-looking statements are inherently less reliable than historical information. Except as required by law, we do not undertake any duty to update forward-looking statements after the date they are made or to conform them to actual results or to changes in circumstances or to reflect changes in events, circumstances or expectations. New factors emerge from time to time and it is not possible for us to predict or assess the effects of all such factors or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.

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| Table of Contents | | --- || PART I | | --- | | ITEM 1. | BUSINESS | | --- | --- |

GENERAL

Founded in 1938 in Portland, Oregon, as a small, family-owned, regional hat distributor and incorporated in Oregon in 1961, Columbia Sportswear Company has grown to become a global leader in designing, developing, marketing, and distributing outdoor, active and everyday lifestyle apparel, footwear, accessories, and equipment products.

Unless the context indicates otherwise, the terms "we," "us," "our," "the Company," and "Columbia" refer to Columbia Sportswear Company, together with its wholly owned subsidiaries and entities in which it maintained a controlling financial interest.

BRANDS AND PRODUCTS

We connect active people with their passions through our four well-known brands by designing, developing, marketing, and distributing our outdoor, active and everyday lifestyle apparel, footwear, accessories and equipment products to meet the diverse needs of our customers and consumers.

Columbia® | Founded in 1938, our Columbia brand unlocks the outdoors for everyone. Our Columbia brand is known for authentic, high-value outdoor apparel, footwear, accessories and equipment products designed with innovation, function, and quality suited for all seasons, activities and locations.

SOREL® | Acquired in 2000, our SOREL brand creates powerful footwear for unstoppable individuals. Our SOREL brand provides premium, durable and design-driven footwear and accessories primarily to fashion-forward savvy women, as well as to men and youth consumers.

Mountain Hard Wear® | Acquired in 2003, our Mountain Hardwear brand exists to make gear that works, because out in the mountains, it matters for climbers. Our Mountain Hardwear brand offers premium apparel, accessories and equipment designed to meet the high-performance needs of climbing enthusiasts and to satisfy climbers' everyday lifestyles.

prAna® | Acquired in 2014, our prAna brand focuses on clothing for positive change, in an effort to positively impact the planet and its people. Our prAna brand provides consumers with clothes that tell a story. From city streets to mountain peaks, prAna outfits adventurous spirits in stylish, sustainable and versatile gear.

Across our diverse portfolio of brands, our products have gained recognition for their innovation, quality and performance. Our products incorporate the cumulative design, fabrication, fit, and construction technologies that we have pioneered over several decades and continue to innovate. Our apparel, accessories and equipment products are designed to be used during a wide variety of activities, such as skiing, snowboarding, hiking, climbing, mountaineering, camping, hunting, fishing, trail running, water sports, yoga, golf, and adventure travel. Our footwear products include durable, lightweight hiking boots, trail running shoes, rugged cold weather boots for activities on snow and ice, sandals and shoes for use in water activities, and function-first fashion footwear and casual shoes for everyday use.

SALES AND DISTRIBUTION

We sell our products in approximately 90 countries and operate in four geographic segments: United States ("U.S."), Latin America and Asia Pacific ("LAAP"), Europe, Middle East and Africa ("EMEA"), and Canada. Each geographic segment operates predominantly in one industry: the design, sourcing, marketing, and distribution of outdoor, active and everyday lifestyle apparel, footwear, accessories, and equipment products.

We sell our products through a mix of distribution channels. Our wholesale distribution channel consists of small, independently operated specialty outdoor and sporting goods stores, regional, national and international sporting goods chains, large regional, national and international department store chains, internet retailers, and international distributors where we generally do not have our own direct operations. Our direct-to-consumer ("DTC") distribution channel consists of our own network of branded and outlet retail stores, brand-specific e-commerce sites, and concession or franchise based arrangements with third-parties at branded, outlet and shop-in-shop retail

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locations in the LAAP and EMEA regions. In addition, we earn revenue through licensing certain of our trademarks across a range of apparel, accessories, equipment, footwear, and home products.

U.S.

U.S. is our largest segment and provides apparel, accessories and equipment products through our Columbia, Mountain Hardwear, and prAna brands and footwear products through our Columbia and SOREL brands. These products are sold by our U.S. wholesale and DTC businesses. We have nearly 2,200 wholesale customers in the U.S. In 2021, our two largest U.S. wholesale customers accounted for approximately 12% of U.S. net sales, or less than 10% individually. At December 31, 2021, we directly operated 142 retail stores.

We distribute the majority of our U.S. products from distribution centers that we own and operate in Portland, Oregon and Robards, Kentucky, as well as through a third-party logistics company that operates a distribution center in Louisville, Kentucky. We also arrange to have products directly shipped from contract manufacturers to wholesale customer-designated facilities in the United States.

LAAP

LAAP provides apparel, accessories and equipment products through our Columbia, Mountain Hardwear and prAna brands and footwear products through our Columbia and SOREL brands. These products are sold by our wholly-owned subsidiaries in Japan, Korea and China, and through distributors in other LAAP markets. We have over 300 wholesale customers, including distributors, in LAAP. In 2021, our five largest LAAP wholesale customers accounted for approximately 10% of LAAP net sales, or less than 10% individually. At December 31, 2021, we directly operated 277 retail stores, and maintained 29 concession and 69 franchise based arrangements with third-parties.

We distribute LAAP products through third-party logistics companies that operate distribution centers near Tokyo, Seoul, and Shanghai. In addition, we utilize various distributors in the LAAP region. The vast majority of our products sold to distributors are shipped directly to the distributors from the contract manufacturers from which we source our products.

EMEA

EMEA provides apparel, accessories and equipment products through our Columbia, Mountain Hardwear and prAna brands and footwear products through our Columbia and SOREL brands. These products are sold by our Europe-direct and EMEA distributor businesses. We have over 3,450 wholesale customers, including distributors, in EMEA. In 2021, our largest EMEA wholesale customer accounted for approximately 17% of EMEA net sales. At December 31, 2021, we directly operated 26 retail stores and maintained 21 concession-based arrangements with third-parties.

We distribute the majority of EMEA products from a distribution center that we own and operate in France. In addition, we utilize various distributors in the EMEA region. The vast majority of our products sold to distributors are shipped directly to the distributors from the contract manufacturers from which we source our products.

CANADA

Canada provides apparel, accessories and equipment products through our Columbia, Mountain Hardwear and prAna brands and footwear products through our Columbia and SOREL brands. These products are sold by our Canada wholesale and DTC businesses. We have nearly 550 wholesale customers in Canada. In 2021, our two largest Canada wholesale customers accounted for approximately 24% of Canada net sales, or approximately 14% and 10% individually. At December 31, 2021, we directly operated 10 retail stores.

We distribute the majority of Canada products from a distribution center that we own and operate in Ontario.

See Item 7 and Item 8 in this Annual Report on Form 10-K for further discussion regarding our reportable segments.

SEASONALITY AND VARIABILITY OF BUSINESS

Our business is affected by the general seasonal trends common to the industry, including seasonal weather and discretionary consumer shopping and spending patterns. Our products are marketed on a seasonal basis, and our sales are weighted substantially toward the third and fourth quarters, while our operating costs are more equally distributed throughout the year.

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PRODUCT DESIGN AND INNOVATION

We are committed to designing innovative and functional products for consumers who participate in a wide range of outdoor, active and everyday lifestyle activities, enabling them to enjoy those activities longer and in greater comfort. We distinguish our products in the marketplace by placing significant value in the design and fit, including the overall appearance and image, and technical performance features of our products.

Our team of specialists both lead our internal research and development efforts and work closely with independent suppliers to conceive, develop and commercialize innovative technologies and products to provide the unique performance benefits desired by consumers. We utilize our working relationships with specialists in the fields of chemistry, biochemistry, engineering, industrial design, materials research, graphic design, and other related fields, along with consumer insights and feedback, to develop and test innovative performance products, processes, packaging, and displays. These efforts, coupled with our drive for continuous improvement, represent key factors in the ongoing success of our products.

MANUFACTURING AND SOURCING

We seek to substantially limit our invested capital and avoid the costs and risks associated with large production facilities and the associated large labor forces; therefore, we do not own, operate or manage manufacturing facilities. The majority of our products are manufactured by contract manufacturers located outside the United States. We establish and maintain long-term relationships with key manufacturing partners, but generally do not maintain formal long-term manufacturing volume commitments. The use of contract manufacturers greatly increases our production capacity, maximizes our flexibility and improves our product pricing.

We value legal, ethical and fair treatment of people involved in manufacturing our products. Independent contractors manufacturing our products are subject to our standards of manufacturing practices to facilitate decent, safe and humane working conditions, as well as promote ethical business practices. We have programs in place to monitor manufacturer practices and assess alignment against these standards.

We maintain seven manufacturing liaison offices in six Asia Pacific countries. Our personnel in these offices monitor production at our contract manufacturers' facilities to ensure our products are manufactured to our specifications. The physical location of our employees in these regional offices enhances our ability to monitor contract manufacturers for compliance with our policies, procedures and standards regarding quality, delivery, pricing, and labor practices. The design of our quality assurance process seeks to ensure that our products meet and maintain our quality standards and product reputation.

In 2021, our apparel, accessories and equipment products were manufactured in 13 countries. In 2021, manufacturers in Vietnam, Bangladesh, and Indonesia produced approximately 45%, 15% and 15%, respectively, of these products. Five of the largest contract manufacturers account for approximately 35% of our apparel, accessories and equipment production, with the largest manufacturer accounting for nearly 10%.

In 2021, our footwear products were manufactured in six countries. In 2021, manufacturers in Vietnam and China produced approximately 85% and 10%, respectively, of these products. Five of the largest contract manufacturers account for approximately 85% of our footwear production, with the largest manufacturer accounting for approximately 30%, three manufacturers accounting for approximately 15% each and one manufacturer accounting for approximately 10%.

Raw materials for the manufacturing of our apparel, accessories, equipment, and footwear products are primarily sourced from Asia and are purchased directly by our contract manufacturers.

MARKETING

Our portfolio of brands enables us to target a wide range of consumers with differentiated products. Our marketing supports and enhances our competitive position in the marketplace, drives global alignment through seasonal initiatives, builds brand equity, raises global brand relevance and awareness, infuses our brands with excitement, and, most importantly, stimulates worldwide consumer demand for our products.

Our integrated marketing efforts deliver consistent messages about the performance benefits, features and styles of our products within each of our brands and their different target consumers. We utilize a variety of means to deliver our marketing messages, including digital marketing, social media interactions, television and print publications, experiential events, brand ambassadors, enhanced product store displays, and consumer focused public relations efforts. In addition, we reinforce our brands' marketing messages with our key wholesale

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customers by utilizing digital platforms, television, radio, print and advertising campaigns, as well as in-store branded visual merchandising display tools and favorable product presentation.

We operate branded e-commerce and marketing sites and maintain an active presence on a variety of global social media platforms. We authorize and encourage our international distributors to connect with consumers by operating e-commerce and marketing sites and maintaining a presence on social media platforms. Digital marketing and social media engagement increase our brands' global ability to build strong emotional connections with consumers through consistent, brand-enhancing content. Our digital media connects our consumers to brand content and products, while facilitating their direct product purchases or directing them to nearby retail locations.

INTELLECTUAL PROPERTY

Our trademarks create a market for our products, identify our company and differentiate our products from competitors' products. We own many trademarks, including Columbia Sportswear Company®, Columbia®, SOREL®, Mountain Hard Wear®, prAna®, the Columbia diamond shaped logo, the Mountain Hardwear nut logo, the SOREL polar bear logo, and the prAna sitting pose logo, as well as many other trademarks relating to our brands, products, styles, and technologies.

Our design and utility patents describe the technologies, processes and designs incorporated into many of our most important products. We file applications for United States and foreign patents to protect inventions, designs and enhancements that we deem to have commercial value. We have design and utility patents, which expire at various times, as well as pending patent applications in the United States and other countries.

We vigorously protect these proprietary rights against counterfeit reproductions and other infringing activities.

COMPETITION

The markets for outdoor, active and everyday lifestyle apparel, footwear, accessories, and equipment products are highly competitive and we face significant competition from numerous companies. Our competition includes large companies with significant financial, marketing and operational resources, small companies with limited resources but deep entrenchment in their local markets, and other branded competitors. We also face competition from our wholesale customers who, under their own private brand names, produce and distribute similar products to our target consumers through their own retail stores and e-commerce businesses. We identify our primary competitive factors in the markets for outdoor, active and everyday lifestyle products to be brand strength, product innovation, design, functionality, durability, and price, as well as effective marketing and delivery of product in alignment with consumer expectations.

GOVERNMENT REGULATION

As a company with global operations, we are, and our products are, subject to the laws of the United States and multiple foreign jurisdictions in which we operate and the rules and regulations of various governing bodies, which may differ among jurisdictions, including laws and regulations concerning product safety, environmental standards, trade, information security, privacy, labor and employment, health, marketing, competition, and safety.

See Item 1A of this Annual Report on Form 10-K for more information of risks relating to these laws, rules, and regulations.

HUMAN CAPITAL

We believe that attracting and retaining exceptional talent strengthens our enterprise and propels us as a leader in product innovation. As part of these efforts, we strive to offer a competitive compensation and benefits program, foster a community where everyone feels included and empowered to do their best work and promote employee well-being.

At December 31, 2021, our employee workforce of approximately 8,325 employees was comprised of approximately 4,500 full-time and part-time retail employees, 925 distribution center employees and 2,900 corporate employees. From December 31, 2020 to December 31, 2021, we had an overall employee turnover rate of approximately 58%, impacted by approximately 87% and 61% turnover rate in our retail and distribution employee base, respectively. Approximately 31% of our workforce was located outside of the United States at December 31, 2021.

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Compensation and Benefits

Our compensation plans aim to reward performance. We offer competitive wages and, to align the interest of our management with those of our shareholders, shares of our common stock through a stock incentive plan. Globally, we offer employees affordable, competitive and comprehensive benefit programs. In the United States, for our largest employee base, we sponsor comprehensive medical, dental, vision and health savings or flexible spending account plans. We also provide 401(k) plan matching of employee contributions, paid time off, an employee assistance plan, life insurance, and short-term and long-term disability insurance.

Diversity, Equity and Inclusion

At December 31, 2021, our global workforce was self-disclosed as 42% male, 55% female, less than 1% non-binary and 2% undisclosed or chose not to identify. In the United States, the self-disclosed ethnicity of our workforce, including retail and distribution employees, was 60% White, 7% Asian, 19% Hispanic or Latino, 7% Black, less than 1% American Indian or Alaskan Native, less than 1% Native Hawaiian or other Pacific Islander, 4% two or more races and 2% undisclosed or chose not to identify. A Diversity, Equity and Inclusion Leadership Team was formed in 2020 to lead our efforts toward a more diverse, equitable, and inclusive workplace. This team focuses on supporting strategies and efforts to advance progress in the following categories: listening and learning, diversifying talent, creating and sponsoring opportunities, and being a force for good.

Employee Well-Being

We align our employee programs to the five elements of well-being: physical health, career, social and emotional health, financial, and community.

For more information on our efforts to support our workforce, see our latest Corporate Responsibility Report at http://columbia.com/corporate-responsibility.

AVAILABLE INFORMATION

We make available free of charge on or through the investor relations section on our website at http://investor.columbia.com/sec-filings our proxy statements, annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we file these materials with the Securities and Exchange Commission ("SEC").

The content on any website referred to in this Annual Report on Form 10-K is not incorporated by reference in this annual report unless expressly noted.

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INFORMATION ABOUT OUR EXECUTIVE OFFICERS

The following table sets forth information about our executive officers. All information is as of the date of the filing of this report.

Name	Age	Position
Timothy P. Boyle	72	Chairman, President and Chief Executive Officer
Joseph P. Boyle	41	Executive Vice President, Columbia Brand President
Peter J. Bragdon	59	Executive Vice President, Chief Administrative Officer, General Counsel, and Secretary
Lisa A. Kulok	56	Executive Vice President, Chief Supply Chain Officer
Skip Potter	51	Executive Vice President, Chief Digital Information Officer
Tim Sheerin	57	Senior Vice President, Global Wholesale
Jim A. Swanson	47	Executive Vice President, Chief Financial Officer
Craig Zanon	62	Senior Vice President, Emerging Brands

Timothy P. Boyle joined the Company in 1971 as General Manager, served as the Company's President from 1988 to 2015 and reassumed the role in 2017. Mr. Boyle has served as Chief Executive Officer since 1988. He has served as a member of the Board of Directors since 1978, and as Interim Chairman of the Board of Directors from November 2019 until his appointment as Chairman of the Board of Directors in January 2020. Mr. Boyle is also a member of the Board of Directors of Northwest Natural Holding Company (NYSE: NWN), and its subsidiary, Northwest Natural Gas Company. Mr. Boyle is a third-generation member of the Company's founding Boyle family, the father of Joseph P. Boyle, and the son of Gertrude Boyle, who served as the Chairman of the Board of Directors from 1970 until her death in 2019.

Joseph P. Boyle joined the Company in 2005 and has served in numerous roles of increasing leadership and responsibility, including General Merchandising Manager of Outerwear, Accessories, Equipment, Collegiate and Licensing, Vice President of Apparel Merchandising, and Senior Vice President of Columbia Brand Merchandising & Design. He was promoted to Executive Vice President, Columbia Brand President in 2017. Prior to joining the Company, Mr. Boyle served in a business development role for Robert Trent Jones II Golf Course Architects. Mr. Boyle is a fourth-generation member of the Company's founding Boyle family, and the son of Timothy P. Boyle.

Peter J. Bragdon joined the Company in 1999 and served as Senior Counsel and Director of Intellectual Property until January 2003. From 2003 to 2004, Mr. Bragdon served as Chief of Staff in the Oregon Governor's office. Mr. Bragdon returned to Columbia in 2004 as Vice President, General Counsel and Secretary, was named Senior Vice President of Legal and Corporate Affairs, General Counsel and Secretary in 2010 and Executive Vice President, Chief Administrative Officer, General Counsel and Secretary in 2015. In 2017, he assumed oversight of the Company's international distributor business. Prior to joining the Company, Mr. Bragdon served as an attorney in the corporate securities and finance group at Stoel Rives LLP, and Special Assistant Attorney General for the Oregon Department of Justice.

Lisa A. Kulok joined the Company in 2008 as Senior Director of Global Planning. She was promoted to Senior Vice President of Global Supply Chain Operations in 2015, was named Senior Vice President of Global Supply Chain Operations and Manufacturing in July 2020 and Executive Vice President, Chief Supply Chain Officer in November 2020. Prior to joining the Company, Ms. Kulok held various leadership positions at Nike, Inc, including USA Apparel Marketplace Planning Director and Director of Regional Planning.

Skip Potter joined the Company in 2021 as Executive Vice President, Chief Digital Information Officer. Prior to joining the Company, Mr. Potter held various leadership positions, including Chief Technology Officer and Managing Vice President of Engineering with Nike, Inc., as well as Vice President of Technology Innovation with Capital One, and CIO/CTO for British Telecommunication's Enterprise Group.

Tim Sheerin joined the Company in January 2021 as Senior Vice President, US Wholesale Sales. He was promoted to Senior Vice President, Global Wholesale in October 2021. Prior to joining the Company, Mr. Sheerin held various leadership positions at Nike, Inc., including Vice President, North America Sales, Vice President of Global Sales, Nike Sportswear and Managing Director/General Manager of Nike Korea.

Jim A. Swanson joined the Company in 2003 and has served in numerous roles of increasing responsibility during his tenure, being named Vice President of Finance in 2015 and promoted to Senior Vice President, Chief Financial Officer in 2017 and to Executive Vice President and Chief Financial Officer in 2020. Prior to joining the Company, Mr. Swanson served in a variety of financial planning and analysis, tax, and accounting roles, including senior financial analyst at Freightliner Corporation and at Tality Corporation, and as a senior tax and business advisory associate at Arthur Andersen.

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Craig Zanon joined the Company in 2021 as Senior Vice President, Emerging Brands. Prior to joining the Company, Mr. Zanon spent more than 20 years with Nike, Inc. and held various leadership roles, including Vice President and General Manager of Global Basketball, as well as Vice President of U.S. Footwear and General Manager for the Americas.

Item 1A.	RISK FACTORS

In addition to the other information contained in this Annual Report on Form 10-K, the following risk factors should be considered carefully in evaluating our business. Our business, financial condition, results of operations, or cash flows may be materially adversely affected by these and other risks. Please note that additional risks not presently known to us or that we currently deem immaterial may also impair our business and operations.

CHANGES IN PRODUCT DEMAND CAN ADVERSELY AFFECT OUR FINANCIAL RESULTS

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

These risks include, but are not limited to:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

WE ARE SUBJECT TO VARIOUS RISKS IN OUR SUPPLY CHAIN.

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

Our products are manufactured by contract manufacturers worldwide, primarily in the Asia Pacific region. Although we enter into purchase order commitments with these contract manufacturers each season, we generally do not maintain long-term manufacturing commitments with

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them, and various factors could interfere with our ability to source our products. Without long-term commitments, there is no assurance that we will be able to secure adequate or timely production capacity and our competitors may obtain production capacities that effectively limit or eliminate the availability of our contract manufacturers. If we are unable to obtain necessary production capacities, we may be unable to meet consumer demand, resulting in lost sales, as occurred in 2021.

In addition, contract manufacturers may fail to perform as expected. If a contract manufacturer fails to ship orders in a timely manner, we could experience supply disruptions that result in missed delivery deadlines, which may cause our customers to cancel their orders, refuse to accept deliveries or demand a reduction in purchase price or cause us to incur additional freight costs.

Reliance on contract manufacturers also creates quality control risks. Contract manufacturers may need to use sub-contracted manufacturers to fulfill our orders, which could result in compromised quality of our products. A failure in our quality control program, or a failure of our contract manufacturers or their subcontractors to meet our quality control standards, may result in diminished product quality, which in turn could result in increased order cancellations, price concessions, product returns, decreased consumer and customer demand for our products, non-compliance with our product standards or regulatory requirements, or product recalls or other regulatory actions.

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

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

Our products are derived from raw materials that are subject to both disruptions to supply availability and price volatility. If there are supply disruptions or price increases for raw materials we use in our products (as is currently the case) and we are unable to obtain sufficient raw materials to meet production needs or offset rising costs by increasing the price of our products or achieving efficiency improvements, we could experience negative impacts to our sales and profitability.

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

As an innovative company, some of our materials are highly technical and/or proprietary and may be available from only one source or a very limited number of sources. As a result, from time to time, we may have difficulty satisfying our material requirements. Although we believe that we can identify and qualify additional contract manufacturers to produce or supply these materials or alternative materials as necessary, there are no guarantees that additional contract manufacturers will be available. In addition, depending on the timing, any changes in sources or materials may result in increased costs or production delays.

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

The majority of our products are manufactured outside of our principal sales markets, which requires these products to be consolidated and transported, sometimes over large geographical distances. A small number of third-party logistics providers currently consolidate, deconsolidate and/or transload almost all of our products. Any disruption in the operations of these providers or changes to the costs they charge, due to capacity constraints, volatile fuel prices or otherwise, could materially impact our sales and profitability. A prolonged disruption in the operations of these providers could also require us to seek alternative distribution arrangements, which may not be available on attractive terms and could lead to delays in distribution of products, either of which could have a significant and material adverse effect on our business, results of operations and financial condition. One of our third-party logistics providers, Expeditors International of Washington Inc. (Expeditors", NASDAQ: EXPD), has announced that it was the subject of a targeted cyberattack resulting in a shut-down of systems and a limited ability to conduct operations. The impact of the Expeditors' limited ability to conduct operations on our business, results of operations and financial condition is unknown at this time.

In addition, the ability to move products over larger geographical distances could be (as is currently the case) constrained by ocean, air and trucking cargo capacity, or disrupted by limitations at ports or borders. These constraints and disruptions could hinder our ability to satisfy demand through our wholesale and DTC businesses, and we may miss delivery deadlines, which may cause our customers to cancel their orders, refuse to accept deliveries or demand a reduction in purchase price. In addition, increases in distribution costs, including but not

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limited to trucking and freight costs, could (as is currently the case) adversely affect our costs, which we may not be able to offset through price increases or decreased promotions.

We receive our products from third-party logistics providers at our owned distribution centers in the United States, Canada and France. The fixed costs associated with owning, operating and maintaining such distribution centers during a period of economic weakness or declining sales can result in lower operating efficiencies, financial deleverage and potential impairment in the recorded value of distribution assets.

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

Our ability to meet consumer and customer expectations, manage inventory, complete sales, and achieve our objectives for operating efficiencies depends on the proper operation of our existing distribution facilities, as well as the facilities of third-parties, the development or expansion of additional distribution capabilities and services, and the timely performance of services by third-parties, including those involved in moving products to and from our distribution facilities and facilities operated by third-parties.

OUR INVESTMENT IN STRATEGIC PRIORITIES EXPOSES US TO CERTAIN RISKS

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

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

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

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

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

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

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

One of our strategic priorities is to expand and improve our global DTC business operations. Accordingly, we continue to make investments in our digital capabilities and our DTC operations, including new stores. (See “Initiatives to Upgrade Our Business Processes and Information Technology Systems to Optimize Our Operational and Financial Performance Involve Many Risks Which Could Result in, Among Other Things, Business Interruptions, Higher Costs and Lost Profits”). Since many of the costs of our DTC operations are fixed, we may be unable to reduce expenses in order to avoid losses or negative cash flows if we have insufficient sales, including as a result of restrictions on operations. We may not be able to exit DTC brick and mortar locations and related leases at all or without significant cost or loss, renegotiate the terms thereof, or effectively manage the profitability of our existing brick and mortar stores. In addition, obtaining real estate and effectively renewing real estate leases for our DTC brick and mortar operations is subject to the real estate market and we may not be able to secure adequate new locations or successfully renew leases for existing locations.

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WE ARE SUBJECT TO CERTAIN INFORMATION TECHNOLOGY RISKS

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

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

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

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

We and many of our third-party vendors manage and maintain various types of proprietary information and sensitive and confidential data relating to our business, such as personally identifiable information of our consumers, our customers, our employees, and our business partners, as well as credit card information in certain instances. Unauthorized parties may attempt to gain access to these systems or information through fraud or other means of deceiving our employees or third-party service providers. The methods used to obtain unauthorized access, disable or degrade service or sabotage systems are constantly changing and evolving, and may be difficult to anticipate or detect for long periods of time. The ever-evolving threats mean we and our third-parties must continually evaluate and adapt our systems and processes, and there is no guarantee that these efforts will be adequate to safeguard against all data security breaches or misuses of data. Any breaches of our or our third-parties’ systems could expose us, our customers, our consumers, our suppliers, our employees, or other individuals that may be affected to a risk of loss or misuse of this information, result in litigation and potential liability for us, damage our reputation, or otherwise harm our business. While we maintain cyber liability insurance policies for coverage in the event of a cybersecurity incident, we cannot be certain that our existing coverage will continue to be available on acceptable terms or will be available, and in sufficient amount, to cover the potentially significant losses that could result from a cybersecurity incident or that the insurer will not deny coverage as to any future claims.

In addition, as the regulatory environment related to information security, data collection and use and privacy becomes increasingly rigorous, with new and constantly changing requirements applicable to our business, compliance with those requirements could also result in additional costs or liabilities. Non-U.S. data privacy and data security laws, various U.S. federal and state laws and other information privacy and security standards may be applicable to us. Significant legislative, judicial or regulatory changes have been and could be issued in the future. As new requirements are issued, new processes must be implemented to ensure compliance. In addition, previously implemented processes must be continually refined. This work is accomplished through significant efforts by our employees. The diverted attention of these employees may impact our operations and there may be additional costs incurred by us for third-party resources to advise on the constantly

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changing landscape. Limitations on the use of data may also impact our future business strategies. Additionally, violations of these requirements could result in significant penalties or litigation from consumers.

In June 2021, the European Commission finalized recommendations in relation to cross border data transfers and published new versions of the Standard Contractual Clauses. The new requirements may cause us to incur costs and expenses in order to comply and may impact the transfer of personal data throughout the Company and to third parties.

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

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

WE ARE SUBJECT TO LEGAL AND REGULATORY RISKS

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

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

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

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

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

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

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

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

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

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

On December 22, 2017, the United States government enacted comprehensive tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the "TCJA"). The TCJA made broad and complex changes to the United States tax code. In addition, on March 27, 2020, the United States government enacted the U.S. Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). A change in interpretation of the applicable revisions to the United States tax code and related tax accounting guidance, changes in assumptions made in developing these estimates, and regulatory guidance that may be issued with respect to the applicable revisions to the United States tax code, and state tax implications as a result of the TCJA, the CARES Act, and other recent legislation may cause actual amounts to differ from our provisional estimates. In addition, proposals to reform U.S. and foreign tax laws could significantly impact how U.S. multinational corporations are taxed on foreign earnings and could increase the U.S. corporate tax rate. Although we cannot predict whether or in what form these proposals will pass, several of the proposals considered, if enacted into law, could have an adverse impact on our effective tax rate, income tax expense and cash flows.

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

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

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

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

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

In connection with the United Kingdom's recent exit from the European Union (commonly referred to as "Brexit"), on December 24, 2020, the European Union ("E.U.") and the United Kingdom ("U.K.") reached an agreement, the E.U.-U.K. Trade and Cooperation Agreement, to govern aspects of the relationship of the E.U. and U.K. following Brexit. As a result of no longer having "free circulation" between the U.K. and

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the E.U., we may, and have incurred additional duties. These additional costs may be mitigated, to the extent we are able, to achieve favorable interpretations and/or rulings from the U.K.'s Her Majesty's Revenue and Customs.

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

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

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

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

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

WE ARE SUBJECT TO NUMEROUS OPERATIONAL RISKS

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

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

Labor Matters, Changes in Labor Laws and Our Ability to Meet Our Labor Needs May Reduce Our Revenues and Earnings.

Our business depends on our ability to source and distribute products in a timely manner. While a majority of our own operations are not subject to organized labor agreements, our relationship with our Cambrai distribution center employees is governed by French law, which includes a formal representation of employees by a Works Council and the application of a collective bargaining agreement. Matters that may affect our workforce (including COVID-19 infections or the risk thereof) at contract manufacturers where our goods are produced, shipping

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ports, transportation carriers, retail stores, or distribution centers create risks for our business, particularly if these matters result in work shut-downs (with little to no notice), slowdowns, lockouts, strikes, limitations on the number of individuals able to work (e.g. social distancing) or other disruptions. The foregoing includes potential impacts to our business as a result of the International Longshore & Warehouse Union negotiations. Labor matters may have a material adverse effect on our business, potentially resulting in canceled orders by customers, inability to fulfill potential e-commerce demand, unanticipated inventory accumulation and reduced net sales and net income.

In addition, our ability to meet our labor needs at our distribution centers, retail stores, corporate headquarters, and regional subsidiaries, including our ability to find qualified employees while controlling wage and related labor costs, is generally subject to numerous external factors, including the availability of a sufficient number of qualified people in the work force of the markets in which our operations are located, unemployment levels within those markets, absenteeism, prevailing wage rates, changing demographics, parental responsibilities, health and other insurance costs, adoption of new or revised employment and labor laws and regulations, and fear of contracting COVID-19. Our ability to source, distribute and sell products in a timely and cost-effective manner may be (and has been) negatively affected to the extent we experience these factors. Our ability to comply with labor laws, including our ability to adapt to rapidly changing labor laws, as well as provide a safe working environment may increase our risk of litigation and cause us to incur additional costs. Such risks are heightened during the COVID-19 pandemic since medical uncertainty about the virus increases the risk that safety protocols in our owned or affiliated facilities will not be effective or not be perceived as effective, or that any virus-related illnesses will be linked or alleged to be linked to such facilities, whether accurate or not.

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

Our vendors, wholesale customers, licensees and other participants in our supply chain may require access to credit markets in order to do business. Credit market conditions may slow our collection efforts as our wholesale customers find it more difficult to obtain necessary financing, leading to higher than normal accounts receivable. This could result in greater expense associated with collection efforts and increased bad debt expense. Credit conditions and/or supply chain disruptions may impair our vendors' ability to finance the purchase of raw materials or general working capital needs to support our production requirements, resulting in a delay or non-receipt of inventory shipments during key seasons.

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

Our credit agreements have various financial and other covenants. If an event of default were to occur, the lenders could, among other things, declare outstanding amounts due and payable. In addition, if the financial markets were to return to recessionary conditions, the ability of one or more of the banks participating in our credit agreement to honor their commitments thereunder could be impaired.

Acquisitions Are Subject to Many Risks.

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

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

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

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

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

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

An outbreak of disease or similar public health threat, such as the COVID-19 pandemic, could have, and in the case of the COVID-19 pandemic has had and is expected to continue to have, an adverse impact on our business, financial condition and operating results, including in the form of lowered net sales and the delay of inventory production and fulfillment in impacted regions. Fear of contracting COVID-19, individuals contracting COVID-19 and the actions taken, and that may be taken, by governmental authorities, our third-party logistics providers, our landlords, our competitors or by us relating to the COVID-19 pandemic may (and in many cases, have):

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

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

•Restrict the operation of our retail store operations and our ability to meet consumer demand at our stores (see "Labor Matters, Changes in Labor Laws and Our Ability to Meet Our Labor Needs May Reduce Our Revenues and Earnings" and "We May Not Realize Returns on Our Fixed Cost Investments in Our DTC Business Operations");

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

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

•Result in labor shortages, including as a result of any vaccine mandate or our return to work policies ("Labor Matters, Changes in Labor Laws and Our Ability to Meet Our Labor Needs May Reduce Our Revenues and Earnings");

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

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

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

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

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

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

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

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

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

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

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

Our Investment Securities May Be Adversely Affected by Market Conditions.

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

We Depend on Key Personnel.

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

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

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

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

RISKS RELATED TO OUR SECURITIES

Our Common Stock Price May Be Volatile.

Our common stock is traded on the NASDAQ Global Select Market. The size of our public float and our average daily trading volume makes the price of our common stock susceptible to large degrees of fluctuation. Factors such as general market conditions, actions by institutional investors to rapidly accumulate or divest of a substantial number of our shares, fluctuations in financial results, variances from financial

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market expectations, changes in earnings estimates or recommendations by analysts, or announcements by us or our competitors may cause the market price of our common stock to fluctuate, perhaps substantially.

Certain Shareholders Have Substantial Control Over us and Are Able to Influence Corporate Matters.

At December 31, 2021, five related shareholders, The Gertrude Boyle Trust, Sarah A. Bany, Timothy P. Boyle, Joseph P. Boyle, and Molly E. Boyle, controlled just under 50% of our common stock outstanding. Following Gertrude Boyle's death, Sarah A. Bany is serving as trustee of The Gertrude Boyle Trust, which holds the shares that were beneficially owned by Gertrude Boyle. As a result, if acting together, Sarah A. Bany, Timothy P. Boyle, Joseph P. Boyle, and Molly E. Boyle are able to exercise significant influence over all matters requiring shareholder approval. These holdings could be significantly diminished (and with them the related effective control percentage) to satisfy any applicable estate or unrealized gains tax obligations of holders.

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

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

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

ITEM 1B.	UNRESOLVED STAFF COMMENTS

None.

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| Table of Contents | | --- || ITEM 2. | PROPERTIES | | --- | --- |

The following is a summary of principal properties owned or leased by us.

Location	Use	Ownership
Portland, Oregon	Corporate Headquarters	Owned
Portland, Oregon	SOREL Headquarters	Leased/Owned (1)
Carlsbad, California	prAna Headquarters	Leased
Richmond, California	Mountain Hardwear Headquarters	Leased
Portland, Oregon	U.S. Distribution Center	Owned
Robards, Kentucky	U.S. Distribution Center	Owned
London, Ontario	Canadian Operation and Distribution Center	Owned
Geneva, Switzerland	Europe Headquarters	Leased
Strasbourg, France	Europe Administrative Operation	Owned
Cambrai, France	Europe Distribution Center	Owned
Shanghai, China	LAAP China Headquarters	Leased
Tokyo, Japan	LAAP Japan Headquarters	Leased
Seoul, Korea	LAAP Korea Headquarters	Leased

(1) A portion of the SOREL Headquarters is leased and the remainder is owned by the Company.

In addition, as of December 31, 2021, we directly operated approximately 455 retail stores, the vast majority of which are leased under a variety of arrangements, including long-term, short-term, and variable-payment leases. We also have several leases globally for office space, warehouse facilities, storage space, vehicles, and equipment, among other things. Refer to Note 9 in Item 8 of this Annual Report on Form 10-K for further lease-related disclosures.

ITEM 3.	LEGAL PROCEEDINGS

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

ITEM 4.	MINE SAFETY DISCLOSURES

Not applicable.

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| Table of Contents | | --- || PART II | | --- | | Item 5. | MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | | --- | --- |

MARKET INFORMATION

Our common stock is traded on the NASDAQ Global Select Market under the symbol "COLM."

HOLDERS

At February 11, 2022, we had 262 shareholders of record, although we have a much larger number of beneficial owners, whose shares of record are held by banks, brokers and other financial institutions

DIVIDENDS

Our current dividend policy is dependent on our earnings, capital requirements, financial condition, restrictions imposed by our credit agreements, and other factors considered relevant by our Board of Directors. Quarterly dividends on our common stock, when declared by our Board of Directors, are paid in March, May, August, and November.

Our Board of Directors approved a quarterly cash dividend of $0.30 per share, payable on March 21, 2022 to shareholders of record on March 11, 2022.

PERFORMANCE GRAPH

The line graph below compares the cumulative total shareholder return of our common stock with the cumulative total return of the Russell 1000 Index and Russell 1000 Textiles Apparel and Shoes Index for the period beginning December 31, 2016 and ending December 31, 2021. The graph and table assume that $100 was invested on December 31, 2016, and that any dividends were reinvested. Historical stock price performance should not be relied on as indicative of future stock price performance.

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Total Return Analysis

	Year Ended December 31,
	2016		2017		2018		2019		2020		2021
Columbia Sportswear Company	$	100.00	$	124.86	$	147.61	$	177.65	$	155.49	$	175.13
Russell 1000 Index	$	100.00	$	121.69	$	115.87	$	152.28	$	184.20	$	232.93
Russell 1000 Textiles Apparel and Shoes Index	$	100.00	$	123.55	$	126.99	$	174.11	$	217.14	$	240.70

ISSUER PURCHASES OF EQUITY SECURITIES

Since the inception of our share repurchase program in 2004 through December 31, 2021, our Board of Directors has authorized the repurchase of $1.5 billion of our common stock. Shares of our common stock may be purchased in the open market or through privately negotiated transactions, subject to market conditions, and generally settle subsequent to the trade date. The repurchase program does not obligate us to acquire any specific number of shares or to acquire shares over any specified period of time. Under this program as of December 31, 2021, we had repurchased 28.5 million shares at an aggregate purchase price of $1,183.7 million, and had $316.3 million remaining available.

The following is a summary of our common stock repurchases during the quarter ended December 31, 2021:

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs <br>(in millions)
October 1, 2021 through October 31, 2021	313,779	$	95.67	313,779	$	325.0
November 1, 2021 through November 30, 2021	31,301	$	102.70	31,301	$	321.8
December 1, 2021 through December 31, 2021	56,246	$	97.38	56,246	$	316.3
Total	401,326	$	96.46	401,326	$	316.3
ITEM 6.	[Reserved]
---	---

Part II, Item 6 of this Annual Report on Form 10-K is no longer required.

ITEM 7.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with "Special Note Regarding Forward Looking Statements", Item 1, Item 1A, and Item 8 of this Annual Report on Form 10-K. In addition, refer to Item 7 in our Annual Report on Form 10-K for the year ended December 31, 2020 for our discussion and analysis comparing financial condition and results of operations from 2020 to 2019.

OVERVIEW

We connect active people with their passions. We are a global leader in designing, developing, marketing, and distributing outdoor, active and everyday lifestyle products. We manage these products in two categories: apparel, accessories, and equipment products and footwear products. We provide our products through our four well-known brands, Columbia, SOREL, Mountain Hardwear, and prAna. Apparel, accessories, and equipment products are provided by our Columbia, Mountain Hardwear and prAna brands. Footwear products are provided by our Columbia and SOREL brands. We sell our products in approximately 90 countries and operate in four geographic segments: U.S., LAAP, EMEA, and Canada.

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We are committed to driving sustainable and profitable long-term growth and investing in our strategic priorities to:

•drive brand awareness and sales growth through increased, focused demand creation investments;

•enhance consumer experience and digital capabilities in all of our channels and geographies;

•expand and improve global DTC operations with supporting processes and systems; and

•invest in our people and optimize our organization across our portfolio of brands.

Ultimately, we expect our investments to enable market share capture across our brand portfolio, expand gross margin, improve selling, general and administrative expense efficiency, and drive improved operating margin over the long-term.

Business Environment and Trends

Increased Outdoor Participation by Consumers | The COVID-19 pandemic drew a record number of individuals in the United States to spend an increased amount of time outside, including participating in outdoor recreational activities. While outdoor participation rates may not be maintained, we believe that our addressable consumer base worldwide has been expanded and expect outdoor participation to remain elevated in comparison to pre-pandemic levels.

Casualization of the Apparel and Footwear Market | During the COVID-19 pandemic, we saw a move to casualization by consumers. Our products provide comfort and function in diverse environments. We believe we have benefited from this trend and expect it to continue to be a tailwind moving forward.

Decreased Promotional Environment | In 2021, we operated in an extremely low promotional environment and experienced fewer order cancellations, sales returns and customer accommodations than historically experienced. We expect these trends to remain favorable in early 2022 and expect a gradual return to a more normalized promotional environment and a potential transition towards more normalized trading terms. For 2022, we do not expect these metrics to return to levels experienced in 2019 and prior years.

Lean Inventory Across the Marketplace | Consumer demand accelerated in 2021 resulting in lower inventory in the marketplace. Lower marketplace inventories contributed to a full price selling environment resulting in lower promotional activity and higher gross margins for our business in 2021. Given ongoing supply chain disruptions and the imbalance between global supply and demand, we expect marketplace inventories to remain low until supply chain constraints ease and retailers are able to replenish diminished inventory levels.

Changes in Consumer Spending Ability and Preferences | We believe government stimulus and unemployment benefits increased consumers’ discretionary spending ability in 2021 and 2020. In addition, we believe the limited ability to travel, attend entertainment-based experiences or purchase certain services increased consumers' savings levels. As we move into 2022, we expect these tailwinds to diminish. However, we expect growth in wages will enable consumer spending, to the extent it more than offsets inflationary pressures.

Decreased Direct-to-Consumer Store Traffic | During 2021, the majority of our stores remained open. At varying times during the year, government efforts to control the spread of COVID-19 impacted our stores in various regions. Our stores in Europe and Canada were impacted by these government efforts for most of the first quarter and at varying times in the second quarter of 2021. Declared states of emergency impacted our stores in Japan in the first, second and third quarters. Our stores in China were also impacted by these government efforts at varying times during 2021. Overall, our store retail traffic trends improved during 2021, but remained below pre-pandemic levels. Certain stores in tourist-dependent locations continue to be impacted by limited international tourism. While store traffic is improving, we expect it to continue to remain uneven across our store fleet by region, depending on regional impacts of the virus and government efforts.

Increased Ocean Freight Charges | In 2021, we experienced elevated ocean freight charges as a result of an imbalance of supply and demand for steamship and ocean container capacity and changes in our ocean freight sourcing practices. We expect our ocean freight charges to be reduced in the latter part of 2022. However, the imbalance in the marketplace persists and ocean freight costs will remain elevated compared to historical norms.

Later Inventory Receipts | During the third quarter of 2021, government mandated factory closures in Vietnam disrupted our manufacturing partners' operations and impacted production of Fall 2021 and Spring 2022 product. Factories in Vietnam began to reopen as of October 1, 2021 at less than full capacity. In addition, port congestion and shortages in transportation and labor further slowed the transportation of our inventory. As a result of these supply chain disruptions, we received Fall 2021 inventory later than expected and anticipate similar delays for Spring 2022 inventory. We do not expect the supply chain to normalize in 2022 and continue to anticipate later than expected inventory receipts and shipments to our wholesale customers and inventory available for our DTC businesses in 2022, resulting in impacts to future net sales and gross margin.

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Manufacturing Capacity Constraints | In 2021, we experienced footwear manufacturing capacity constraints which prevented us from securing footwear product to meet demand. Although we are growing footwear manufacturing capacity in 2022, we again expect demand to outstrip capacity due to anticipated footwear sales growth rates. We anticipate being able to meet footwear demand with appropriate supply in 2023.

Continued Labor Shortages | We have and continue to experience U.S. labor shortages, affecting our ability to staff and operate our U.S. distribution centers, retail stores and consumer call centers, as well as find qualified employees for our corporate offices and regional subsidiaries. In addition, labor costs have risen recently as a result of competition to attract and retain qualified talent in an environment in which there is low unemployment and strong demand for employees. We anticipate these rising costs and labor shortages to continue in 2022.

Increased Inflationary Pressures | Inflationary pressures, including increased inbound freight costs, impacted our results in 2021. In addition to increased inbound freight costs, we expect increased product input costs, including higher wages and raw materials costs, to impact our results in 2022. We are implementing product price increases beginning with our Spring 2022 season and, to a greater extent, our Fall 2022 season to mitigate these higher costs, to the extent possible, while attempting to minimize potential risks of dampening consumer demand. Price increases varied by market and product category. In the U.S., on average, we increased pricing by a mid-single digit percent for our Spring 2022 product line and a high-single to low-double-digit percent for our Fall 2022 product line. We do not expect planned price increases will fully offset gross margin pressure, particularly the effect of increased ocean freight costs. Looking beyond 2022, we anticipate ocean freight and raw material cost inflation will be transitory, while wage inflation will be more permanent.

Changing Consumer Expectations | Consumer behavior continues to fluctuate. Consumer expectations and the related competitive pressures have increased and continue to increase related to various aspects of our e-commerce business, including speed of product delivery, shipping charges, return privileges and other evolving expectations. We maintain and continue to make substantial investments in information systems, processes and personnel to support our ongoing demand planning efforts to provide forecasting of optimal inventory to meet customer and consumer demands.

Seasonality | Our business is affected by the general seasonal trends common to the industry, including seasonal weather and discretionary consumer shopping and spending patterns. Our products are marketed on a seasonal basis, and our sales are weighted substantially toward the third and fourth quarters, while our operating costs are more equally distributed throughout the year. In 2021, over 60% of our net sales and over 75% of our operating income were realized in the second half of the year.

RESULTS OF OPERATIONS

The following discussion of our results of operations and liquidity and capital resources should be read in conjunction with Item 8 of this Annual Report on Form 10-K. All references to years relate to the fiscal year ended December 31.

Non-GAAP Financial Measure

To supplement financial information reported in accordance with accounting principles generally accepted in the United States ("GAAP"), we disclose constant-currency net sales information, which is a non-GAAP financial measure, to provide a framework to assess how the business performed excluding the effects of changes in foreign currency exchange rates against the United States dollar between comparable reporting periods. We calculate constant-currency net sales by translating net sales in foreign currencies for the current period into United States dollars at the exchange rates that were in effect during the comparable period of the prior year. Management believes that this non-GAAP financial measure reflects an additional and useful way of viewing an aspect of our operations that, when viewed in conjunction with our GAAP results, provides a more comprehensive understanding of our business and operations. In particular, investors may find the non-GAAP measure useful by reviewing our net sales results without the volatility in foreign currency exchange rates. This non-GAAP financial measure also facilitates management's internal comparisons to our historical net sales results and comparisons to competitors' net sales results. Constant-currency financial measures should be viewed in addition to, and not in lieu of or superior to, our financial measures calculated in accordance with GAAP.

The following discussion includes references to constant-currency net sales, and we provide a reconciliation of this non-GAAP measure to the most directly comparable financial measure calculated in accordance with GAAP below.

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Results of Operations — Consolidated

Year Ended December 31, 2021 Compared to Year Ended December 31, 2020

The following table presents the items in our Consolidated Statements of Operations, both in dollars and as a percentage of net sales:

	Year Ended December 31,
(in millions, except for percentage of net sales and per share amounts)	2021				2020
Net sales	$	3,126.4	100.0	%	$	2,501.6	100.0	%
Cost of sales	1,513.9		48.4	%	1,277.7		51.1	%
Gross profit	1,612.5		51.6	%	1,223.9		48.9	%
Selling, general and administrative expenses	1,180.3		37.8	%	1,098.9		43.9	%
Net licensing income	18.3		0.6	%	12.0		0.5	%
Operating income	450.5		14.4	%	137.0		5.5	%
Interest income, net	1.4		—	%	0.4		—	%
Other non-operating income (expense), net	(0.4)		—	%	2.1		0.1	%
Income before income tax	451.5		14.4	%	139.5		5.6	%
Income tax expense	(97.4)		(3.1)	%	(31.5)		(1.3)	%
Net income	$	354.1	11.3	%	$	108.0	4.3	%
Diluted earnings per share	$	5.33			$	1.62

Net Sales. Net sales by brand, product category and channel are summarized in the following table:

	Year Ended December 31,
(in millions, except for percentages)	Reported<br><br>Net Sales<br><br>2021		Adjust for Foreign Currency Translation		Constant-currency<br><br>Net Sales<br><br>2021 (1)		Reported<br><br>Net Sales<br><br>2020		Reported <br>Net Sales<br>% Change	Constant-currency<br><br>Net Sales<br><br>% Change(1)
Brand Net Sales:
Columbia	$	2,557.4	$	(26.4)	$	2,531.0	$	1,996.9	28%	27%
SOREL	320.9		(2.4)		318.5		293.5		9%	9%
prAna	141.9		—		141.9		131.6		8%	8%
Mountain Hardwear	106.2		(0.5)		105.7		79.6		33%	33%
Total	$	3,126.4	$	(29.3)	$	3,097.1	$	2,501.6	25%	24%
Product Category Net Sales:
Apparel, Accessories and Equipment	$	2,389.2	$	(20.3)	$	2,368.9	$	1,867.6	28%	27%
Footwear	737.2		(9.0)		728.2		634.0		16%	15%
Total	$	3,126.4	$	(29.3)	$	3,097.1	$	2,501.6	25%	24%
Channel Net Sales:
Wholesale	$	1,660.4	$	(19.5)	$	1,640.9	$	1,403.3	18%	17%
DTC	1,466.0		(9.8)		1,456.2		1,098.3		33%	33%
Total	$	3,126.4	$	(29.3)	$	3,097.1	$	2,501.6	25%	24%

(1) Constant-currency net sales is a non-GAAP financial measure. See "Non-GAAP Financial Measure" above for further information.

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Overall, our global net sales increase reflects the higher consumer demand and economic recovery from the ongoing COVID-19 pandemic. This increase was constrained by supply chain disruptions that limited factory capacities for footwear products and resulted in later inventory receipts and lower than expected wholesale shipments.

Net sales increased across all regions, primarily driven by increased Columbia brand net sales which benefited from robust consumer demand, lapping of 2020 DTC store closures, and increased orders from wholesale customers following lower sales volumes in 2020 due to order cancellations in response to the COVID-19 pandemic. During 2021, our global DTC e-commerce business grew 20% and represented 18% of our global net sales, including fourth quarter 2021 growth of 25% year-over-year and represented 23% of our global net sales. In 2020, our global DTC e-commerce business grew 39% and represented 19% of global net sales.

Gross Profit. Our gross profit may not be comparable to other companies in our industry as some companies may include all costs related to their distribution network in Cost of sales, while we include these expenses in SG&A expense. Gross profit is summarized in the following table:

	Year Ended December 31,
(in millions, except for percentages and basis points)	2021			2020			Change
Gross profit	$	1,612.5		$	1,223.9		$	388.6	32	%
Gross margin	51.6		%	48.9		%	270 bps

Gross profit as a percentage of net sales expanded primarily due to:

•an approximate 230 bps increase in channel profitability substantially due to higher DTC product margins reflecting lower promotional levels and, to a lesser extent, higher wholesale product margin driven by strong retail sell-through performance resulting in a higher proportion of full price vs off price sales mix and lower customer accommodations, partially offset by unfavorable impacts from higher inbound freight costs due to supply chain constraints; and

•favorable impacts from lower year-over-year inventory provisions.

Selling, General and Administrative Expenses. SG&A expenses includes all costs associated with our design, merchandising, marketing, distribution, and corporate functions, including related depreciation and amortization.

SG&A expenses is summarized in the following table:

	Year Ended December 31,
(in millions, except for percentages and basis points)	2021			2020			Change
Selling, general and administrative expenses	$	1,180.3		$	1,098.9		$	81.4	7	%
Selling, general and administrative expenses as percent of net sales	37.8		%	43.9		%	-610 bps

The SG&A expenses increase was primarily due to expenses incurred to support the growth of our business and its recovery from the COVID-19 impacts from 2020. During 2021, we spent approximately 5.9% of our net sales for demand creation, compared to 5.7% in 2020. In addition, depreciation and amortization included in SG&A expenses totaled $55.5 million, compared to $63.0 million in 2020.

Factors contributing to the increase of SG&A expenses included:

•higher global retail expenses of $51.8 million relative to prior year temporary store closures;

•increased demand creation spend of $43.6 million;

•higher personnel expenses of $37.6 million to support business growth as well as annual merit and other wage rate increases;

•higher incentive compensation of $31.1 million; and

•higher professional fees and insurance; partially offset by

•decreased retail impairments and store closures charges of $37.4 million, reflecting the non-recurrence of prior year retail impairments and store closure charges of $28.8 million and the 2021 benefit of $8.6 million from the completion of lease terminations and settlements related to certain of those closures;

•decreased bad debt expenses of $29.7 million, which primarily reflected the non-recurrence of a 2020 bad debt expense increase of $19.7 million resulting from the COVID-19 pandemic;

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•the non-recurrence of prior year expenses of $18.9 million related to the COVID-19 pandemic; and

•the non-recurrence of prior year prAna brand trademark impairment charge of $17.5 million.

Income Tax Expense. Income tax expense and the related effective income tax rate is summarized in the following table:

	Year Ended December 31,
(in millions, except for percentages)	2021			2020			Change
Income tax expense	$	(97.4)		$	(31.5)		$	(65.9)	209	%
Effective income tax rate	21.6		%	22.6		%

Our effective income tax rates for the years ended December 31, 2021 and 2020 were impacted by discrete tax items, which lowered the effective tax rate each year. Our effective income tax rate for the year ended December 31, 2021 decreased, compared to 2020, primarily due to the non-recurring benefit of a decrease in accrued foreign withholding taxes as well as the change in mix of book income or loss among jurisdictions.

Results of Operations — Segment

Year Ended December 31, 2021 Compared to Year Ended December 31, 2020

Segment income from operations includes net sales, cost of sales, SG&A expense, and net licensing income for each of our four reportable geographic segments. Income from operations as a percentage of net sales in the U.S. is typically higher than the other segments primarily due to scale efficiencies associated with the larger base of net sales in the U.S. and, to a lesser extent, incremental licensing income.

We anticipate this trend to continue until other segments achieve scale efficiencies from higher levels of net sales volume relative to the fixed cost structure necessary to operate the business.

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

	Year Ended December 31,
(in millions, except for percentage changes)	Reported<br><br>Net Sales<br><br>2021		Adjust for Foreign Currency Translation		Constant-currency<br><br>Net Sales<br><br>2021 (1)		Reported<br><br>Net Sales<br><br>2020		Reported <br>Net Sales<br>% Change	Constant-currency<br><br>Net Sales<br><br>% Change(1)
U.S.	$	2,060.3	$	—	$	2,060.3	$	1,603.8	28%	28%
LAAP	465.5		(7.5)		458.0		424.5		10%	8%
EMEA	382.1		(9.0)		373.1		298.9		28%	25%
Canada	218.5		(12.8)		205.7		174.4		25%	18%
	$	3,126.4	$	(29.3)	$	3,097.1	$	2,501.6	25%	24%

(1) Constant-currency net sales is a non-GAAP financial measure. See "Non-GAAP Financial Measure" above for further information.

Operating income for each reportable segments and unallocated corporate expenses are summarized in the following table:

	Year Ended December 31,
(in millions)	2021		2020		Change
U.S.	$	536.5	$	250.5	$	286.0
LAAP	42.0		35.9		6.1
EMEA	65.5		31.2		34.3
Canada	52.7		37.6		15.1
Total segment operating income	696.7		355.2		341.5
Unallocated corporate expenses	(246.2)		(218.2)		(28.0)
Operating income	$	450.5	$	137.0	$	313.5

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Unless otherwise noted below, segment net sales and operating income within all regions increased due to higher consumer demand and the recovery from the COVID-19 pandemic impacts from 2020. In 2020, unfavorable COVID-19 pandemic impacts led to economic lockdowns, including temporary store closures and lower consumer demand.

U.S. U.S. income from operations increased $286.0 million to $536.5 million, or 26.0% of net sales, in 2021 from $250.5 million, or 15.6% of net sales, in 2020. The increase was driven primarily by increased net sales, increased gross margins, and the non-recurrence of prior year retail impairments and store closure charges of $28.8 million and the 2021 benefit of $8.6 million from settlements related to those closures. U.S. net sales increased $456.5 million, or 28% in 2021 compared to $1,603.8 million in 2020. U.S. net sales increased in our DTC and wholesale businesses. U.S DTC net sales increased largely from net sales growth generated from retail stores, and to a lesser extent, our e-commerce business. At December 31, 2021, our U.S. business operated 142 retail stores, compared to 132 stores at December 31, 2020. SG&A expenses decreased as a percentage of net sales to 26.7% in 2021 compared to 33.8% in 2020 largely due to the impact of net sales increases, and the non-recurrence of prior year retail impairments, other store closure charges and COVID-19 related expenses.

LAAP. LAAP income from operations increased $6.1 million to $42.0 million, or 9.0% of net sales, in 2021 from $35.9 million, or 8.5% of net sales, in 2020. The increase was driven primarily by increased net sales combined with increased gross margin. LAAP net sales increased $41.0 million, or 10% (8% constant-currency) in 2021 compared to $424.5 million in 2020, driven largely by increased net sales in our China business, and to a lesser extent, our Korea business, partially offset by decreased net sales in our LAAP distributors and Japan businesses. LAAP SG&A expense increased as a percentage of net sales to 48.3% in 2021 compared to 45.7% in 2020 largely due to incremental demand creation expense, partially offset by the impact of net sales increases.

EMEA. EMEA income from operations increased $34.3 million to $65.5 million, or 17.1% of net sales, in 2021 from $31.2 million, or 10.4% of net sales, in 2020. The increase was driven primarily by increased net sales combined with increased gross margin. EMEA net sales increased $83.2 million, or 28% (25% constant-currency) in 2021 compared to $298.9 million in 2020. EMEA net sales increased primarily in our Europe-direct business, followed by our EMEA distributor business. EMEA SG&A expense decreased as a percentage of net sales to 28.0% in 2021 compared to 33.4% in 2020 largely due to the impact of net sales increases and the non-recurrence of prior year COVID-19 related expenses.

Canada. Canada income from operations increased $15.1 million to $52.7 million, or 24.1% of net sales, in 2021 from $37.6 million, or 21.6% of net sales, in 2020. The increase primarily resulted from increased net sales combined with increased gross margin. Canada net sales increased $44.1 million, or 25% (18% constant-currency) in 2021 compared to $174.4 million in 2020, primarily driven by increased net sales in our Canada wholesale business, followed by our Canada DTC businesses. Canada SG&A expense decreased as a percentage of net sales to 24.0% in 2021 compared to 25.6% for 2020 largely due to the impact of net sales increases and the non-recurrence of prior year COVID-19 related expenses.

Unallocated corporate expenses increased by $28.0 million to $246.2 million in 2021, from $218.2 million in 2020, largely driven by higher incentive compensation and personnel expenses, partially offset by the non-recurrence of the 2020 prAna brand trademark impairment charge of $17.5 million.

LIQUIDITY AND CAPITAL RESOURCES

Including cash, cash equivalents, short-term investments and available committed and uncommitted credit lines, we had more than $1.5 billion in total liquidity at December 31, 2021. Our liquidity may be affected by the general seasonal trends common to the industry. Our products are marketed on a seasonal basis and our sales are weighted substantially toward the third and fourth quarters, while our operating costs are more equally distributed throughout the year. Our cash and cash equivalents and short-term investments balances generally are at their lowest level at the end of the third quarter and increase during the fourth quarter from collection of wholesale business receivables and fourth quarter DTC sales.

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Cash Flow Activities

Cash flows from continuing operations are summarized in the following table:

	Year Ended December 31,
(in millions)	2021		2020		Change
Cash and cash equivalents	$	763.4	$	790.7	$	(27.3)
Net cash provided by (used in):
Operating activities	$	354.4	$	276.1	$	78.3
Investing activities	(163.8)		(27.2)		(136.6)
Financing activities	(210.9)		(151.7)		(59.2)
Net effect of exchange rate changes on cash	(7.0)		7.5		(14.5)
Net increase (decrease) in cash and cash equivalents	$	(27.3)	$	104.7	$	(132.0)

The change in cash flows provided by operating activities was driven by a $157.8 million increase in net income and non-cash adjustments, partially offset by a $79.5 million increase in cash used in changes in assets and liabilities. The most significant comparative changes included Inventories, net, Accounts payable, Accrued liabilities, Prepaid expenses and other current assets, Accounts receivable, and Operating lease assets and liabilities. The $165.1 million increase in cash used in Inventories, net was mainly driven by an increase in inventory purchases reflecting strong consumer demand. The $124.8 million increase in cash provided by Accounts payable primarily reflects the effects of higher receipts of inventory in the fourth quarter of 2021 compared to the fourth quarter of 2020 due to stronger customer demand and increased in-transit inventory. The $118.6 million increase in cash provided by Accrued liabilities was primarily driven by changes in accruals for incentive compensation as well as DTC return liabilities. The $58.6 million increase in cash used in Prepaid expenses and other assets was primarily driven by changes in inventory prepayments and U.S. prepaid income taxes. The $54.5 million increase in cash used in Accounts receivable was driven by higher wholesale net sales, partially offset by higher collections in 2021. The $33.1 million increase in cash used in Operating lease assets and liabilities was primarily due to payment of deferred rents and lease termination fees.

Net cash used in investing activities was $163.8 million for 2021 compared to $27.2 million for 2020. For 2021, net cash used in investing activities consisted of $129.1 million in net purchases of short-term investments and $34.7 million for capital expenditures. For 2020, net cash used in investing activities primarily consisted of $28.8 million for capital expenditures.

Net cash used in financing activities was $210.9 million for the 2021 compared to $151.7 million for 2020. For 2021, net cash used in financing activities primarily consisted of repurchases of common stock of $165.4 million and dividend payments to our shareholders of $68.6 million, partially offset by net proceeds from the issuance of common stock related to stock-based compensation of $23.0 million. For 2020, net cash used in financing activities primarily consisted of repurchases of common stock of $132.9 million and dividend payments to our shareholders of $17.2 million.

Sources of Liquidity

Cash and cash equivalents and short-term investments

At December 31, 2021, we had cash and cash equivalents of $763.4 million and short-term investments of $131.1 million, compared to $790.7 million and $1.2 million, respectively, at December 31, 2020.

Domestic Credit Facility

We have available an unsecured, committed revolving credit facility that provides for funding up to $500.0 million. This credit agreement matures on December 30, 2025. Interest, payable monthly, is based on the Company's option of either LIBOR plus an applicable margin or a base rate. Base rate is defined as the highest of the following, plus an applicable margin:

•the administrative agent's prime rate;

•the higher of the federal funds rate or the overnight bank funding rate set by the Federal Reserve Bank of New York, plus 0.50%; or

•the one-month LIBOR plus 1.00%.

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This credit agreement requires the Company to comply with certain financial covenants covering the Company's funded debt ratio and asset coverage ratio. The credit agreement also includes customary covenants that, among other things, limit or restrict the ability of the Company and its subsidiaries to incur additional indebtedness and liens, engage in mergers, acquisitions and dispositions, and engage in transactions with affiliates, as well as restrict certain payments, including dividends and share buybacks.

At December 31, 2021, there was no balance outstanding under our credit facility. At the time of this filing, we are in compliance with all financial covenants necessary as a condition for borrowing under the Columbia Sportswear Company credit agreement.

International Credit Facilities

Our European subsidiary has available an unsecured, committed line of credit, which is guaranteed by the Company and provides for borrowing up to €4.4 million (approximately US$5.0 million). Borrowings accrue interest at a base rate plus 75 basis points.

In addition, collectively, our international subsidiaries have available approximately US$111.7 million in unsecured and uncommitted lines of credit and overdraft facilities.

At December 31, 2021, there was no balance outstanding under our international subsidiaries' lines of credit and overdraft facilities.

Capital Requirements

Our expected short-term and long-term cash needs are primarily for working capital and capital expenditures. We expect to meet these short-term and long-term cash needs primarily with cash flows from operations and, if needed, borrowings from our existing domestic credit facility.

Our working capital management goals include maintaining an optimal level of inventory necessary to deliver goods on time to our customers and our retail stores to satisfy end consumer demand, alleviating manufacturing capacity constraints, and driving efficiencies to minimize the cycle time from the purchase of inventory from our suppliers to the collections of accounts receivable balances from our customers. We maintain and continue to make substantial investments in information systems, processes and personnel to support our ongoing demand planning efforts to meet our working capital management goals.

We have planned 2022 capital expenditures of approximately $80 to $100 million. This includes investments in our digital and supply chain capabilities to support our strategic priorities and our DTC operations, including new stores. Our actual planned capital expenditures may differ from the planned amounts depending on factors such as the timing of system implementations and new store openings and related construction as well as the availability of capital assets from suppliers.

Our long-term goal is to maintain a strong balance sheet and a disciplined approach to capital allocation. Dependent upon market conditions and our strategic priorities, our capital allocation approach includes:

•investing in organic growth opportunities to drive long-term profitable growth;

•returning 40% of free cash flow to shareholders through dividends and share repurchases; and

•considering opportunistic mergers and acquisitions.

Free cash flow is a non-GAAP financial measure. Free cash flow is calculated by reducing net cash flow from operating activities by capital expenditures. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures. Management uses free cash flow as a measure to assess both business performance and overall liquidity.

Other cash commitments

Our non-current Income taxes payable on the Consolidated Balance Sheet at December 31, 2021 includes approximately $13.7 million of net unrecognized tax benefits. We are uncertain about whether or when these amounts may be settled. Refer to Note 10 in Item 8 of this Annual Report on Form 10-K for additional information.

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The following table presents our estimated significant contractual commitments that will require use of funds:

	Year ended December 31,
(in millions)	2022		2023		2024		2025		2026		Thereafter		Total
Inventory purchase obligations	$	656.5	$	—	$	—	$	—	$	—	$	—	$	656.5
Operating lease obligations (1)	78.2		72.5		65.7		55.8		49.1		106.3		427.6
TCJA transition tax obligations (2)	4.2		8.0		10.6		13.3		—		—		36.1

(1) Refer to Operating Leases in Note 9 in Item 8 of this Annual Report on Form 10-K.

(2) Refer to Income Taxes in Note 10 in Item 8 of this Annual Report on Form 10-K.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management's discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make various estimates and judgments that affect reported amounts of assets, liabilities, sales, cost of sales, and expenses and related disclosure of contingent assets and liabilities. Refer to Note 2 in Item 8 of this Annual Report on Form 10-K for additional information regarding the significant accounting policies and methods used in the preparation of our consolidated financial statements.

We believe that the estimates, assumptions and judgments involved in the accounting policies described below have the greatest potential effect on our financial statements, so we consider these to be our critical accounting policies and estimates. Because of the uncertainty inherent in these matters, actual results may differ from the estimates we use in applying these critical accounting policies and estimates. We base our ongoing estimates on historical experience and other assumptions that we believe to be reasonable in the circumstances. Our critical accounting policies and estimates relate to sales reserves, allowance for uncollectible accounts receivable, excess, close-out and slow-moving inventory, impairment of long-lived assets, intangible assets and goodwill, and income taxes.

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

Sales Reserves

The amount of consideration we receive and recognize as Net sales across both wholesale and DTC channels varies with changes in sales returns and other accommodations and incentives we offer to our customers. When we give our customers the right to return products or provide other accommodations such as chargebacks and markdowns, we estimate the expected sales returns and miscellaneous claims from customers and record sales reserves to reduce Net sales. At December 31, 2021, our sales related reserves were $99.0 million compared to $83.2 million at December 31, 2020. The most significant variable affecting these reserve balances is net sales levels. As a percent of Net sales, the sales reserves balances were 3.2% at December 31, 2021 compared to 3.3% at December 31, 2020. The reserve for returns from customers or consumers is the most susceptible to estimation uncertainty. These estimates are based on 1) historical rates of product returns and claims; and 2) events and circumstances that indicate changes to such historical rates, such as our customers' net inventory positions and their anticipated sell-through rates. However, actual returns and claims in any future period are inherently uncertain and thus may differ from the estimates. As a result, we adjust our estimates of revenue at the earlier of when the most likely amount of consideration we expect to receive changes or when the amount of consideration becomes fixed. If actual or expected future returns and claims are significantly different than the sales reserve established, we record an adjustment to Net sales in the period in which such determination was made.

Allowance for Uncollectible Accounts Receivable

We make ongoing estimates of the collectability of our accounts receivable and maintain an allowance for estimated credit losses resulting from the inability of our customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. In determining the amount of the allowance, we consider our historical level of credit losses, as well as our judgments about the creditworthiness of customers based on ongoing credit evaluations. We analyze specific customer accounts, including aged receivables,

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customer concentrations, credit insurance coverage, standby letters of credit, and other forms of collateral, current economic trends, and changes in customer payment terms.

Our allowance for uncollectible accounts receivable decreased to $8.9 million at December 31, 2021 compared to $21.8 million at December 31, 2020. The balance at December 31, 2021 compared to the prior year reflects an improving credit environment with wholesale customers during 2021 and economic recovery of the retail sector through the ongoing COVID-19 pandemic. Continued uncertainty in credit and market conditions may slow our collection efforts if customers experience difficulty accessing credit and paying their obligations, leading to higher than normal accounts receivable and increased bad debt risk. Because future changes in the financial stability of our customers is difficult to estimate, actual future losses from uncollectible accounts may differ from our estimates and may have a material effect on our financial position, results of operations or cash flows. If the financial condition of our customers deteriorates and results in their inability to make payments, a larger allowance may be required. If we determine that a smaller or larger allowance is appropriate, we will record an adjustment to SG&A expense in the period in which we make such a determination.

Excess, Close-Out and Slow-Moving Inventory

We make ongoing estimates of potential excess, close-out or slow-moving inventory. We evaluate our inventory on hand to identify excess, close-out or slow-moving inventory by contemplating our 1) purchase commitments; 2), sales forecasts; 3) historical liquidation experience; and 4) the level of inventory from current and prior seasons that remains unsold and establish provisions as necessary to properly reflect inventory value at the lower of cost or net realizable value. Provisions are established when necessary in the period in which we make such a determination. At December 31, 2021, our inventory reserve offset gross inventory by $19.9 million compared to $29.5 million at December 31, 2020. Although Inventories, net increased 16% from December 31, 2020 to December 31, 2021, the level of estimated excess inventory at December 31, 2021 declined reflecting strong consumer demand resulting in a lower inventory reserve.

Impairment of Long-Lived Assets, Intangible Assets and Goodwill

Long-lived assets, which include property, plant and equipment, lease right-of-use ("ROU") assets, capitalized implementation costs for cloud computing arrangements, and intangible assets with finite lives are measured for impairment only when events or circumstances indicate the carrying value may not be recoverable. Our retail fleet long‐lived assets are evaluated at the retail location level. Events that result in an impairment review of a retail location include plans to close a retail location or a significant decrease in the operating results of the retail location. When such an indicator occurs, we evaluate retail location long‐lived assets for impairment by comparing the undiscounted future cash flow expected to be generated by the location to the location long‐lived asset’s carrying amount. If the carrying amount of an asset exceeds the estimated undiscounted future cash flow, an analysis is performed to estimate the fair value of the asset. An impairment is recorded if the fair value of the retail location long‐lived asset is less than the carrying amount.

During 2021 we tested certain long-lived assets consisting of property, plant, and equipment and lease ROU assets for impairment at certain underperforming retail locations. For the year ended December 31, 2021, impairment charges from underperforming retail stores were not material. Further declines in projected future performance may adversely affect the recovery of retail locations assets. For the year ended December 31, 2020, impairment charges from underperforming retail stores were $7.0 million for lease ROU assets and $5.0 million for property, plant and equipment.

We review and test our intangible assets with indefinite lives and goodwill for impairment in the fourth quarter of each year and when events or changes in circumstances indicate that the carrying amount of such assets may be impaired. Our intangible assets with indefinite lives consist of trademarks and trade names. Substantially all of our goodwill is recorded in the U.S. segment and impairment testing for goodwill is performed at the reporting unit level. Our 2021 impairment tests of intangible assets with indefinite lives and goodwill indicated the fair value of all reporting units and intangible assets with indefinite lives exceeded their respective carrying values.

In the impairment tests for trademarks and trade names, we compare the estimated fair value of each asset to its carrying amount. The fair values of trademarks and trade names are estimated using a relief from royalty method under the income approach. If the carrying amount of a trademark or trade name exceeds its estimated fair value, we calculate impairment as the excess of carrying amount over the estimate of fair value. At December 31, 2021, the carrying value of indefinite-lived intangible assets was $97.9 million, of which $70.5 million was attributed to prAna’s trademark. In our 2021 impairment test, the fair value of prAna’s trademark exceeded its carrying value by approximately 26% as of the measurement date and, therefore, no impairment was recognized. As part of our evaluation, we performed sensitivity analysis on the trademark impairment model. A 10% decrease in estimated net sales for each of the next five years did not cause the fair value of the trademark to decline below its carrying value. Separately, a 100 basis point increase in the assumed discount rate did not cause the fair value of the trademark to decline below its carrying value. In 2020, our impairment test of prAna’s trademark resulted in a $17.5 million impairment charge.

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In the impairment test for goodwill, we compare the estimated fair value of the reporting unit with the carrying amount of that reporting unit. If the carrying amount of the reporting unit exceeds its estimated fair value, we calculate an impairment as the excess of carrying amount over the estimate of fair value. We estimate the fair value of our reporting units using a combination of discounted cash flow analysis and market-based valuation methods, as appropriate. Key assumptions used in the discounted cash flow models are cash flow projections and the discount rate. Cash flow projections are developed in part from our annual planning process. The discount rate is the estimated weighted-average costs of capital of the reporting unit from a market-participant perspective. When we include market-based valuation methods to estimate fair value of our reporting units, we utilize market multiples for guideline public companies. The goodwill balance was $68.6 million at December 31, 2021, of which $54.2 million was allocated to the prAna reporting unit. In our 2021 impairment test, the fair value of the prAna reporting unit exceeded its carrying value by approximately 39% as of the measurement date and, therefore, no impairment was recognized.

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

Income Taxes

We make assumptions, judgments and estimates to determine our current provision for income taxes, our deferred tax assets and liabilities and our uncertain tax positions. Our judgments, assumptions and estimates relative to the current provision for income tax take into account current tax laws, our interpretation of current tax laws and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. Changes in tax law or our interpretation of tax laws and the resolution of current and future tax audits could significantly affect the amounts provided for Income tax expense in our Consolidated Statements of Operations.

Our assumptions, judgments and estimates relative to the value of a deferred tax asset take into account predictions of the amount and category of future taxable income. Actual operating results and the underlying amount and category of income in future years could cause our current assumptions, judgments and estimates of recoverable net deferred tax assets to be inaccurate. Changes in any of the assumptions, judgments and estimates mentioned above could cause our actual income tax obligations to differ from our estimates, which could materially affect our financial position, results of operations or cash flows.

Our assumptions, judgement and estimates relative to uncertain tax positions take into account whether a tax position is more likely than not to be sustained upon examination by the relevant taxing authority based on the technical merits of the position and the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. Changes in tax law or our interpretation of tax laws and the resolution of current and future tax audits could significantly affect the amounts provided for Income tax expense in our Consolidated Statements of Operations.

Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. As the calendar year progresses, we periodically refine our estimate based on actual events and earnings by jurisdiction. This ongoing estimation process can result in changes to our expected effective tax rate for the full calendar year. When this occurs, we adjust the income tax provision during the quarter in which the change in estimate occurs so that our year-to-date provision equals our expected annual effective tax rate.

RECENT ACCOUNTING PRONOUNCEMENTS

Refer to Note 2 in Item 8 of this Annual Report on Form 10-K.

ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

In the normal course of business, our financial position and results of operations are subject to a variety of risks, including risks associated with global financial and capital markets, primarily currency exchange rate risk and, to a lesser extent, interest rate risk. We regularly assess these risks and have established policies and business practices designed to mitigate their effects. We do not engage in speculative trading in any financial or capital market.

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FOREIGN EXCHANGE RISK

Our primary currency exchange rate risk management objective is to mitigate the uncertainty of anticipated cash flows attributable to changes in exchange rates. We focus on mitigating changes in functional currency equivalent cash flows resulting from anticipated United States dollar denominated inventory purchases by subsidiaries that use European euros, Canadian dollars, Japanese yen, Chinese renminbi, or Korean won as their functional currency. We also mitigate changes in functional currency equivalent cash flows resulting from anticipated non-functional currency denominated sales for subsidiaries that use United States dollars and euros as their functional currency. We manage this risk primarily by using currency forward contracts. Additionally, we hedge net balance sheet exposures related primarily to non-functional currency denominated monetary assets and liabilities using foreign currency forward contracts in European euros, Japanese yen, Canadian dollars, Swiss francs, Chinese renminbi, Korean won, British pound, Danish krone, Norwegian kroner, Polish zloty, Swedish krona and Czech koruna. Non-functional currency denominated monetary assets and liabilities consist primarily of cash and cash equivalents, short-term investments, receivables, payables, deferred income taxes, and intercompany loans and dividends.

The net fair value of our derivative contracts was favorable by approximately $15.6 million at December 31, 2021. A 10% unfavorable exchange rate change in the euro, franc, Canadian dollar, yen, renminbi, won, pound, krone, zloty, krona and koruna against the United States dollar would have resulted in the net fair value declining by approximately $57.3 million at December 31, 2021. Changes in fair value of derivative contracts resulting from foreign exchange rate fluctuations would be substantially offset by the change in value of the underlying hedged transactions.

INTEREST RATE RISK

Our negotiated credit facilities generally charge interest based on a benchmark rate such as the London Interbank Offered Rate ("LIBOR"). Fluctuations in short-term interest rates cause interest payments on drawn amounts to increase or decrease. At December 31, 2021, no balance was outstanding under our credit facilities.

COMMODITY PRICE RISK

We are exposed to market risk for the pricing of the raw materials used to manufacture our products. These raw materials are purchased directly by our contract manufacturers.

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| Table of Contents | | --- || ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA | | --- | --- |

Our management is responsible for the information and representations contained in this report. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which we consider appropriate in the circumstances and include some amounts based on our best estimates and judgments. Other financial information in this report is consistent with these financial statements.

Our accounting systems include controls designed to reasonably ensure that assets are safeguarded from unauthorized use or disposition and which provide for the preparation of financial statements in conformity with GAAP. These systems are supplemented by the selection and training of qualified financial personnel and an organizational structure providing for appropriate segregation of duties.

The audit committee is responsible for appointing the independent registered public accounting firm and reviews with the independent registered public accounting firm and management the scope and the results of the annual examination, the effectiveness of the accounting control system and other matters relating to our financial affairs as they deem appropriate.

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Deloitte & Touche LLP<br><br>U.S. Bancorp Tower<br><br>111 Southwest Fifth Avenue<br><br>Suite 3900<br><br>Portland, OR 97204-3642<br><br>USA<br><br><br><br>Tel:+1 503 222 1341<br><br>Fax: +1 503 224 2172<br><br>www.deloitte.com

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Columbia Sportswear Company

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Columbia Sportswear Company and subsidiaries (the "Company") as of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2021, the related notes, and the schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 24, 2022, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

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Intangible Assets, Net – prAna Trademark– Refer to Notes 2 and 6 to the Consolidated Financial Statements

Critical Audit Matter Description

The Company has intangible assets, including trademarks and trade names (“trademarks”). As of December 31, 2021, the carrying value of the intangible assets was $101.9 million, of which $70.5 million was attributed to prAna’s trademark. The Company used the relief from royalty method to estimate fair value, which requires management to make significant estimates and assumptions related to projected revenues.

Auditing management’s estimates and assumptions related to projected revenues for prAna involved especially subjective judgement.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to management’s estimates and assumptions related to projected revenues for the prAna trademark valuation included the following, among others:

•We tested the effectiveness of controls over intangible assets, including those over the forecasts of future revenues.

•We evaluated management’s ability to accurately forecast future revenues by comparing actual results to management’s historical forecasts.

•We evaluated the reasonableness of management’s revenues forecasts by comparing the forecasts to:

◦Historical revenues.

◦Forecasted information included in Company press releases as well as in analyst and industry reports for the Company and certain of its peer companies.

•We evaluated the inputs used in the forecast and the basis for the assumptions made by management.

•We evaluated the impact of changes in management’s forecasts from the October 31, 2021 annual measurement date to December 31, 2021.

Long-lived Asset Valuation – Refer to Notes 2, 5 and 9 to the Consolidated Financial Statements

Critical Audit Matter Description

The Company evaluates retail location long-lived assets for impairment when events or changes in circumstances exist that may indicate that the carrying amounts of retail location long-lived assets are no longer recoverable. Events that result in an impairment review include plans to close a retail location or a significant decrease in the operating results of the retail location. When such an indicator occurs, the Company evaluates its retail location long-lived assets for impairment by comparing the undiscounted future cash flow expected to be generated by the location to the location long-lived asset’s carrying amount. If the carrying amount of an asset exceeds the estimated undiscounted future cash flow, an analysis is performed to estimate the fair value of the asset. An impairment is recorded if the fair value of the retail location long-lived asset is less than the carrying amount.

The Company makes significant assumptions to evaluate retail location long-lived assets for possible indications of impairment. Changes in these assumptions could have a significant impact on the retail location long-lived assets identified for further analysis. For the year ended December 31, 2021, impairment charges from underperforming retail location long-lived assets were immaterial.

Given the Company’s evaluation of possible indications of impairment of retail location long-lived assets requires management to make significant assumptions, performing audit procedures to evaluate whether management appropriately identified events or changes in circumstances indicating that the carrying amounts of retail location long-lived assets may not be recoverable involved especially subjective judgment.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the evaluation of retail location long-lived assets for possible indications of impairment included the following, among others:

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•We tested the effectiveness of the controls over management's identification of possible circumstances that may indicate that the carrying amounts of retail location long-lived assets are no longer recoverable.

•We evaluated management's impairment analysis by:

◦Testing retail location long-lived assets for possible indications of impairment, including searching for locations with a history of losses, current period loss, or projected losses.

◦Performing inquiries of management regarding the process and assumptions used to identify potential indicators of impairment and evaluating the consistency of the assumptions with evidence obtained in other areas of the audit.

/s/    DELOITTE & TOUCHE LLP

Portland, Oregon

February 24, 2022

We have served as the Company’s auditor since at least 1994; however, an earlier year could not be reliably determined.

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Deloitte & Touche LLP<br><br>U.S. Bancorp Tower<br><br>111 Southwest Fifth Avenue<br><br>Suite 3900<br><br>Portland, OR 97204-3642<br><br>USA<br><br><br><br>Tel:+1 503 222 1341<br><br>Fax: +1 503 224 2172<br><br>www.deloitte.com

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors of Columbia Sportswear Company

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of Columbia Sportswear Company and subsidiaries (the “Company”) as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2021, of the Company and our report dated February 24, 2022, expressed an unqualified opinion on those financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Report of Management. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/    DELOITTE & TOUCHE LLP

Portland, Oregon

February 24, 2022

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| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || CONSOLIDATED BALANCE SHEETS | | --- | | | December 31, | | | | | --- | --- | --- | --- | --- | | (in thousands) | 2021 | | 2020 | | | ASSETS | | | | | | Current Assets: | | | | | | Cash and cash equivalents | $ | 763,404 | $ | 790,725 | | Short-term investments | 131,145 | | 1,224 | | | Accounts receivable, net of allowance of 8,893 and 21,810, respectively | 487,803 | | 452,945 | | | Inventories, net | 645,379 | | 556,530 | | | Prepaid expenses and other current assets | 86,306 | | 54,197 | | | Total current assets | 2,114,037 | | 1,855,621 | | | Property, plant and equipment, net | 291,088 | | 309,792 | | | Operating lease right-of-use assets | 330,928 | | 339,244 | | | Intangible assets, net | 101,908 | | 103,558 | | | Goodwill | 68,594 | | 68,594 | | | Deferred income taxes | 92,121 | | 96,126 | | | Other non-current assets | 68,452 | | 63,636 | | | Total assets | $ | 3,067,128 | $ | 2,836,571 | | LIABILITIES AND EQUITY | | | | | | Current Liabilities: | | | | | | Accounts payable | $ | 283,349 | $ | 206,697 | | Accrued liabilities | 316,485 | | 257,278 | | | Operating lease liabilities | 67,429 | | 65,466 | | | Income taxes payable | 13,127 | | 23,181 | | | Total current liabilities | 680,390 | | 552,622 | | | Non-current operating lease liabilities | 317,666 | | 353,181 | | | Income taxes payable | 44,541 | | 49,922 | | | Deferred income taxes | — | | 5,205 | | | Other long-term liabilities | 35,279 | | 42,870 | | | Total liabilities | 1,077,876 | | 1,003,800 | | | Commitments and contingencies (Note 12) | | | | | | Shareholders' Equity: | | | | | | Preferred stock; 10,000 shares authorized; none issued and outstanding | — | | — | | | Common stock (no par value); 250,000 shares authorized; 65,164 and 66,252 issued and outstanding, respectively | — | | 20,165 | | | Retained earnings | 1,993,628 | | 1,811,800 | | | Accumulated other comprehensive income (loss) | (4,376) | | 806 | | | Total shareholders' equity | 1,989,252 | | 1,832,771 | | | Total liabilities and shareholders' equity | $ | 3,067,128 | $ | 2,836,571 |

See accompanying notes to consolidated financial statements.

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| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || CONSOLIDATED STATEMENTS OF OPERATIONS | | --- | | | Year Ended December 31, | | | | | | | --- | --- | --- | --- | --- | --- | --- | | (in thousands, except per share amounts) | 2021 | | 2020 | | 2019 | | | Net sales | $ | 3,126,402 | $ | 2,501,554 | $ | 3,042,478 | | Cost of sales | 1,513,947 | | 1,277,665 | | 1,526,808 | | | Gross profit | 1,612,455 | | 1,223,889 | | 1,515,670 | | | Selling, general and administrative expenses | 1,180,323 | | 1,098,948 | | 1,136,186 | | | Net licensing income | 18,372 | | 12,108 | | 15,487 | | | Operating income | 450,504 | | 137,049 | | 394,971 | | | Interest income, net | 1,380 | | 435 | | 8,302 | | | Other non-operating income (expense), net | (373) | | 2,039 | | 2,156 | | | Income before income tax | 451,511 | | 139,523 | | 405,429 | | | Income tax expense | (97,403) | | (31,510) | | (74,940) | | | Net income | 354,108 | | 108,013 | | 330,489 | | | Earnings per share: | | | | | | | | Basic | $ | 5.37 | $ | 1.63 | $ | 4.87 | | Diluted | $ | 5.33 | $ | 1.62 | $ | 4.83 | | Weighted average shares outstanding: | | | | | | | | Basic | 65,942 | | 66,376 | | 67,837 | | | Diluted | 66,415 | | 66,772 | | 68,493 | |

See accompanying notes to consolidated financial statements.

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| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | --- | | | Year Ended December 31, | | | | | | | --- | --- | --- | --- | --- | --- | --- | | (in thousands) | 2021 | | 2020 | | 2019 | | | Net income | $ | 354,108 | $ | 108,013 | $ | 330,489 | | Other comprehensive income (loss): | | | | | | | | Unrealized holding gains on available-for-sale securities, net | — | | 4 | | 56 | | | Unrealized holding gains (losses) on derivative transactions (net of tax effects of $(7,138), $6,271, and $830, respectively) | 19,283 | | (18,851) | | (2,383) | | | Foreign currency translation adjustments (net of tax effects of $(40), $(388), and $2,188, respectively) | (24,465) | | 24,078 | | 2,064 | | | Other comprehensive income (loss) | (5,182) | | 5,231 | | (263) | | | Comprehensive income | 348,926 | | 113,244 | | 330,226 | |

See accompanying notes to consolidated financial statements.

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| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || CONSOLIDATED STATEMENTS OF CASH FLOWS | | --- | | | Year Ended December 31, | | | | | | | --- | --- | --- | --- | --- | --- | --- | | (in thousands) | 2021 | | 2020 | | 2019 | | | Cash flows from operating activities: | | | | | | | | Net income | $ | 354,108 | $ | 108,013 | $ | 330,489 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | Depreciation, amortization, and non-cash lease expense | 115,571 | | 146,601 | | 121,725 | | | Provision for uncollectible accounts receivable | (10,758) | | 19,156 | | (108) | | | Loss on disposal or impairment of intangible assets, property, plant and equipment, and right-of-use assets | 1,233 | | 31,342 | | 5,442 | | | Deferred income taxes | (9,798) | | (11,263) | | (1,808) | | | Stock-based compensation | 19,126 | | 17,778 | | 17,832 | | | Changes in operating assets and liabilities: | | | | | | | | Accounts receivable | (31,622) | | 22,885 | | (37,429) | | | Inventories, net | (100,261) | | 64,884 | | (84,058) | | | Prepaid expenses and other current assets | (24,858) | | 33,712 | | (15,068) | | | Other assets | 1,231 | | (21,224) | | (3,547) | | | Accounts payable | 75,513 | | (49,275) | | (10,419) | | | Accrued liabilities | 66,457 | | (52,115) | | 18,863 | | | Income taxes payable | (15,248) | | 9,082 | | (9,402) | | | Operating lease assets and liabilities | (85,176) | | (52,112) | | (54,197) | | | Other liabilities | (1,112) | | 8,613 | | 7,137 | | | Net cash provided by operating activities | 354,406 | | 276,077 | | 285,452 | | | Cash flows from investing activities: | | | | | | | | Purchases of short-term investments | (130,191) | | (35,044) | | (136,257) | | | Sales and maturities of short-term investments | 1,184 | | 36,631 | | 400,501 | | | Capital expenditures | (34,744) | | (28,758) | | (123,516) | | | Net cash provided by (used in) investing activities | (163,751) | | (27,171) | | 140,728 | | | Cash flows from financing activities: | | | | | | | | Proceeds from credit facilities | 38,334 | | 402,422 | | 78,186 | | | Repayments on credit facilities | (38,156) | | (403,146) | | (78,186) | | | Payment of line of credit issuance fees | — | | (3,278) | | — | | | Proceeds from issuance of common stock related to stock-based compensation | 28,783 | | 6,919 | | 19,793 | | | Tax payments related to stock-based compensation | (5,812) | | (4,533) | | (5,806) | | | Repurchase of common stock | (165,415) | | (132,889) | | (121,702) | | | Purchase of non-controlling interest | — | | — | | (17,880) | | | Cash dividends paid | (68,623) | | (17,195) | | (65,127) | | | Net cash used in financing activities | (210,889) | | (151,700) | | (190,722) | | | Net effect of exchange rate changes on cash | (7,087) | | 7,510 | | (1,244) | | | Net increase (decrease) in cash and cash equivalents | (27,321) | | 104,716 | | 234,214 | | | Cash and cash equivalents, beginning of period | 790,725 | | 686,009 | | 451,795 | | | Cash and cash equivalents, end of period | $ | 763,404 | $ | 790,725 | $ | 686,009 | | Supplemental disclosures of cash flow information: | | | | | | | | Cash paid during the year for income taxes | $ | 129,483 | $ | 14,687 | $ | 99,062 | | Supplemental disclosures of non-cash investing and financing activities: | | | | | | | | Property, plant and equipment acquired through increase in liabilities | $ | 5,853 | $ | 3,831 | $ | 9,543 |

See accompanying notes to consolidated financial statements.

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| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || CONSOLIDATED STATEMENTS OF EQUITY | | --- | | | Columbia Sportswear Company Shareholders' Equity | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (in thousands, except per share amounts) | Common Stock | | | | Retained Earnings | | Accumulated Other Comprehensive Income (Loss) | | Non-Controlling Interest | | Total | | | | | Amount | | | | | | Balance, January 1, 2019 | 68,246 | | $ | — | $ | 1,677,920 | $ | (4,063) | $ | 16,456 | $ | 1,690,313 | | Net income | — | | — | | 330,489 | | — | | — | | 330,489 | | | Purchase of non-controlling interest | — | | — | | — | | (99) | | (16,456) | | (16,555) | | | Other comprehensive income (loss): | | | | | | | | | | | | | | Unrealized holding gains on available-for-sale securities, net | — | | — | | — | | 56 | | — | | 56 | | | Unrealized holding losses on derivative transactions, net | — | | — | | — | | (2,383) | | — | | (2,383) | | | Foreign currency translation adjustment, net | — | | — | | — | | 2,064 | | — | | 2,064 | | | Cash dividends (0.96 per share) | — | | — | | (65,127) | | — | | — | | (65,127) | | | Issuance of common stock related to stock-based compensation, net | 558 | | 13,987 | | — | | — | | — | | 13,987 | | | Stock-based compensation expense | — | | 17,832 | | — | | — | | — | | 17,832 | | | Repurchase of common stock | (1,243) | | (26,882) | | (94,347) | | — | | — | | (121,229) | | | Balance, December 31, 2019 | 67,561 | | 4,937 | | 1,848,935 | | (4,425) | | — | | 1,849,447 | | | Net income | — | | — | | 108,013 | | — | | — | | 108,013 | | | Other comprehensive income (loss): | | | | | | | | | | | | | | Unrealized holding gains on available-for-sale securities, net | — | | — | | — | | 4 | | — | | 4 | | | Unrealized holding losses on derivative transactions, net | — | | — | | — | | (18,851) | | — | | (18,851) | | | Foreign currency translation adjustment, net | — | | — | | — | | 24,078 | | — | | 24,078 | | | Cash dividends (0.26 per share) | — | | — | | (17,195) | | — | | — | | (17,195) | | | Issuance of common stock related to stock-based compensation, net | 248 | | 2,386 | | — | | — | | — | | 2,386 | | | Stock-based compensation expense | — | | 17,778 | | — | | — | | — | | 17,778 | | | Repurchase of common stock | (1,557) | | (4,936) | | (127,953) | | — | | — | | (132,889) | | | Balance, December 31, 2020 | 66,252 | | 20,165 | | 1,811,800 | | 806 | | — | | 1,832,771 | | | Net income | — | | — | | 354,108 | | — | | — | | 354,108 | | | Other comprehensive income (loss): | | | | | | | | | | | | | | Unrealized holding gains on derivative transactions, net | — | | — | | — | | 19,283 | | — | | 19,283 | | | Foreign currency translation adjustment, net | — | | — | | — | | (24,465) | | — | | (24,465) | | | Cash dividends (1.04 per share) | — | | — | | (68,623) | | — | | — | | (68,623) | | | Issuance of common stock related to stock-based compensation, net | 567 | | 22,971 | | — | | — | | — | | 22,971 | | | Stock-based compensation expense | — | | 19,126 | | — | | — | | — | | 19,126 | | | Repurchase of common stock | (1,655) | | (62,262) | | (103,657) | | — | | — | | (165,919) | | | Balance, December 31, 2021 | 65,164 | | $ | — | $ | 1,993,628 | $ | (4,376) | $ | — | $ | 1,989,252 |

All values are in US Dollars.

See accompanying notes to consolidated financial statements.

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| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || INDEX TO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | | --- | | NOTE | | PAGE | | --- | --- | --- | | Note 1 | Basis of Presentation and Organization | 45 | | Note 2 | Summary of Significant Accounting Policies | 45 | | Note 3 | Revenues | 50 | | Note 4 | Concentrations | 51 | | Note 5 | Property, Plant and Equipment, Net | 51 | | Note 6 | Intangible Assets, Net and Goodwill | 52 | | Note 7 | Short-Term Borrowings and Credit Lines | 53 | | Note 8 | Accrued Liabilities | 53 | | Note 9 | Leases | 54 | | Note 10 | Income Taxes | 55 | | Note 11 | Retirement Savings Plans | 58 | | Note 12 | Commitments and Contingencies | 58 | | Note 13 | Shareholders' Equity | 59 | | Note 14 | Stock-Based Compensation | 59 | | Note 15 | Earnings Per Share | 62 | | Note 16 | Accumulated Other Comprehensive Income (Loss) | 63 | | Note 17 | Segment Information | 63 | | Note 18 | Financial Instruments and Risk Management | 65 | | Note 19 | Fair Value Measures | 66 |

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| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | | --- || NOTE 1 — BASIS OF PRESENTATION AND ORGANIZATION | | --- |

NATURE OF THE BUSINESS

Columbia Sportswear Company connects active people with their passions through its four well-known brands, Columbia, SOREL, Mountain Hardwear, and prAna, by designing, developing, marketing, and distributing its outdoor, active and everyday lifestyle apparel, footwear, accessories, and equipment products to meet the diverse needs of its customers and consumers.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of Columbia Sportswear Company, its wholly owned subsidiaries and entities in which it maintained a controlling financial interest (the "Company"). All significant intercompany balances and transactions have been eliminated in consolidation.

ESTIMATES AND ASSUMPTIONS

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

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

Effective January 1, 2021, the Company adopted Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes issued by the Financial Accounting Standards Board (“FASB”) in December 2019, which, among other things, removes specific exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods, as well as targeted impacts to the accounting for taxes under hybrid tax regimes. At adoption there was not a material impact to the Company's financial position, results of operations or cash flows.

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

Cash and cash equivalents are stated at fair value or at cost, which approximates fair value, and include investments with original maturities of 90 days or less at the date of acquisition. At December 31, 2021, Cash and cash equivalents consisted of cash and money market funds. At December 31, 2020, Cash and cash equivalents consisted of cash, money market funds, and United States government treasury bills.

INVESTMENTS

At December 31, 2021, Short-term investments consisted of United States government treasury bills as well as money market funds and mutual fund shares held as part of the Company's deferred compensation plan expected to be distributed in the next twelve months. At December 31, 2020, Short-term investments consisted of money market funds and mutual fund shares held as part of the Company's deferred compensation plan expected to be distributed in the next twelve months. Investments held as part of the Company's deferred compensation plan are classified as trading securities and are recorded at fair value with any unrealized gains and losses included in SG&A expense. Realized gains or losses from these trading securities are determined based on the specific identification method and are included in SG&A expense.

At December 31, 2021 and 2020, long-term investments included in Other non-current assets consisted of money market funds and mutual fund shares held to offset liabilities to participants in the Company's deferred compensation plan. The investments are classified as long-term

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because the related deferred compensation liabilities are not expected to be paid within the next year. These investments are classified as trading securities and are recorded at fair value with unrealized gains and losses reported as a component of operating income.

ACCOUNTS RECEIVABLE

Accounts receivable have been reduced by an allowance for doubtful accounts. The Company maintains the allowance for estimated losses resulting from the inability of the Company's customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. Write-offs of accounts receivable were $0.2 million and $8.0 million for the years ended December 31, 2021 and 2020, respectively.

INVENTORIES

Inventories consist primarily of finished goods and are carried at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. The Company periodically reviews its inventories for excess, close-out or slow-moving items and makes provisions as necessary to properly reflect inventory value.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. The principal estimated useful lives are: land improvements, 15 years; buildings and building improvements, 15-30 years; furniture and fixtures, 3-10 years; and machinery, software and equipment, 3-10 years. Leasehold improvements are depreciated over the lesser of the estimated useful life of the improvement, which is most commonly 7 years, or the remaining term of the underlying lease.

Improvements to property, plant and equipment that substantially extend the useful life of the asset are capitalized. Repair and maintenance costs are expensed as incurred. Internal and external costs directly related to the development of internal-use software during the application development stage, including costs incurred for third party contractors and employee compensation, are capitalized and depreciated over a 3-10 year estimated useful life.

INTANGIBLE ASSETS AND GOODWILL

Intangible assets with indefinite lives and goodwill are not amortized but are periodically evaluated for impairment. Intangible assets that are determined to have finite lives are amortized using the straight-line method over their estimated useful lives and are measured for impairment only when events or circumstances indicate the carrying value may be impaired. Intangible assets with finite lives include patents, purchased technology and customer relationships and have estimated useful lives which range from approximately 3 to 10 years.

CLOUD COMPUTING ARRANGEMENTS

The Company’s cloud computing arrangements ("CCAs") primarily relate to various enterprise resource planning systems, as well as other supporting systems. These assets are generally included in Other non-current assets in the Consolidated Balance Sheets and amortized on a straight-line basis over their assessed useful lives or the term of the underlying cloud computing hosting contract, whichever is shorter. As of December 31, 2021, CCAs in-service have useful lives which range from approximately ten months to five years. At December 31, 2021, and 2020 CCA assets consisted of capitalized implementation costs of $26.6 million and $24.3 million, respectively and associated accumulated amortization of $6.8 million and $1.9 million, respectively. Changes in these assets are recorded in Other assets within operating activities in the Consolidated Statements of Cash Flows.

LEASES

The Company leases, among other things, retail space, office space, warehouse facilities, storage space, vehicles, and equipment. Generally, the base lease terms are between 5 and 10 years. Certain lease agreements contain scheduled rent escalation clauses and others include rental payments adjusted periodically depending on an index or rate. Certain retail space lease agreements provide for additional rents based on a percentage of annual sales in excess of stipulated minimums ("percentage rent"). Certain lease agreements require the Company to pay real estate taxes, insurance, common area maintenance, and other costs, collectively referred to as operating costs, in addition to base rent.

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Certain lease agreements also contain lease incentives, such as tenant improvement allowances and rent holidays. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years or more. The exercise of lease renewal options is generally at the Company's sole discretion. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company determines if an arrangement is or contains a lease at contract inception. The Company recognizes a right-of-use ("ROU") asset and a lease liability at the lease commencement date. The lease liability is initially measured at the present value of the unpaid lease payments at the lease commencement date. Key estimates and judgments include how the Company determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) the lease term and (3) lease payments.

Unpaid lease payments are discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Generally, the Company cannot determine the interest rate implicit in the lease because it does not have access to the lessor's estimated residual value or the amount of the lessor's deferred initial direct costs. Therefore, the Company generally uses its incremental borrowing rate as the discount rate for the lease. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because the Company does not generally borrow on a collateralized basis, it uses market-based rates as an input to derive an appropriate incremental borrowing rate, adjusted for the lease term and the effect on that rate of designating specific collateral with a value equal to the unpaid lease payments for that lease. The Company also contemplates adjusting the discount rate for the amount of the lease payments.

The Company's lease contracts may include options to extend the lease following the initial term or terminate the lease prior to the end of the initial term. In most instances, at the commencement of the leases, the Company has determined that it is not reasonably certain to exercise either of these options; accordingly, these options are generally not considered in determining the initial lease term. At the renewal of an expiring lease, the Company reassesses options in the contract that it is reasonably certain to exercise in its measurement of lease term.

For lease agreements entered into or reassessed after the adoption of Accounting Standards Codification ("ASC") 842, the Company has elected the practical expedient to account for the lease and non-lease components as a single lease component. Therefore, for those leases, the lease payments used to measure the lease liability include all of the fixed consideration in the contract.

Variable lease payments associated with the Company's leases are recognized upon occurrence of the event, activity, or circumstance in the lease agreement on which those payments are assessed. Variable lease payments are presented in the Company's Consolidated Statements of Operations in the same line item as expense arising from fixed lease payments.

Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Concessions

In April 2020, the FASB issued a Staff Q&A, Topic 842 and 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic. The FASB staff indicated that it would be acceptable for entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how they would be accounted for as though enforceable rights and obligations for those concessions existed in the original contract. The Company elected to account for lease concessions related to the effects of the COVID-19 pandemic in accordance with the Staff Q&A. For concessions that provide a deferral of payments with no substantive changes to the consideration in the original contract, the Company continues to recognize expense during the deferral period. For concessions in the form of lease abatements, the reduced lease payments are accounted for as reductions to variable lease expense.

IMPAIRMENT OF LONG-LIVED ASSETS, INTANGIBLE ASSETS AND GOODWILL

Long-lived assets, which include property, plant and equipment, lease ROU assets, capitalized implementation costs for cloud computing arrangements, and intangible assets with finite lives, are measured for impairment only when events or circumstances indicate the carrying value may be impaired. In these cases, the Company estimates the future undiscounted cash flows to be derived from the asset or asset group to determine whether a potential impairment exists. If the sum of the estimated undiscounted cash flows is less than the carrying value of the asset, the Company recognizes an impairment loss, measured as the amount by which the carrying value exceeds the estimated fair value of the asset.

The Company reviews and tests its intangible assets with indefinite lives and goodwill for impairment in the fourth quarter of each year and when events or changes in circumstances indicate that the carrying amount of such assets may be impaired. The Company's intangible

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assets with indefinite lives consist of trademarks and trade names. In the impairment test for goodwill, the estimated fair value of the reporting unit is compared with the carrying amount of that reporting unit. In the impairment tests for trademarks and trade names, the Company compares the estimated fair value of each asset to its carrying amount. For goodwill and trademarks and trade names, if the carrying amount exceeds its estimated fair value, the Company calculates an impairment as the excess of carrying amount over the estimate of fair value.

Impairment charges, if any, are classified as a component of SG&A expense.

INCOME TAXES

Income taxes are based on amounts of taxes payable or refundable in the current year and on expected future tax consequences of events that are recognized in the financial statements in different periods than they are recognized in tax returns. As a result of timing of recognition and measurement differences between financial accounting standards and income tax laws, temporary differences arise between amounts of pre-tax financial statement income and taxable income and between reported amounts of assets and liabilities in the Consolidated Balance Sheets and their respective tax bases. Deferred income tax assets and liabilities reported in the Consolidated Balance Sheets reflect estimated future tax effects attributable to these temporary differences and to net operating loss and net capital loss carryforwards, based on tax rates expected to be in effect for years in which the differences are expected to be settled or realized. Realization of deferred tax assets is dependent on future taxable income in specific jurisdictions. Valuation allowances are used to reduce deferred tax assets to amounts considered likely to be realized.

Accrued income taxes in the Consolidated Balance Sheets include unrecognized income tax benefits relating to uncertain tax positions, including related interest and penalties, appropriately classified as current or non-current. The Company recognizes the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the relevant taxing authority based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. In making this determination, the Company assumes that the taxing authority will examine the position and that it will have full knowledge of all relevant information. Changes in the Company's assessment may result in the recognition of a tax benefit or an additional charge to the tax provision in the period our assessment changes.

DERIVATIVES

The effective portion of changes in fair values of outstanding cash flow hedges is recorded in Other comprehensive income (loss) until earnings are affected by the hedged transaction, and any ineffective portion is included in current income. In most cases, amounts recorded in Other comprehensive income (loss) will be released to earnings after maturity of the related derivative. The Consolidated Statements of Operations classification of effective hedge results is the same as that of the underlying exposure. Results of hedges of product costs are recorded in Cost of sales when the underlying hedged transactions affect earnings. Results of hedges of revenue are recorded in Net sales when the underlying hedged transactions affect earnings. Unrealized derivative gains and losses, which are recorded in assets and liabilities, respectively, are non-cash items and therefore are taken into account in the preparation of the Consolidated Statements of Cash Flows based on their respective balance sheet classifications.

FOREIGN CURRENCY TRANSLATION

For the Company's subsidiaries whose functional currency is not the United States dollar, assets and liabilities have been translated into United States dollars using the exchange rates in effect at period end, and the sales and expenses have been translated into United States dollars using average exchange rates in effect during the period. The foreign currency translation adjustments are included as a separate component of Accumulated other comprehensive income (loss) in the Consolidated Balance Sheets.

REVENUE RECOGNITION

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

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The amount of consideration the Company expects to be entitled to receive and recognize as Net sales across both wholesale and DTC channels varies with changes in sales returns and other accommodations and incentives offered. The Company estimates expected sales returns and other accommodations, such as chargebacks and markdowns and records a sales reserve to reduce Net sales. These estimates are based on historical rates of product returns and claims, as well as events and circumstances that indicate changes to such historical rates. However, actual returns and claims in any future period are inherently uncertain and thus may differ from the estimates. As a result, the Company adjusts estimates of revenue at the earlier of when the most likely amount of consideration the Company expects to receive changes or when the amount of consideration becomes fixed. If actual or expected future returns and claims are significantly greater or lower than the sales reserves established, the Company records an adjustment to Net sales in the period in which it made such determination.

Licensing income, which is presented separately as Net licensing income on the Consolidated Statements of Operations and represents less than 1% of total revenue, is recognized over time based on the greater of contractual minimum royalty guarantees and actual, or estimated, sales of licensed products by the Company's licensees.

The Company expenses sales commissions when incurred, which is generally at the time of sale, because the amortization period would have been one year or less. These costs are recorded within SG&A expenses.

Revenue recognized from contracts with customers is recorded net of sales taxes, value added taxes, or similar taxes that are collected on behalf of local taxing authorities.

Shipping and Handling Costs

The Company treats shipping and handling activities as fulfillment costs, and as such recognize the costs for these activities at the time related revenue is recognized. The majority of these costs, typically associated with warehousing and handling of inventory, are generally recorded as SG&A expenses, while the direct costs associated with shipping goods to customers and consumers are recorded as Costs of sales. Shipping and handling fees billed to customers are recorded as Net sales. Shipping and handling costs recorded as a component of SG&A expenses and were $114.4 million, $98.0 million and $89.2 million for the years ended December 31, 2021, 2020 and 2019, respectively.

COST OF SALES

Cost of sales consists of all direct product costs, including shipping, duties and importation costs, as well as specific provisions for excess, close-out or slow-moving inventory. In addition, certain products carry life-time or limited warranty provisions for defects in quality and workmanship. Cost of sales includes a warranty reserve established for these provisions at the time of sale to cover estimated costs based on the Company's history of warranty repairs and replacements.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

SG&A expenses consists of personnel-related costs, advertising, depreciation and amortization, occupancy, and other selling and general operating expenses related to the Company's business functions.

STOCK-BASED COMPENSATION

Stock-based compensation cost is estimated at the grant date based on the award's fair value and is recorded as expense when recognized. For stock options and service-based restricted units, stock-based compensation cost is recognized over the expected requisite service period using the straight-line attribution method. For performance-based restricted stock units, stock-based compensation cost is recognized based on the Company's assessment of the probability of achieving performance targets in the reporting period. The Company estimates forfeitures for stock-based awards granted, but which are not expected to vest.

ADVERTISING COSTS

Advertising costs, including marketing and demand creation spending, are expensed in the period incurred and are included in SG&A expenses. Total advertising expense, including cooperative advertising costs, was $184.8 million, $141.3 million and $166.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. Cooperative advertising costs are expensed when the related revenues are recognized and included in SG&A expenses.

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RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In November 2021, the FASB issued ASU No. 2021-10 (“ASU 2021-10”), Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, to increase transparency of government assistance including the disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. ASU 2021-10 is effective for annual periods beginning after December 15, 2021. Early adoption is permitted. The impact of this new standard will depend on the amount of future government assistance received, if any.

NOTE 3 — REVENUES

DISAGGREGATED REVENUE

As disclosed below in Note 17, the Company has four geographic reportable segments: United States ("U.S."), Latin America and Asia Pacific ("LAAP"), Europe, Middle East and Africa ("EMEA") and Canada.

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

	Year Ended December 31, 2021
(in thousands)	U.S.		LAAP		EMEA		Canada		Total
Product category net sales
Apparel, Accessories and Equipment	$	1,624,542	$	347,071	$	263,432	$	154,109	$	2,389,154
Footwear	435,758		118,428		118,628		64,434		737,248
Total	$	2,060,300	$	465,499	$	382,060	$	218,543	$	3,126,402
Channel net sales
Wholesale	$	983,799	$	215,448	$	317,104	$	144,008	$	1,660,359
DTC	1,076,501		250,051		64,956		74,535		1,466,043
Total	$	2,060,300	$	465,499	$	382,060	$	218,543	$	3,126,402
	Year Ended December 31, 2020
---	---	---	---	---	---	---	---	---	---	---
(in thousands)	U.S.		LAAP		EMEA		Canada		Total
Product category net sales
Apparel, Accessories and Equipment	1,231,835		320,616		197,052		118,116		$	1,867,619
Footwear	371,948		103,873		101,855		56,259		633,935
Total	$	1,603,783	$	424,489	$	298,907	$	174,375	$	2,501,554
Channel net sales
Wholesale	838,388		198,083		249,161		117,628		$	1,403,260
DTC	765,395		226,406		49,746		56,747		1,098,294
Total	$	1,603,783	$	424,489	$	298,907	$	174,375	$	2,501,554

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| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || | Year Ended December 31, 2019 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (in thousands) | U.S. | | LAAP | | EMEA | | Canada | | Total | | | Product category net sales | | | | | | | | | | | | Apparel, Accessories and Equipment | 1,562,487 | | 395,002 | | 245,381 | | 138,292 | | $ | 2,341,162 | | Footwear | 380,520 | | 134,280 | | 121,691 | | 64,825 | | 701,316 | | | Total | $ | 1,943,007 | $ | 529,282 | $ | 367,072 | $ | 203,117 | $ | 3,042,478 | | Channel net sales | | | | | | | | | | | | Wholesale | 1,049,300 | | 272,389 | | 312,347 | | 148,760 | | $ | 1,782,796 | | DTC | 893,707 | | 256,893 | | 54,725 | | 54,357 | | 1,259,682 | | | Total | $ | 1,943,007 | $ | 529,282 | $ | 367,072 | $ | 203,117 | $ | 3,042,478 |

PERFORMANCE OBLIGATIONS

For the years December 31, 2021 and 2020, Net sales recognized from performance obligations related to prior periods were not material. Net sales expected to be recognized in any future period related to remaining performance obligations is not material.

CONTRACT BALANCES

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

NOTE 4 — CONCENTRATIONS

TRADE RECEIVABLES

The Company had one customer that accounted for approximately 14.3% and 14.3% of Accounts receivable, net at December 31, 2021 and 2020, respectively. No single customer accounted for 10% or more of Net sales for any of the years ended December 31, 2021, 2020 or 2019.

NOTE 5 — PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consisted of the following:

	December 31,
(in thousands)	2021		2020
Land and improvements	$	33,107	$	33,231
Buildings and improvements	209,792		209,251
Machinery, software and equipment	382,337		388,808
Furniture and fixtures	99,946		96,521
Leasehold improvements	155,872		152,852
Construction in progress	12,694		3,376
	893,748		884,039
Less accumulated depreciation	(602,660)		(574,247)
	$	291,088	$	309,792

Depreciation expense for Property, plant and equipment, net was $54.2 million, $60.9 million, and $59.8 million for the years ended December 31, 2021, 2020 and 2019, respectively.

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Impairment charges for property, plant and equipment are included in SG&A expense and were $0.5 million, $5.0 million, and $0.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. Charges during the years ended December 31, 2021, 2020 and 2019 were recorded primarily for certain underperforming retail stores in the U.S., EMEA and LAAP regions.

NOTE 6 — INTANGIBLE ASSETS, NET AND GOODWILL

Intangible assets, net consisted of the following:

	December 31,
(in thousands)	2021		2020
Intangible assets with definite lives:
Patents and purchased technology	$	14,198	$	14,198
Customer relationships	23,000		23,000
Gross carrying amount	37,198		37,198
Accumulated amortization:
Patents and purchased technology	(14,198)		(14,198)
Customer relationships	(19,013)		(17,363)
Accumulated amortization	(33,211)		(31,561)
Net carrying amount	3,987		5,637
Intangible assets with indefinite lives	97,921		97,921
Intangible assets, net	$	101,908	$	103,558

Amortization expense for intangible assets subject to amortization was $1.7 million, $2.5 million and $3.0 million for the years ended December 31, 2021, 2020 and 2019 respectively.

Impairment charges for intangible assets with indefinite lives are included in SG&A expense. For the year ended December 31, 2021 and 2019, there were no impairments recorded for intangible assets with indefinite lives. For the year ended December 31, 2020, an impairment charge of $17.5 million was recorded. The impairment of the prAna trademark and trade name intangible asset was determined as part of the annual impairment test. The fair value was estimated using a relief from royalty method under the income approach. Cash flow projections were developed in part from the Company's annual planning process. The discount rate was the estimated weighted-average costs of capital of the reporting unit from a market-participant perspective. The decline in estimated fair value from the fourth-quarter 2020 impairment test compared to the fourth-quarter 2019 impairment test reflected a lower estimated royalty rate and a decline in forecasted revenues.

Substantially all of the Company's goodwill is recorded in the U.S. segment. The Company determined that goodwill was not impaired for the years ended December 31, 2021, 2020, and 2019.

The following table presents the estimated annual amortization expense for the years 2022 through 2026:

(in thousands)
2022	$	1,650
2023	1,650
2024	688
2025	—
2026	—

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DOMESTIC CREDIT FACILITY

The Company has an unsecured, committed revolving credit facility that provides for funding up to $500.0 million. This credit agreement matures on December 30, 2025. Interest, payable monthly, is based on the Company's option of either LIBOR plus an applicable margin or a base rate. Base rate is defined as the highest of the following, plus an applicable margin:

•the administrative agent's prime rate;

•the higher of the federal funds rate or the overnight bank funding rate set by the Federal Reserve Bank of New York, plus 0.50%; or

•the one-month LIBOR plus 1.00%.

This credit agreement requires the Company to comply with certain financial covenants covering the Company's funded debt ratio and asset coverage ratio. The credit agreement also includes customary covenants that, among other things, limit or restrict the ability of the Company and its subsidiaries to incur additional indebtedness and liens, engage in mergers, acquisitions and dispositions, and engage in transactions with affiliates, as well as restrict certain payments, including dividends and share buybacks.

At December 31, 2021 and 2020, the Company was in compliance with all associated covenants and there was no balance outstanding.

INTERNATIONAL CREDIT FACILITY

The Company's European subsidiary has available an unsecured, committed line of credit, which are guaranteed by the Company, and provides for borrowing up to a maximum of €4.4 million (approximately US$5.0 million) at December 31, 2021, with borrowings to accrue interest at a base rate plus 75 basis points.

At December 31, 2021 and 2020, there was no balance outstanding.

NOTE 8 — ACCRUED LIABILITIES

Accrued liabilities consisted of the following:

	December 31,
(in thousands)	2021		2020
Sales reserves	$	98,998	$	83,175
Accrued salaries, bonus, paid time off and other benefits	121,074		80,074
Accrued import duties	17,272		18,522
Taxes other than income taxes payable	27,930		15,002
Product warranties	13,645		14,745
Other	37,566		45,760
	$	316,485	$	257,278

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A reconciliation of product warranties is as follows:

	Year Ended December 31,
(in thousands)	2021		2020		2019
Balance at beginning of year	$	14,745	$	14,466	$	13,186
Provision for warranty claims	2,179		3,033		5,152
Warranty claims	(2,917)		(3,128)		(3,810)
Other	(362)		374		(62)
Balance at end of year	$	13,645	$	14,745	$	14,466
NOTE 9 — LEASES
---

The components of lease cost consisted of the following:

	Year Ended December 31,
(in thousands)	2021		2020		2019
Operating lease cost	$	71,996	$	104,906	$	78,609
Variable lease cost	67,745		58,391		60,085
Short term lease cost	5,612		9,600		9,013
	$	145,353	$	172,897	$	147,707

For the year ended December 31, 2021, operating lease costs included $0.5 million of ROU impairment charges related to underperforming retail locations, as well as a gain of $8.6 million from the completion of lease termination negotiations and settlements related to certain prior year retail store closures. For the year ended December 31, 2020, operating lease cost included $16.5 million of accelerated amortization for retail locations that permanently closed during 2020 for which the related lease liabilities had not been extinguished as of December 31, 2020 due to ongoing negotiations with the landlords. In addition, for the year ended December 31, 2020, operating lease cost included $7.0 million of ROU asset impairment charges related to underperforming retail locations primarily in the U.S. segment for the year ended December 31, 2020. There was no impairment recorded for the year ended December 31, 2019.

In the periods presented, lease concessions reducing variable lease expense were not material.

The following table presents supplemental cash flow information:

	Year Ended December 31,
(in thousands)	2021		2020		2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	83,827	$	82,083	$	77,350
Operating lease liabilities arising from obtaining ROU assets(1)(2)	$	53,168	$	22,416	$	471,396
Reductions to ROU assets resulting from reductions to operating lease liabilities	$	118	$	6,400	$	783

(1) The year ended December 31, 2019 reflects the impact from amount initially capitalized in conjunction with the adoption of ASC 842.

(2) Includes amounts added to the carrying amount of lease liabilities resulting from lease modifications and reassessments.

The following table presents supplemental balance sheet information related to leases:

	December 31,
	2021		2020
Weighted average remaining lease term	5.72 years		6.16 years
Weighted average discount rate	3.25	%	3.72	%

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The following table presents the future maturities of lease liabilities as of December 31, 2021:

(in thousands)
2022	$	78,228
2023	72,487
2024	65,678
2025	55,817
2026	49,095
Thereafter	106,326
Total lease payments	427,631
Less: imputed interest	(42,536)
Total lease liabilities	385,095
Less: current obligations	(67,429)
Long-term lease obligations	$	317,666

As of December 31, 2021, the Company has additional operating lease commitments that have not yet commenced of $16.2 million. These leases will commence in 2022 with lease terms of approximately one to 10 years.

NOTE 10 — INCOME TAXES

INCOME TAX PROVISION

Consolidated income from continuing operations before income taxes consisted of the following:

	Year Ended December 31,
(in thousands)	2021		2020		2019
United States operations	$	318,306	$	29,154	$	247,642
Foreign operations	133,205		110,369		157,787
Income before income tax	$	451,511	$	139,523	$	405,429

The components of the provision for income taxes consisted of the following:

	Year Ended December 31,
(in thousands)	2021		2020		2019
Current:
Federal	$	51,790	$	18,435	$	41,148
State and local	14,429		4,929		7,458
Non-United States	33,825		26,897		30,930
	100,044		50,261		79,536
Deferred:
Federal	(3,042)		(14,728)		(7,887)
State and local	(266)		(5,097)		(999)
Non-United States	667		1,074		4,290
	(2,641)		(18,751)		(4,596)
Income tax expense	$	97,403	$	31,510	$	74,940

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The following is a reconciliation of the statutory federal income tax rate to the effective rate reported in the financial statements:

	Year Ended December 31,
(percent of income before tax)	2021		2020		2019
Provision for federal income taxes at the statutory rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net of federal benefit	2.5		1.5		1.7
Non-United States income taxed at different rates	2.7		2.1		(0.1)
Foreign tax credits	(2.4)		(0.9)		(0.1)
Adjustment to deferred taxes	—		(1.2)		(2.1)
Global Intangible Low-Taxed Income	0.1		0.1		—
Research credits	(0.4)		(1.4)		(0.5)
Withholding taxes	(1.4)		0.5		0.3
Excess tax benefits from stock plans	(0.9)		(0.8)		(1.6)
Other	0.4		1.7		(0.1)
Actual provision for income taxes	21.6	%	22.6	%	18.5	%

DEFERRED INCOME TAX BALANCES

Significant components of the Company's deferred taxes consisted of the following:

	December 31,
(in thousands)	2021		2020
Deferred tax assets:
Accruals and allowances	$	40,518	$	29,950
Lease liability	81,012		84,346
Capitalized inventory costs	23,950		24,222
Sales reserves	13,881		14,610
Stock compensation	6,329		6,078
Net operating loss carryforwards	22,767		24,253
Depreciation and amortization	22,076		29,358
Tax credits	387		844
Foreign currency	—		2,418
Other	2,164		2,304
Gross deferred tax assets	213,084		218,383
Valuation allowance	(22,502)		(23,534)
Net deferred tax assets	190,582		194,849
Deferred tax liabilities:
Depreciation and amortization	(10,414)		(16,206)
Prepaid expenses	(3,447)		(2,085)
ROU lease asset	(68,148)		(66,629)
Deferred tax liability associated with future repatriations	(13,069)		(19,008)
Foreign currency	(3,383)		—
Gross deferred tax liabilities	(98,461)		(103,928)
Total net deferred taxes	$	92,121	$	90,921

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Subsequent to the issuance of the Company’s December 31, 2020 consolidated financial statements, the Company identified that the Lease liability and corresponding ROU lease asset shown in the table above had been presented net with accruals and allowances, rather than gross. As a result, 2020 amounts in the table above have been revised from balances previously reported. The Company has assessed the qualitative and quantitative impact of the misstatement and determined it is not material to the 2020 financial statements. Further, the Company had previously recorded Sales reserves within Capitalized inventory costs, rather than presenting them separately and has reclassified such amounts to conform to the current year presentation.

The Company has foreign net operating loss carryforwards of $87.5 million as of December 31, 2021, of which $68.4 million have an unlimited carryforward period and $19.1 million expire between 2025 and 2040. The net operating losses result in deferred tax assets of $22.8 million and $24.3 million and were subject to a valuation allowance of $20.2 million and $21.2 million at December 31, 2021 and 2020, respectively.

At December 31, 2021, the Company had accumulated undistributed earnings generated by the Company's foreign subsidiaries of $333.9 million. As a result of the Tax Cuts and Jobs Act, these earnings have been subject to U.S. tax, so any further taxes associated with such earnings would generally be limited to foreign withholding and state taxes. The Company has recorded a deferred tax liability for these, except in the jurisdictions where we intend to indefinitely reinvest the earnings.

UNRECOGNIZED TAX BENEFITS

The Company conducts business globally, and, as a result, the Company or one or more of its subsidiaries file income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. The Company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as Canada, China, France, Japan, South Korea, Switzerland, and the United States. The Company has effectively settled Canadian tax examinations of all years through 2012, United States tax examinations of all years through 2016, Japanese tax examinations of all years through 2019, France tax examinations of all years through 2016, Swiss tax examinations of all years through 2016, Italy tax examinations of all years through 2016, and China tax examinations of all years through 2018. The Korean National Tax Service concluded an audit of the Company's 2009 through 2013 corporate income tax returns in 2014, and an audit of the Company's 2014 corporate income tax return in 2016. Due to the nature of the findings in both of these audits, the Company has invoked the Mutual Agreement Procedures outlined in the United States-Korean income tax treaty. The Company does not anticipate that adjustments relative to these findings, or any other ongoing tax audits, will result in material changes to its financial condition, results of operations or cash flows. As of December 31, 2021, the Company was under audit in the United States for tax years 2017 and 2018, Canada for tax years 2017 and 2018, and Korea for tax years 2016 through 2020. Other than the findings and audits previously noted, the Company is not currently under examination in any other major jurisdiction.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

	Year Ended December 31,
(in thousands)	2021		2020		2019
Balance at beginning of year	$	14,493	$	12,478	$	11,064
Increases related to prior year tax positions	355		1,903		4,374
Decreases related to prior year tax positions	(1,447)		(162)		(5,423)
Increases related to current year tax positions	883		906		4,991
Settlements	—		—		(1,464)
Expiration of statute of limitations	(429)		(632)		(1,064)
Balance at end of year	$	13,855	$	14,493	$	12,478

Due to the potential for resolution of income tax audits currently in progress, and the expiration of various statutes of limitation, it is reasonably possible that the unrecognized tax benefits balance may change within the twelve months following December 31, 2021 by a range of zero to $6.5 million. Open tax years, including those previously mentioned, contain matters that could be subject to differing

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interpretations of applicable tax laws and regulations as they relate to the amount, timing, or inclusion of revenue and expenses or the sustainability of income tax credits for a given examination cycle.

Unrecognized tax benefits of $12.9 million, $13.6 million and $11.5 million would affect the effective tax rate if recognized at December 31, 2021, 2020 and 2019, respectively.

The Company recognizes interest expense and penalties related to income tax matters in Income tax expense. The Company recognized a net increase of accrued interest and penalties of $0.3 million in 2021, and a net increase of accrued interest and penalties of $0.8 million in 2020 and a net reversal of accrued interest and penalties of $0.5 million in 2019, all of which related to uncertain tax positions. The Company had $2.6 million and $2.3 million of accrued interest and penalties related to uncertain tax positions at December 31, 2021 and 2020, respectively.

NOTE 11 — RETIREMENT SAVINGS PLANS

401(K) PROFIT-SHARING PLAN

The Company has a 401(k) profit-sharing plan, which covers substantially all United States employees. Participation begins the first day of the quarter following completion of 30 days of service. The Company, with approval of the Board of Directors, may elect to make discretionary matching or non-matching contributions. Costs recognized for Company contributions to the plan were $10.7 million, $10.1 million and $9.4 million for the years ended December 31, 2021, 2020 and 2019, respectively.

DEFERRED COMPENSATION PLAN

The Company sponsors a nonqualified retirement savings plan for certain senior management employees whose contributions to the tax qualified 401(k) plan would be limited by provisions of the Internal Revenue Code. This plan allows participants to defer receipt of a portion of their salary and incentive compensation and to receive matching contributions for a portion of the deferred amounts. Costs recognized for Company matching contributions to the plan totaled $0.2 million, $0.4 million and $0.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. Participants earn a return on their deferred compensation based on investment earnings of participant-selected investments. Deferred compensation, including accumulated earnings on the participant-directed investment selections, is distributable in cash at participant-specified dates or upon retirement, death, disability, or termination of employment.

The Company has purchased specific money market and mutual funds in the same amounts as the participant-directed investment selections underlying the deferred compensation liabilities. These investment securities and earnings thereon, held in an irrevocable trust, are intended to provide a source of funds to meet the deferred compensation obligations, subject to claims of creditors in the event of the Company's insolvency. Changes in the market value of the participants' investment selections are recorded as an adjustment to the investments and as unrealized gains and losses in SG&A expense. A corresponding adjustment of an equal amount is made to the deferred compensation liabilities and compensation expense, which is included in SG&A expense.

At December 31, 2021 and 2020, the long-term portion of the liability to participants under this plan was $21.8 million and $18.7 million, respectively, and was recorded in Other long-term liabilities. At December 31, 2021 and 2020, the current portion of the participant liability was $1.0 million and $1.2 million, respectively, and was recorded in Accrued liabilities. At December 31, 2021 and 2020, the fair value of the long-term portion of the investments related to this plan was $21.8 million and $18.7 million, respectively, and was recorded in Other non-current assets. At December 31, 2021 and 2020, the current portion of the investments related to this plan was $1.0 million and $1.2 million, respectively, and was recorded in Short-term investments.

NOTE 12 — COMMITMENTS AND CONTINGENCIES

LITIGATION

The Company is involved in litigation and various legal matters arising in the normal course of business, including matters related to employment, retail, intellectual property, contractual agreements, and various regulatory compliance activities. Management has considered facts related to legal and regulatory matters and opinions of counsel handling these matters, and does not believe the ultimate resolution of these proceedings will have a material adverse effect on the Company's financial position, results of operations or cash flows.

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INDEMNITIES AND GUARANTEES

During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These include (i) intellectual property indemnities to the Company's customers and licensees in connection with the use, sale or license of Company products, (ii) indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease, (iii) indemnities to customers, vendors and service providers pertaining to claims based on the negligence or willful misconduct of the Company, (iv) executive severance arrangements, and (v) indemnities involving the accuracy of representations and warranties in certain contracts. The duration of these indemnities, commitments and guarantees varies, and in certain cases, may be indefinite. The majority of these indemnities, commitments and guarantees do not provide for any limitation of the maximum potential for future payments the Company could be obligated to make. The Company has not recorded any liability for these indemnities, commitments and guarantees in the accompanying Consolidated Balance Sheets.

NOTE 13 — SHAREHOLDERS' EQUITY

Since the inception of the Company's stock repurchase plan in 2004 through December 31, 2021, the Company's Board of Directors has authorized the repurchase of $1.5 billion of the Company's common stock. Shares of the Company's common stock may be purchased in the open market or through privately negotiated transactions, subject to market conditions, and generally settle subsequent to the trade date. The repurchase program does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time.

Under this program as of December 31, 2021, the Company had repurchased 28.5 million shares at an aggregate purchase price of $1,183.7 million and had $316.3 million remaining available. During the year ended December 31, 2021, the Company purchased an aggregate of $165.9 million of common stock under this program.

NOTE 14 — STOCK-BASED COMPENSATION

At its Annual Meeting held on June 3, 2020, the Company’s shareholders approved the Company’s 2020 Stock Incentive Plan (the “2020 Plan”), and the 2020 Plan became effective on that date following such approval. The 2020 Plan replaced the Company’s 1997 Stock Incentive Plan (the "Prior Plan”) and no new awards will be granted under the Prior Plan. The terms and conditions of the awards granted under the Prior Plan will remain in effect with respect to awards granted under the Prior Plan. The Company has reserved 3.0 million shares of common stock for issuance under the 2020 Plan, plus up to an aggregate of 1.5 million shares of the Company’s common stock that were previously authorized and available for issuance under the Prior Plan. At December 31, 2021, 3,643,701 shares were available for future grants under the 2020 Plan and up to 94,528 additional shares that were previously authorized and available for issuance under the Prior Plan may become available for future grants under the 2020 Plan.

The Company's Stock Incentive Plan allows for grants of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, and other stock-based or cash-based awards. The Company uses original issuance shares to satisfy share-based payments.

STOCK-BASED COMPENSATION EXPENSE

Stock-based compensation expense consisted of the following:

	Year Ended December 31,
(in thousands)	2021		2020		2019
Cost of sales	$	313	$	303	$	278
SG&A expense	18,813		17,475		17,554
Pre-tax stock-based compensation expense	19,126		17,778		17,832
Income tax benefits	(4,465)		(4,015)		(4,009)
Total stock-based compensation expense, net of tax	$	14,661	$	13,763	$	13,823

The Company realized a tax benefit for the deduction from stock-based award transactions of $8.3 million, $4.1 million and $9.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.

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STOCK OPTIONS

Options to purchase the Company's common stock are granted at exercise prices equal to or greater than the fair market value of the Company's common stock on the date of grant. Options generally vest and become exercisable ratably on an annual basis over a period of four years and expire ten years from the date of the grant.

The fair value of stock options is determined using the Black-Scholes model. Key inputs and assumptions used in the model include the exercise price of the award, the expected option term, the expected stock price volatility of the Company's stock over the option's expected term, the risk-free interest rate over the option's expected term, and the Company's expected annual dividend yield. The option's expected term is derived from historical option exercise behavior and the option's terms and conditions, which the Company believes provide a reasonable basis for estimating an expected term. The expected volatility is estimated based on observations of the Company's historical volatility over the most recent term commensurate with the expected term. The risk-free interest rate is based on the United States Treasury yield approximating the expected term. The dividend yield is based on the expected cash dividend payouts.

The weighted average assumptions for stock options granted and resulting fair value is as follows:

	Year Ended December 31,
	2021	2020	2019
Expected option term	4.35 years	4.39 years	4.50 years
Expected stock price volatility	24.88%	21.19%	27.14%
Risk-free interest rate	0.54%	1.14%	2.49%
Expected annual dividend yield	1.09%	1.13%	1.03%
Weighted average grant date fair value per stock option granted	$17.95	$14.67	$22.51

The following table summarizes stock option activity under the Plan:

	Number of <br>Shares	Weighted <br> Average <br>Exercise <br>Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value (1)<br><br>(in thousands)
Options outstanding at January 1, 2019	1,604,621	$	53.86	6.95	$	48,703
Granted	395,653	93.98
Cancelled	(68,275)	74.10
Exercised	(452,325)	43.76
Options outstanding at December 31, 2019	1,479,674	66.74		7.11	49,930
Granted	660,071	87.25
Cancelled	(78,163)	83.76
Exercised	(142,419)	48.58
Options outstanding at December 31, 2020	1,919,163	74.45		7.19	29,489
Granted	687,772	95.90
Cancelled	(213,444)	89.96
Exercised	(459,957)	62.58
Options outstanding at December 31, 2021	1,933,534	$	83.19	7.26	$	29,889
Options vested and expected to vest at December 31, 2021	1,844,333	$	82.67	7.18	$	29,397
Options exercisable at December 31, 2021	773,731	$	69.79	5.40	$	21,744

(1) The aggregate intrinsic value above represents pre-tax intrinsic value that would have been realized if all options had been exercised on the last business day of the period indicated, based on the Company's closing stock price on that day.

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Stock option compensation expense for the years ended December 31, 2021, 2020 and 2019 was $6.9 million, $7.0 million and $6.2 million, respectively. At December 31, 2021, unrecognized costs related to outstanding stock options totaled $13.1 million, before any related tax benefit. The unrecognized costs related to stock options are being amortized over the related vesting period using the straight-line attribution method. These unrecognized costs related to stock options are being amortized over a weighted average period of 2.29 years. The aggregate intrinsic value of stock options exercised was $19.2 million, $4.9 million and $26.8 million for the years ended December 31, 2021, 2020 and 2019, respectively. The total cash received as a result of stock option exercises for the years ended December 31, 2021, 2020 and 2019 was $28.8 million, $6.9 million and $19.8 million, respectively.

RESTRICTED STOCK UNITS

Service-based restricted stock units are granted at no cost to key employees and generally vest over a period of four years. Performance-based restricted stock units are granted at no cost to certain members of the Company's senior executive team, excluding the Chief Executive Officer. Performance-based restricted stock units granted after 2009 generally vest over a performance period of between two and three years. Restricted stock units vest in accordance with the terms and conditions established by the Compensation Committee of the Board of Directors, and are based on continued service and, in some instances, on individual performance or Company performance or both.

The fair value of service-based and performance-based restricted stock units that are not eligible for dividends are valued at the closing price of the Company’s common stock on the date of grant, reduced by the present value of dividends not received during the vesting period. Other assumptions incorporated into the grant date fair value include the vesting period and the Company's expected annual dividend yield.

The weighted average assumptions for restricted stock units granted and resulting fair value are as follows:

	Year Ended December 31,
	2021	2020	2019
Vesting period	3.77 years	3.79 years	3.76 years
Expected annual dividend yield	1.04%	1.18%	0.97%
Weighted average grant date fair value per restricted stock unit granted	$96.07	$78.90	$94.58

The following table summarizes the restricted stock unit activity under the Plan:

	Number of<br><br>Shares	Weighted Average<br><br>Grant Date Fair Value Per Share
Restricted stock units outstanding at January 1, 2019	424,001	$	62.38
Granted	177,618	94.58
Vested(1)	(163,195)	60.45
Forfeited	(33,320)	72.35
Restricted stock units outstanding at December 31, 2019	405,104	76.45
Granted	216,318	78.90
Vested(1)	(160,229)	68.72
Forfeited	(35,918)	79.36
Restricted stock units outstanding at December 31, 2020	425,275	80.37
Granted	176,804	96.07
Vested(1)	(164,088)	75.61
Forfeited	(68,399)	86.38
Restricted stock units outstanding at December 31, 2021	369,592	$	88.88

(1) The number of vested units includes shares withheld by the Company to pay up to maximum statutory requirements to taxing authorities on behalf of the employee. For the years ended December 31, 2021, 2020 and 2019, the Company withheld 56,792, 54,543 and 56,843 shares, respectively, to satisfy $5.8 million, $4.5 million and $5.8 million of employees' tax obligations, respectively.

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Restricted stock unit compensation expense for the years ended December 31, 2021, 2020 and 2019 was $12.2 million, $10.8 million and $11.6 million, respectively. At December 31, 2021, unrecognized costs related to restricted stock units totaled $19.1 million, before any related tax benefit. The unrecognized costs related to restricted stock units are being amortized over the related vesting period using the straight-line attribution method. These unrecognized costs at December 31, 2021 are expected to be recognized over a weighted average period of 2.09 years. The total grant date fair value of restricted stock units vested during the years ended December 31, 2021, 2020 and 2019 was $12.4 million, $11.0 million and $9.9 million, respectively.

NOTE 15 — EARNINGS PER SHARE

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

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

	Year Ended December 31,
(in thousands, except per share amounts)	2021		2020		2019
Weighted average common shares outstanding, used in computing basic earnings per share	65,942		66,376		67,837
Effect of dilutive stock options and restricted stock units	473		396		656
Weighted average common shares outstanding, used in computing diluted earnings per share	66,415		66,772		68,493
Earnings per share:
Basic	$	5.37	$	1.63	$	4.87
Diluted	$	5.33	$	1.62	$	4.83

Stock options and service-based restricted stock units, and performance-based restricted stock representing 843,578, 1,122,935 and 405,928 shares of common stock for the years ended December 31, 2021, 2020 and 2019, respectively, were outstanding but were excluded from the computation of diluted EPS because their effect would be anti-dilutive under the treasury stock method or because the shares were subject to performance conditions that had not been met.

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

The following table sets forth the changes in Accumulated other comprehensive income (loss) attributable to the Company:

(in thousands)	Unrealized gains (losses)<br>on available-for-<br>sale securities		Unrealized holding <br>gains (losses) on <br>derivative transactions		Foreign currency<br> translation <br>adjustments		Total
Balance at January 1, 2019	$	(60)	$	11,964	$	(15,967)	$	(4,063)
Other comprehensive income before reclassifications	56		6,669		2,064		8,789
Amounts reclassified from accumulated other comprehensive loss (1)	—		(9,052)		—		(9,052)
Net other comprehensive income (loss) during the year	56		(2,383)		2,064		(263)
Purchase of non-controlling interest	—		(99)		—		(99)
Balance at December 31, 2019	(4)		9,482		(13,903)		(4,425)
Other comprehensive income (loss) before reclassifications	4		(7,218)		24,078		16,864
Amounts reclassified from accumulated other comprehensive loss (1)	—		(11,633)		—		(11,633)
Net other comprehensive income (loss) during the year	4		(18,851)		24,078		5,231
Balance at December 31, 2020	—		(9,369)		10,175		806
Other comprehensive income (loss) before reclassifications	—		16,113		(24,465)		(8,352)
Amounts reclassified from accumulated other comprehensive income (1)	—		3,170		—		3,170
Net other comprehensive income (loss) during the year	—		19,283		(24,465)		(5,182)
Balance at December 31, 2021	$	—	$	9,914	$	(14,290)	$	(4,376)

(1) Amounts reclassified are recorded in Net sales, Cost of sales, or Other operating income (expense), net on the Consolidated Statements of Operations. Refer to Note 18 for further information regarding reclassifications.

NOTE 17 — SEGMENT INFORMATION

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

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The following table presents financial information for the Company's reportable segments:

	Year Ended December 31,
(in thousands)	2021		2020		2019
Net sales to unrelated entities:
U.S.	$	2,060,300	$	1,603,783	$	1,943,007
LAAP	465,499		424,489		529,282
EMEA	382,060		298,907		367,072
Canada	218,543		174,375		203,117
	$	3,126,402	$	2,501,554	$	3,042,478
Segment operating income:
U.S.	$	536,475	$	250,485	$	456,656
LAAP	42,025		35,875		80,138
EMEA	65,496		31,235		45,419
Canada	52,731		37,620		39,576
Total segment operating income	696,727		355,215		621,789
Unallocated corporate expenses	(246,223)		(218,166)		(226,818)
Interest income, net	1,380		435		8,302
Other non-operating income (expense), net	(373)		2,039		2,156
Income before income tax	$	451,511	$	139,523	$	405,429
Depreciation and amortization expense:
U.S.	$	21,098	$	25,852	$	23,388
LAAP	5,733		5,756		5,956
EMEA	3,423		3,739		4,036
Canada	2,586		2,825		3,009
Unallocated corporate expense	23,082		25,244		23,367
	$	55,922	$	63,416	$	59,756
Accounts receivable, net:
U.S.	$	265,731	$	244,236
LAAP	85,696		83,671
EMEA	79,942		66,780
Canada	56,434		58,258
	$	487,803	$	452,945
Inventories, net:
U.S.	$	455,960	$	362,061
LAAP	77,620		94,448
EMEA	65,263		60,124
Canada	46,536		39,897
	$	645,379	$	556,530
Property, plant and equipment, net:
U.S.	$	232,610	$	245,690
Canada	24,898		25,992
All other countries	33,580		38,110
	$	291,088	$	309,792

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NOTE 18 — FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
---

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

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

The Company also uses currency forward contracts not formally designated as hedges to manage the consolidated currency exchange rate risk associated with the remeasurement of non-functional currency denominated monetary assets and liabilities by subsidiaries that use United States dollars, euros, Canadian dollars, yen, won, or renminbi as their functional currency. Non-functional currency denominated monetary assets and liabilities consist primarily of cash and cash equivalents, short-term investments, receivables, payables, deferred income taxes, and intercompany loans. The gains and losses generated on these currency forward contracts not formally designated as hedges are expected to be largely offset in Other non-operating income (expense), net by the gains and losses generated from the remeasurement of the non-functional currency denominated monetary assets and liabilities.

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

	December 31,
(in thousands)	2021		2020
Derivative instruments designated as cash flow hedges:
Currency forward contracts	$	485,083	$	417,707
Derivative instruments not designated as hedges:
Currency forward contracts	267,982		326,820

At December 31, 2021, $4.2 million of deferred net loss on both outstanding and matured derivatives recorded in Accumulated other comprehensive income (loss) are expected to be reclassified to Net income during the next twelve months as a result of underlying hedged transactions also being recorded in Net sales or Cost of sales in the Consolidated Statements of Operations. When outstanding derivative contracts mature, actual amounts ultimately reclassified to Net sales or Cost of sales in the Consolidated Statements of Comprehensive Income are dependent on United States dollar exchange rates in effect against the euro, pound sterling, renminbi, Canadian dollar, and yen as well as the euro exchange rate in effect against the pound sterling.

At December 31, 2021, the Company's derivative contracts had a remaining maturity of less than three years. The maximum net exposure to any single counterparty, which is generally limited to the aggregate unrealized gain of all contracts with that counterparty, was $4.1 million at December 31, 2021. All of the Company's derivative counterparties have credit ratings that are investment grade or higher. The Company is a party to master netting arrangements that contain features that allow counterparties to net settle amounts arising from multiple separate derivative transactions or net settle in the case of certain triggering events such as a bankruptcy or major default of one of the counterparties to the transaction. The Company has not pledged assets or posted collateral as a requirement for entering into or maintaining derivative positions.

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Table of Contents<br><br>Index to Notes toConsolidated Financial Statements

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

		December 31,
(in thousands)	Balance Sheet Classification	2021		2020
Derivative instruments designated as cash flow hedges:
Derivative instruments in asset positions:
Currency forward contracts	Prepaid expenses and other current assets	$	7,927	$	947
Currency forward contracts	Other non-current assets	10,142		1,126
Derivative instruments in liability positions:
Currency forward contracts	Accrued liabilities	2,545		7,573
Currency forward contracts	Other long-term liabilities	318		6,590
Derivative instruments not designated as cash flow hedges:
Derivative instruments in asset positions:
Currency forward contracts	Prepaid expenses and other current assets	1,470		1,650
Derivative instruments in liability positions:
Currency forward contracts	Accrued liabilities	1,027		2,268

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

	Statement Of Operations Classification		Year Ended December 31,
(in thousands)		2021			2020			2019
Currency Forward Contracts:
Derivative instruments designated as cash flow hedges:
Gain (loss) recognized in other comprehensive income (loss), net of tax	—		$	16,113		$	(7,218)		$	6,669
Gain (loss) reclassified from accumulated other comprehensive income (loss) to income for the effective portion	Net sales		(448)			191			338
Gain (loss) reclassified from accumulated other comprehensive income (loss) to income for the effective portion	Cost of sales		(4,072)			14,495			9,558
Gain reclassified from accumulated other comprehensive income (loss) to income as a result of cash flow hedge discontinuance	Other non-operating income (expense), net		451			817			—
Loss recognized in income for amount excluded from effectiveness testing and for the ineffective portion	Net sales		—			—			(43)
Gain recognized in income for amount excluded from effectiveness testing and for the ineffective portion	Cost of sales		—			—			2,380
Derivative instruments not designated as cash flow hedges:
Gain (loss) recognized in income	Other non-operating income (expense), net		(608)			(2,865)			411
NOTE 19 — FAIR VALUE MEASURES
---

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

COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 66

| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || Level 1 | — | observable inputs such as quoted prices for identical assets or liabilities in active liquid markets; | | --- | --- | --- | | Level 2 | — | inputs, other than the quoted market prices in active markets, that are observable, either directly or indirectly; or observable market prices in markets with insufficient volume or infrequent transactions; and | | Level 3 | — | unobservable inputs for which there is little or no market data available, that require the reporting entity to develop its own assumptions. |

The Company's assets and liabilities measured at fair value are categorized as Level 1 or Level 2 instruments. Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from inputs, other than quoted market prices in active markets, that are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions.

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

(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	2,677	$	—	$	—	$	2,677
Available-for-sale short-term investments:(1)
U.S. Government treasury bills	—		130,168		—		130,168
Other short-term investments:
Money market funds	73		—		—		73
Mutual fund shares	904		—		—		904
Other current assets:
Derivative financial instruments	—		9,397		—		9,397
Non-current assets:
Money market funds	2,219		—		—		2,219
Mutual fund shares	19,606		—		—		19,606
Derivative financial instruments	—		10,142		—		10,142
Total assets measured at fair value	$	25,479	$	149,707	$	—	$	175,186
Liabilities:
Accrued liabilities:
Derivative financial instruments	$	—	$	3,572	$	—	$	3,572
Other long-term liabilities
Derivative financial instruments	—		318		—		318
Total liabilities measured at fair value	$	—	$	3,890	$	—	$	3,890

(1) Available-for-sale short-term investments have remaining maturities of less than one year.

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Table of Contents<br><br>Index to Notes toConsolidated Financial Statements

Assets and liabilities measured at fair value on a recurring basis at December 31, 2020 are as follows:

(in thousands)	Level 1		Level 2			Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	119,378	$	—		$	—	$	119,378
United States government treasury bills	—		234,982			—		234,982
Short-term investments:
Money market funds	105		—		0	—		105
Mutual fund shares	1,119		—			—		1,119
Other current assets:
Derivative financial instruments	—		2,597			—		2,597
Non-current assets:
Money market funds	4,059		—			—		4,059
Mutual fund shares	14,657		—			—		14,657
Derivative financial instruments	—		1,126			—		1,126
Total assets measured at fair value	$	139,318	$	238,705		$	—	$	378,023
Liabilities:
Accrued liabilities:
Derivative financial instruments	$	—	$	9,841		$	—	$	9,841
Other long-term liabilities:
Derivative financial instruments	—		6,590			—		6,590
Total liabilities measured at fair value	$	—	$	16,431		$	—	$	16,431

NON-RECURRING FAIR VALUE MEASUREMENTS

The Company measured the fair value of certain trademark and trade name intangible assets and certain retail store long-lived assets consisting of property, plant and equipment, and lease ROU assets as part of impairment testing for the year ended December 31, 2021. The inputs used to measure the fair value of these assets are primarily unobservable inputs and, as such, considered Level 3 fair value measurements. See Notes 5, 6 and 9 for discussion of impairment charges.

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| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE | | --- | --- |

None.

ITEM 9A.	CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

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

Based on our evaluation, we, including, our Chief Executive Officer and Chief Financial Officer, have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Annual Report on Form 10-K.

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in the Exchange Act Rule 13a-15(f). All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Under the supervision and with the participation of management, we have assessed the effectiveness of our internal control over financial reporting as of December 31, 2021. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control - Integrated Framework (2013). Based on our assessment, we, including our Chief Executive Officer and Chief Financial Officer, have concluded our internal control over financial reporting is effective as of December 31, 2021.

The effectiveness of our internal control over financial reporting as of December 31, 2021 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in its report, which is included in Item 8 in this annual report.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

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

ITEM 9B.	OTHER INFORMATION

None.

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| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || PART III | | --- | | ITEM 10. | DIRECTORS, EXECUTIVES OFFICERS AND CORPORATE GOVERNANCE | | --- | --- |

The sections of our 2022 Proxy Statement entitled "PROPOSAL 1: ELECTION OF DIRECTORS," "CORPORATE GOVERNANCE - Oversight Documents - Code of Business Conduct and Ethics," and "CORPORATE GOVERNANCE - Board Structure - Committees" are incorporated herein by reference.

Information regarding our executive officers is included in Part I under "Information About Our Executive Officers".

ITEM 11.	EXECUTIVE COMPENSATION

The sections of our 2022 Proxy Statement entitled "EXECUTIVE COMPENSATION," "DIRECTOR COMPENSATION," "CORPORATE GOVERNANCE - Board Structure - Committees - Compensation Committee - Compensation Committee Interlocks and Insider Participation" and "COMPENSATION COMMITTEE REPORT" are incorporated herein by reference.

ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The sections of our 2022 Proxy Statement entitled "SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT" and "EQUITY COMPENSATION PLAN INFORMATION" are incorporated herein by reference.

ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The sections of our 2022 Proxy Statement entitled "CORPORATE GOVERNANCE - Certain Relationships and Related Person Transaction" and "CORPORATE GOVERNANCE - Board Structure - Independence" are incorporated herein by reference.

ITEM 14	PRINCIPAL ACCOUNTANT FEES AND SERVICES

The sections of our 2022 Proxy Statement entitled "PROPOSAL 2: RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - Principal Accountant Fees and Services" and "PROPOSAL 2: RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - Pre-Approval Policy" are incorporated herein by reference.

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| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || PART IV | | --- | | ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES | | --- | --- |

(a)(1) and (a)(2) Financial Statements | The Financial Statements of Columbia and Supplementary Data filed as part of this Annual Report on Form 10-K are on pages 39 to 68 of this Annual Report. The financial statement schedule required to be filed by Item 8 of this annual report and paragraph (b) of this Item 15 is included below.

(a)(3) | See Exhibit Index below for a description of the documents that are filed as Exhibits to this Annual Report on Form 10-K or incorporated herein by reference.

Schedule II
Valuation and Qualifying Accounts
(in thousands)	Balance at Beginning <br>of Period		Charged to <br>Costs and <br>Expenses		Deductions(1)		Other(2)		Balance at <br>End of <br>Period
Allowance for doubtful accounts:
Year Ended December 31, 2021	$	21,810	$	(10,758)	$	(210)	$	(1,949)	$	8,893
Year Ended December 31, 2020	$	8,925	$	19,156	$	(7,991)	$	1,720	$	21,810
Year Ended December 31, 2019	$	11,051	$	(108)	$	(1,235)	$	(783)	$	8,925

(1) Charges to the accounts included in this column are for the purposes for which the reserves were created.

(2) Amounts included in this column primarily relate to foreign currency translation.

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| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || EXHIBIT INDEX | | --- |

In reviewing the agreements included as exhibits to this Annual Report on Form 10-K, please remember they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about Columbia or the other parties to the agreements. The agreements may contain representations and warranties by each of the parties to the applicable agreement.

These representations and warranties have been made solely for the benefit of the other party or parties to the applicable agreement and:

•should not in all instances be treated as categorical statements of fact, but rather as a means of allocating the risk to one of the parties if those statements prove to be inaccurate;

•may have been qualified by disclosures that were made to the other party or parties in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;

•may apply standards of materiality in a manner that is different from what may be viewed as material to you or other investors; and

•were made only as of the date of the applicable agreement or other date or dates that may be specified in the agreement and are subject to more recent developments.

Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information about Columbia may be found elsewhere in this Annual Report on Form 10-K and Columbia's other public filings, which are available without charge through the SEC's website at http://www.sec.gov.

Exhibit No.		Exhibit Name
	3.1	Third Restated Articles of Incorporation (incorporated by reference to exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2000) (File No. 000-23939).
	3.1(a)	Amendment to Third Restated Articles of Incorporation (incorporated by reference to exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2002) (File No. 000-23939).
	3.1(b)	Second Amendment to Third Restated Articles of Incorporation (incorporated by reference to exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018) (File No. 000-23939).
	3.2	2000 Restated Bylaws of Columbia Sportswear Company, as amended (incorporated by reference to exhibit 3.2 to the Company's Form 8-K filed on March 26, 2019) (File No. 000-23939).
	4.1	See Article II of Exhibit 3.1, as amended, and Article I of Exhibit 3.2.
	4.2	Description of the Registrant's Securities Registered under Section 12 of the Exchange Act ofDescription of the Registrant's Securities Registered under Section 12 of the Exchange Act of 1934.
+	10.1	Columbia Sportswear Company 1997 Stock Incentive Plan, as amended (incorporated by reference to exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017) (File No. 000-23939).
†	10.2	Subscription and Shareholders' Agreement, dated August 6, 2012, by and among CSMM Hong Kong Limited, SCCH Limited, Columbia Sportswear Company and Swire Resources Limited (incorporated by reference to exhibit 10.1 of the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2012) (File No. 000-23939).
	10.3	Share purchase agreement, dated April 28, 2014, by and among Columbia Sportswear Company, prAna Living, LLC, the Shareholders of prAna Living, LLC and Steelpoint Capital Advisors, LLC as the shareholder representative (incorporated by reference to exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2014) (File No. 000-23939).
+	10.4	Employment Offer Letter from Columbia Sportswear Company to Franco Fogliato (incorporated by reference to exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017) (File No. 000-23939).
+	10.5(a)	Form of Nonstatutory Stock Option Agreement for stock options granted on or after January 23, 2009 (incorporated by reference to exhibit 10.2(e) to the Company's Annual Report on Form 10-K for the year ended December 31, 2008) (File No. 000-23939).
+	10.5(b)	Form of Nonstatutory Stock Option Agreement for stock options granted on or after June 7, 2012 (incorporated by reference to exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012) (File No. 000-23939).
+	10.5(c)	Form of Nonstatutory Stock Option Agreement for stock options granted on or after July 20, 2017 (incorporated by reference to exhibit 10.2(m) to the Company's Annual Report on Form 10-K for the year ended December 31, 2017) (File No. 000-23939).
+	10.5(d)	Form of Nonstatutory Stock Option Agreement for stock options granted on or after January 24, 2019 (incorporated by reference to exhibit 10.5(e) to the Company's annual Report on Form 10-K for the year ended December 31, 2018) (File No. 000-23939).
+	10.6	Form of Restricted Stock Unit Award Agreement for restricted stock units granted on or after June 7, 2012 (incorporated by reference to exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012) (File No. 000-23939).
+	10.6(a)	Form of Restricted Stock Unit Award Agreement for restricted stock units granted on or after July 20, 2017 (incorporated by reference to exhibit 10.2(l) to the Company's Annual Report on Form 10-K for the year ended December 31, 2017) (File No. 000-23939).
+	10.6(b)	Form of Restricted Stock Unit Award Agreement for restricted stock units granted on or after January 24, 2019 (incorporated by reference to exhibit 10.6(c) to the Company's Annual Report on Form 10-K for the year ended December 31, 2018) (File No. 000-23939).

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| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || Exhibit No. | | Exhibit Name | | --- | --- | --- | | + | 10.7 | Columbia Sportswear Company 401(k) Excess Plan (incorporated by reference to exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009) (File No. 000-23939). | | + | 10.7(a) | Columbia Sportswear Company 401(k) Excess Plan, as amended (incorporated by reference to exhibit 10.7(a) to the Company's Annual Report on Form 10-K for the year ended December 31, 2018) (File No. 000-23939). | | + | 10.7(b) | Columbia Sportswear Company 401(k) Excess Plan, as amended (incorporated by reference to exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) (File No. 000-23939). | | + | 10.8 | Columbia Sportswear Company 401(k) ExcessRetirementPlan | | + | 10.9 | Form of Performance-based Restricted Stock Unit Award Agreement for performance-based restricted stock units granted on or after December 17, 2013 (incorporated by reference to exhibit 10.2(l) to the Company's Annual Report on Form 10-K for the year ended December 31, 2013) (File No. 000-23939). | | + | 10.9(a) | Form of Performance-based Restricted Stock Unit Award Agreement for performance-based restricted stock units granted on or after January 24, 2019 (incorporated by reference to exhibit 10.8(a) to the Company's Annual Report on Form 10-K for the year ended December 31, 2018) (File No. 000-23939). | | + | 10.10 | Form of Long-Term Incentive Cash Award Agreement for cash awards granted under the Company's 1997 Stock Incentive Plan, on or after December 17, 2013 (incorporated by reference to exhibit 10.2(m) to the Company's Annual Report on Form 10-K for the year ended December 31, 2013) (File No. 000-23939). | | + | 10.10(a) | Form of Long-Term Incentive Cash Award Agreement for cash awards granted under the Company's 1997 Stock Incentive Plan on or after January 24, 2019 (incorporated by reference to exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019) (File 000-23939). | | + | 10.11 | Long Term Cash Incentive Plan of Columbia Sportswear Company, effective January 1, 2019 (incorporated by reference to exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019) (File No. 000-23939). | | + | 10.12 | Form of Long-Term Incentive Cash Award Agreement for cash awards granted under the Company's Long-Term Incentive Cash Plan granted on or after January 1, 2019 (incorporated by reference to exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019) (File No. 000-23939). | | + | 10.13 | Executive Incentive Compensation Plan, as amended (incorporated by reference to exhibit 10.3 to the Company's Quarterly report on Form 10-Q for the quarterly period ended March 31, 2019) (File No. 000-23939). | | + | 10.14 | Columbia Sportswear Company Second Amendment Change in Control Severance Plan (incorporated by reference to exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017) (File No. 000-23939). | | | 10.15 | Amended and Restated Credit Agreement dated April 17, 2019 among Columbia Sportswear Company, Wells Fargo Bank, National Association, as the administrative agent for the lenders and as a lender, and Bank of America, N.A., as a lender (incorporated by reference to the Company's Form 8-K filed on April 22, 2019) (File No. 000-23939). | | | 10.16 | First Amendment to Amended and Restated Credit Agreement dated March 26, 2020, among Columbia Sportswear Company, Wells Fargo Bank, National Association, as the administrative agent for the lenders and as a lender, and Bank of America, N.A., as a lender (incorporated by reference to exhibit 10.1 to the Company's Form 8-K filed on April 1, 2020) (File No. 000-23939). | | | 10.17 | Second Amended and Restated Credit Agreement dated April 15, 2020, among Columbia Sportswear Company, Wells Fargo Bank, National Association, as the administrative agent for the lenders and as a lender, and Bank of America, N.A., as a lender (incorporated by reference to exhibit 10.1 to the Company's Form 8-K filed on April 16, 2020) (File No. 000-23939). | | | 10.18 | First Amendment to Second Amended and Restated Credit Agreement, entered into as of July 10, 2020, among Columbia Sportswear Company, Wells Fargo Bank, National Association, as the administrative agent for the lenders and as a lender, and Bank of America, N.A., as a lender (incorporated by reference to exhibit 10.1 to the Company's Form 8-K filed on July 14, 2020) (File No. 000-23939). | | | 10.19 | Credit Agreement dated December 30, 2020, among Columbia Sportswear Company, JPMorgan Chase Bank, National Association, as the administrative agent for the lenders and as a lender, and the other lenders party thereto (incorporated by reference to exhibit 10.1 to the Company's Form 8-K filed on January 4, 2021) (File No. 000-23939). | | * | 10.20 | Form of Indemnity Agreement for Directors (incorporated by reference to exhibit 10.17 to the Company's Registration Statement Filed on Form S-1 filed on December 24, 1997) (File No. 333-43199). | | + | 10.20(a) | Form of Indemnity Agreement for Directors and Executive Officers (incorporated by reference to exhibit 10.23 to the Company's Annual Report on Form 10-K for the year ended December 31, 2004) (File No. 000-23939). | | + | 10.21 | 1999 Employee Stock Purchase Plan, as amendedhttp://www.sec.gov/Archives/edgar/data/1050797/000089102002000360/v80229ex10-21.txt(incorporated by reference to exhibit 10.21 to the Company's Annual Report on Form 10-K for the year ended December 31, 2001) (File No. 000-23939). | | + | 10.22 | Tax Differential on Supplemental Wages Agreement, dated November 1, 2019, by and between Columbia Sportswear Company and Franco Fogliato (incorporated by reference to exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) (File No. 000-23939). | | | 10.23 | Columbia Sportswear 2020 Stock Incentive Plan ("2020 Stock Incentive Plan") (incorporated by reference to Exhibit 99.1 to the Registrant's Registration Statement on Form S-8, filed on June 4, 2020) (File No. 333-238935). | | | 10.24 | Form of Nonstatutory Stock Option Agreement for stock options granted under the Company's 2020 Stock Incentive Plan (incorporated by reference to exhibit 10.2 to the Company's Form 8-K, filed on June 4, 2020) (File No. 000-23939). | | | 10.25 | Form of Restricted Stock Units Award Agreement for restricted stock units granted under the Company's 2020 Stock Incentive Plan (incorporated by reference to exhibit 10.3 to the Company's Form 8-K, filed on June 4, 2020) (File No. 000-23939). |

COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 73

| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || Exhibit No. | | Exhibit Name | | --- | --- | --- | | | 10.26 | Form of Performance-Based Restricted Stock Units Award Agreement for performance-based restricted stock units granted under the Company's 2020 Stock Incentive Plan (incorporated by reference to exhibit 10.4 to the Company's Form 8-K, filed on June 4, 2020) (File No. 000-23939). | | | 10.27 | Form of Long-Term Incentive Cash Award Agreement for cash awards granted under the Company's 2020 Stock Incentive Plan (incorporated by reference to exhibit 10.5 to the Company's Form 8-K, filed on June 4, 2020) (File No. 000-23939). | | | 21.1 | Subsidiaries of the Company. | | | 23.1 | Consent of Deloitte & Touche LLP. | | | 31.1 | Rule 13a-14(a) Certification of Timothy P. Boyle, Chairman, President and Chief Executive Officer. | | | 31.2 | Rule 13a-14(a) Certification of Jim A. Swanson, Executive Vice President and Chief Financial Officer. | | | 32.1 | Section 1350 Certification of Timothy P. Boyle, Chairman, President and Chief Executive Officer. | | | 32.2 | Section 1350 Certification of Jim A. Swanson, Executive Vice President and Chief Financial Officer. | | | 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | | | 101.SCH | XBRL Taxonomy Extension Schema Document | | | 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | | | 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | | | 101.LAB | XBRL Taxonomy Extension Label Linkbase Document | | | 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | | | 104 | Cover Page Interactive Data File, formatted as Inline XBRL and contained in Exhibit 101 |

• Management Contract or Compensatory Plan

† Confidential treatment has been granted for certain portions omitted from this exhibit pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. Confidential portions of this exhibit have been separately filed with the Securities and Exchange Commission.

* Incorporated by reference to the Company's Registration Statement on Form S-1 (Reg. No. 333-43199).

ITEM 16.	FORM 10-K SUMMARY

None.

COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 74

| Table of Contents<br><br>Index to Notes toConsolidated Financial Statements | | --- || SIGNATURES | | --- |

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

COLUMBIA SPORTSWEAR COMPANY
Date:	February 24, 2022	By:	/s/ JIM A. SWANSON
			Jim A. Swanson
			Executive Vice President and Chief Financial Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.

SIGNATURE		TITLE
/s/	TIMOTHY P. BOYLE
	Timothy P. Boyle	Chairman, President and Chief Executive Officer
		(Principal Executive Officer)
/s/	JIM A. SWANSON
	Jim A. Swanson	Executive Vice President and Chief Financial Officer
		(Duly Authorized Officer and Principal Financial and Accounting Officer)
/s/	STEPHEN E. BABSON
	Stephen E. Babson	Director
/s/	ANDY D. BRYANT
	Andy D. Bryant	Director
/s/	JOHN W. CULVER
	John W. Culver	Director
/s/	WALTER T. KLENZ
	Walter T. Klenz	Director
/s/	KEVIN MANSELL
	Kevin Mansell	Director
/s/	RONALD E. NELSON
	Ronald E. Nelson	Director
/s/	SABRINA L. SIMMONS
	Sabrina L. Simmons	Director
/s/	MALIA H. WASSON
	Malia H. Wasson	Director
Date: February 24, 2022

COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K | 75

Document

EXHIBIT 4.2

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

As of February 24, 2022, Columbia Sportswear Company (the “Company”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), our common stock (“Common Stock”).

Description of Common Stock

The following description of Common Stock is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our Third Restated Articles of Incorporation and the amendments thereto (collectively, the “Articles of Incorporation”) and our 2000 Restated Bylaws and the amendments thereto (collectively, the “Bylaws”), each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.2 is a part. We encourage you to read our Articles of Incorporation, our Bylaws and the applicable provisions of The Oregon Business Corporation Act, Chapter 60 of the Oregon Revised Statutes (the “OBCA”), for additional information.

Authorized Capital Shares

Our authorized capital shares consist of 250,000,000 shares of Common Stock and 10,000,000 shares of preferred stock (“Preferred Stock”). The outstanding shares of Common Stock are fully paid and nonassessable.

Voting Rights

Holders of Common Stock are entitled to one vote per share on any matter submitted to the shareholders and do not have any cumulative voting rights.

Dividend Rights

Subject to the preferential rights of holders of Preferred Stock, if any, holders of Common Stock are entitled to receive dividends as may from time to time be declared by the Board of Directors of the Company (the “Board”) out of funds legally available therefor. From time to time, our credit facilities may restrict or prohibit the paying of dividends without our lender’s consent.

Liquidation Rights

On dissolution of the Company, after any preferential amount with respect to Preferred Stock has been paid or set aside, the holders of Common Stock and the holders of any series of Preferred Stock, if any, entitled to participate in the distribution of assets are entitled to receive the net assets of the Company.

Other Rights and Preferences

Holders of Common Stock have no preemptive, conversion, redemption or sinking fund rights.

Anti-takeover Effects of Certain Provisions of the Articles of Incorporation and Bylaws

The provisions of the Company’s Articles and Bylaws summarized below may have an anti-takeover effect and may delay, defer or prevent a tender offer or takeover attempt.

Authorized but Unissued Securities

The existence of authorized but unissued shares of Common Stock may enable the Board to render more difficult or to discourage an attempt to obtain control of the Company by means of a merger, tender offer or otherwise.

In addition, the Board has the authority to issue Preferred Stock in one or more series and to fix the number of shares constituting any such series and the preferences, limitations and relative rights, including dividend rights, dividend rate, voting rights, terms of redemption, redemption price or prices, conversion rights and liquidation preferences of the shares constituting any series, without any further vote or action by the shareholders of the Company. The potential issuance of Preferred Stock may have the effect of delaying or preventing a change in control of the Company.

No Cumulative Voting

The Articles of Incorporation do not grant holders of the Common Stock the right to vote cumulatively. The absence of cumulative voting could have the effect of preventing shareholders holding a minority of the Company’s shares from obtaining representation on the Board.

Notice Provisions Relating to Shareholder Proposals and Nominees

The Company’s Bylaws contain provisions requiring shareholders give advance written notice to the Company of a proposal or director nomination in order to have the proposal or the nominee considered at an annual meeting of shareholders. The notice for a shareholder

proposal must be received at least 90 days, and no earlier than 120 days, before the first anniversary of the date of the proxy statement for the preceding year's annual meeting; provided, however, that if the date of the annual meeting is more than 30 days before or more than 70 days after the anniversary date, notice by the shareholder to be timely must be so delivered no earlier than 120 days before the annual meeting and no later than the later of 90 days prior to such annual meeting or 10 days following the day on which public announcement of the date of such meeting is first made by the Company. Notwithstanding anything in Section 1.5 of the Bylaws to the contrary, if the number of directors to be elected to the Board at an annual meeting is increased and there is no public announcement by the Company naming all of the nominees for director or specifying the size of the increased Board at least 100 days prior to the first anniversary of the preceding year's annual meeting, a shareholder's notice required by Section 1.5 of the Bylaws shall also be considered timely (but only with respect to nominees for any new positions created by such increase) if it is delivered to the Secretary at the principal executive offices of the Company not later than the close of business on the 10th day following the day on which the public announcement is first made by the Company.

Calling a Shareholder Meeting

Special meetings of the shareholders, for any purposes, unless otherwise prescribed by statute, may only be called by the President or the Board.

Oregon Control Share and Business Combination Statutes

The Company is subject to the Oregon Control Share Act (the "Control Share Act"). The Control Share Act generally provides that a person (the "Acquiror") who acquires voting stock of an Oregon corporation in a transaction (other than a transaction in which voting shares are acquired from the issuing public corporation) that results in the Acquiror holding more than 20%, 33 1/3% or 50% of the total voting power of the corporation (a "Control Share Acquisition") cannot vote the shares it acquires in the Control Share Acquisition ("control shares") unless voting rights are accorded to the control shares by (i) a majority of each voting group entitled to vote and (ii) the holders of a majority of the outstanding voting shares, excluding the control shares held by the Acquiror and shares held by the Company's officers and inside directors. The term "Acquiror" is broadly defined to include persons acting as a group.

The Acquiror may, but is not required to, submit to the Company a statement setting forth certain information about the Acquiror and its plans with respect to the Company. The statement may also request that the Company call a special meeting of shareholders to determine whether voting rights will be accorded to the control shares. If the Acquiror does not request a special meeting of shareholders, the issue of voting rights of control shares will be considered at the next annual or special meeting of shareholders. If the Acquiror's control shares are accorded voting rights and represent a majority or more of all voting power, shareholders who do not vote in favor of voting rights for the control shares will have the right to receive the appraised "fair value" of their shares, which may not be less than the highest price paid per share by the Acquiror for the control shares.

The Company is also subject to sections 60.825 to 60.845 of the OBCA, which govern business combinations between corporations and interested shareholders (the "Business Combination Act"). The Business Combination Act generally provides that if a person or entity acquires 15% or more of the outstanding voting stock of an Oregon corporation (an "Interested Shareholder"), the corporation and the Interested Shareholder, or any affiliated entity of the Interested Shareholder, may not engage in certain business combination transactions for three years following the date the person became an Interested Shareholder. Business combination transactions for this purpose include (a) a merger or plan of share exchange, (b) any sale, lease, mortgage or other disposition of 10% or more of the assets of the corporation and (c) certain transactions that result in the issuance or transfer of capital stock of the corporation to the Interested Shareholder. These restrictions do not apply if (i) the Interested Shareholder, as a result of the transaction in which such person became an Interested Shareholder, owns at least 85% of the outstanding voting stock of the corporation (disregarding shares owned by directors who are also officers and certain employee benefit plans), (ii) the board of directors approves the business combination or the transaction that resulted in the shareholder becoming an Interested Shareholder before the Interested Shareholder acquires 15% or more of the corporation's voting stock or (iii) the board of directors and the holders of at least two-thirds of the outstanding voting stock of the corporation (disregarding shares owned by the Interested Shareholder) approve the business combination after the Interested Shareholder acquires 15% or more of the corporation's voting stock.

The Control Share Act and the Business Combination Act have anti-takeover effects because they will encourage any potential acquirer to negotiate with the Company’s Board and will also discourage potential acquirers unwilling to comply with the provisions of these laws. An Oregon corporation may provide in its articles of incorporation or bylaws that the laws described above do not apply to its shares. The Company has not adopted such a provision.

Listing

The Common Stock is traded on The Nasdaq Stock Market LLC under the trading symbol “COLM.”

Transfer Agents and Registrar

The transfer agent and registrar for the Common Stock is Computershare Trust Company, Inc.

Document

EXHIBIT 10.8

Columbia Sportswear Company

401(k) Excess Retirement Plan

COLUMBIA SPORTSWEAR COMPANY

401(k) EXCESS RETIREMENT PLAN

TABLE OF CONTENTS

Page

Article I. Definitions	1
1.1Account Balance	1
1.2Administrator	1
1.3Affiliate	1
1.4Annual Account	2
1.5Annual Excess Deferral Amount	2
1.6Annual Installment Method	2
1.7Beneficiary	2
1.8Beneficiary Designation Form	2
1.9Benefit Distribution Date	2
1.10Board	2
1.11Bonus or Bonus Compensation	2
1.12Bonus Deferral Election	2
1.13Change in Control	2
1.14Claims Committee	3
1.15Code	3
1.16Company	3
1.17Company Excess Matching Amount	3
1.18Disability	3

i

1.19Election Form	4
1.20Employee	4
1.21Employer(s)	4
1.22ERISA	4
1.23401(k) Plan	4
1.24Participant	4
1.25Performance-Based Compensation	4
1.26Plan	4
1.27Plan Year	4
1.28Regular Compensation	4
1.29Regular Compensation Deferral Election	5
1.30Section 415 Compensation	5
1.31Separation from Service	6
1.32Termination Benefit	7
1.33Trust	7
1.34Unforeseeable Financial Emergency	8
Article II. Selection, Enrollment, Eligibility	8
2.1Selection by Administrator.	8
2.2Enrollment and Eligibility Requirements.	8
Article III. Deferral Commitments/Company Excess Matching Amounts/Vesting/Crediting/Taxes	8
3.1Maximum Deferral.	8
3.2Timing of Excess Deferral Elections; Effect of Election Form.	9
3.3Withholding and Crediting of Annual Excess Deferral Amounts.	11
3.4Company Excess Matching Amount.	11

ii

3.5Vesting.	11
3.6Crediting/Debiting of Account Balances.	12
3.7FICA and Other Taxes.	12
Article IV. Scheduled Distributions; Unforeseeable Financial Emergencies; Disability	13
4.1Scheduled Distributions.	13
4.2Postponing Scheduled Distributions.	14
4.3Other Benefits Take Precedence Over Scheduled Distributions.	14
4.4Unforeseeable Financial Emergencies.	14
4.5Disability.	15
Article V. Termination Benefit	15
5.1Termination Benefit.	15
5.2Payment of Termination Benefit.	15
5.3Small Balance Cashouts.	16
Article VI. Death Benefit	16
6.1Death Benefit.	16
6.2Payment of Death Benefit.	16
Article VII. Beneficiary Designation	17
7.1Beneficiary.	17
7.2Beneficiary Designation; Change.	17
7.3Acknowledgment.	17
7.4No Beneficiary Designation.	17
7.5Discharge of Obligations.	17
Article VIII. Leave of Absence	17
8.1Paid Leave of Absence.	17

iii

8.2Unpaid Leave of Absence.	17
Article IX. Termination of Plan, Amendment or Modification	18
9.1Termination of Plan.	18
9.2Termination of Plan within One Year of Change in Control.	18
9.3Amendment.	18
9.4Effect of Payment.	18
Article X. Administration	18
10.1Administrator Duties.	18
10.2Agents.	19
10.3Binding Effect of Decisions.	19
10.4Indemnity of Administrator and Claims Committee.	19
10.5Employer Information.	19
Article XI. Other Benefits and Agreements	19
11.1Coordination with Other Benefits.	19
Article XII. Claims Procedures	19
12.1Presentation of Claim.	19
12.2Notification of Decision.	20
12.3Review of a Denied Claim.	20
12.4Decision on Review.	20
12.5Legal Action.	21
Article XIII. Trust	21
13.1Establishment of the Trust.	21
13.2Interrelationship of the Plan and the Trust.	21
13.3Distributions From the Trust.	21
Article XIV. Miscellaneous	21

iv

14.1Status of Plan.	21
14.2Unsecured General Creditor.	21
14.3Employer’s Liability.	22
14.4Nonassignability.	22
14.5Not a Contract of Employment.	22
14.6Furnishing Information.	22
14.7Terms.	22
14.8Captions.	22
14.9Governing Law.	22
14.10Notice.	22
14.11Successors.	23
14.12Spouse’s Interest.	23
14.13Validity.	23
14.14Incompetent.	23
14.15Distribution in the Event of Income Inclusion Under Code Section 409A.	23

v

COLUMBIA SPORTSWEAR COMPANY

401(k) EXCESS RETIREMENT PLAN

Purpose

The purpose of this Plan is to provide specified benefits to a select group of management or highly compensated Employees who contribute materially to the continued growth, development and future business success of Columbia Sportswear Company (the “Company”), and its Affiliates (defined herein). This Plan shall be unfunded for tax purposes and for purposes of Title I of ERISA.

This Plan is intended to comply with all applicable laws, including Code Section 409A and related Treasury guidance and regulations, and shall be operated and interpreted in accordance with this intention.

This Plan is intended to be a plan described in 4 U.S.C. 114(b)(1)(I)(ii) and amounts payable to Participants under this Plan are intended to constitute “retirement income” within the meaning of 4 U.S.C. 114(b)(1). All amounts credited to Participant Account Balances under this Plan represent amounts that are not possible to be contributed to the Company’s 401(k) Plan (defined below), due to limitations under Code sections 401(a)(17), 402(g), 414(v), and 415(c).

The Plan is intended as a successor to, the Columbia Sportswear Company 401(k) Excess Plan (the “Prior Plan”) with respect to employees of Columbia Sportswear Company and its Affiliates, and will be construed consistently with such intent. Amounts deferred under the Prior Plan will continue to be governed by the Prior Plan and not this Plan. This Plan shall be effective commencing January 1, 2022 (the “Effective Date”).

ARTICLE I.

DEFINITIONS

For the purposes of this Plan, unless otherwise clearly apparent from the context, the following phrases or terms shall have the following indicated meanings:

1.1Account Balance shall mean, with respect to a Participant, an entry on the records of the Plan equal to the sum of the Participant’s Annual Accounts. The Account Balance shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan.

1.2Administrator shall mean the Company’s Chief Human Resources Officer, or the equivalent thereof.

1.3Affiliate shall mean a corporation, person, or other entity that is a member with the Company or any other Employer, or a controlled group under Code Section 414(b), a group of trades or businesses under common control under Code section 414(c), an affiliated service group under Code section 414(m), or a group that is designated a controlled group pursuant to Code section 414(o).

1.4Annual Account shall mean, with respect to a Participant, an entry on the records of the Plan equal to (a) the sum of the Participant’s Excess Deferral Amount and Company Excess Matching Amount for any one Plan Year, plus (b) amounts credited or debited to such amounts pursuant to this Plan, less (c) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that relate to the Annual Account for such Plan Year. The Annual Account shall be a bookkeeping entry only and shall be

utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan.

1.5Annual Excess Deferral Amount shall mean that portion of a Participant’s Regular Compensation and Bonus that a Participant defers in accordance with Article III for any one Plan Year, without regard to whether such amounts are withheld and credited during such Plan Year.

1.6Annual Installment Method shall mean the method used to determine the amount of each payment due to a Participant who has elected to receive a benefit over a period of years in accordance with the applicable provisions of the Plan. The amount of each annual payment due to the Participant shall be calculated by multiplying the balance of the Participant’s benefit by a fraction, the numerator of which is one and the denominator of which is the remaining number of annual payments due to the Participant. The amount of the first annual payment shall be calculated as of the close of business on or around the Participant’s Benefit Distribution Date, and the amount of each subsequent annual payment shall be calculated on or around each anniversary of such Benefit Distribution Date. For purposes of this Plan, the right to receive a benefit payment in annual installments shall be treated as the entitlement to a single payment.

1.7Beneficiary shall mean one or more persons, trusts, estates or other entities, designated in accordance with Article VII, that are entitled to receive benefits under this Plan upon the death of a Participant.

1.8Beneficiary Designation Form shall mean the written or electronic form established from time to time by the Administrator that a Participant returns to the Administrator to designate one or more Beneficiaries.

1.9Benefit Distribution Date shall mean the date upon which all or an objectively determinable portion of a Participant’s vested benefits will become eligible for distribution. Except as otherwise provided in the Plan, a Participant’s Benefit Distribution Date shall be determined based on the earliest to occur of an event or scheduled date set forth in Articles IV through VI, as applicable.

1.10Board shall mean the board of directors of the Company.

1.11Bonus or Bonus Compensation shall mean any annual incentive cash bonus earned by the Participant under a bonus program covering a performance period of at least one year. Bonus shall be calculated before reduction for compensation voluntarily deferred or contributed by the Participant pursuant to all qualified or nonqualified plans of the Employer and shall be calculated to include amounts not otherwise included in the Participant’s gross income under Code Sections 125, 402(e)(3), 402(h), or 403(b) pursuant to plans established by the Employer; provided, however, that all such amounts will be included in compensation only to the extent that had there been no such plan, the amount would have been payable in cash to the Employee.

1.12Bonus Deferral Election shall mean an irrevocable election made by a Participant to defer Bonus Compensation earned with respect to a given Plan Year. The irrevocability of the Bonus Deferral Election is subject to Section 4.4 (Unforeseeable Financial Emergency) and Section 4.5 (Disability). For the avoidance of doubt, no Bonus Deferral Election can be made by a Participant with respect to a given Plan Year unless that Participant also makes a Regular Compensation Deferral Election for that same Plan Year.

1.13Change in Control shall mean the occurrence of any of the following events:

(a)    Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total

voting power represented by the Company’s then outstanding voting securities, provided, however, that the following acquisitions shall not constitute a Change in Control: (i) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege where the security being so converted was not acquired directly from the Company by the party exercising the conversion privilege, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company, (iv) an acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act pursuant to a transaction that meets the conditions of clauses (i), (ii) and (iii) set forth in subsection (b) below), or (v) any acquisition approved by the Board; or

(b)    The consummation of a merger or consolidation of the Company with any other corporation or of the sale or disposition by the Company of all or substantially all of the Company’s assets, excluding, however, in each case, a transaction pursuant to which:

(i)    the individuals, entities or groups (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act) who are the beneficial owners of the total voting power represented by the voting securities of the Company immediately prior to such transaction will beneficially own, directly or indirectly, at least 50% of the outstanding shares of common stock, and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, of the Company or such surviving entity after the transaction in substantially the same proportions as their ownership, immediately prior to such transaction, of the total voting power represented by the voting securities of the Company;

(ii)    no individual, entity or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act (other than the Company, any employee benefit plan (or related trust) of the Company or the surviving entity) will beneficially own, directly or indirectly, 50% or more of, respectively, the total voting power represented by the voting securities of the Company or the surviving entity unless such ownership resulted solely from ownership of securities of the Company prior to such transaction; or

(iii)    individuals who were members of the incumbent Board will immediately after the consummation of the Company Transaction constitute at least a majority of the members of the board of directors of the Company or the surviving entity after the transaction.

1.14Claims Committee shall mean a committee consisting of the Company’s Chief Human Resources Officer, and two additional members as appointed on an ad hoc basis and in writing (which writing may be an e-mail) by the Administrator, one of which shall be a member of the Company’s 401(k) Excess Retirement Plan Committee and the second of which shall be a member of the Board’s Compensation Committee.

1.15Code shall mean the Internal Revenue Code of 1986, as it may be amended from time to time.

1.16Company shall mean Columbia Sportswear Company, an Oregon corporation, and any successor to all or substantially all of such company’s assets or business.

1.17Company Excess Matching Amount shall mean, for any one Plan Year, the amount determined in accordance with Section 3.4.

1.18Disability means a medically determinable physical or mental impairment that causes the Participant to be unable to perform the duties of his or her position or any similar position, and that is expected to last more than six (6) months or result in death.

1.19Election Form shall mean the form, which may be in electronic format, established from time to time by the Administrator that a Participant returns to the Administrator to make an election under the Plan. An Election Form will apply only to the Plan Year for which it is submitted.

1.20Employee shall mean a person classified as an employee by the Employer for payroll purposes.

1.21Employer(s) shall be defined as follows:

(a)    Except as otherwise provided in part (b) of this Section, the term “Employer” shall mean the Company and its Affiliates (now in existence or hereafter formed or acquired).

(b)    For the purpose of determining whether a Participant has experienced a Separation from Service, the term “Employer” shall mean:

(i)    The Company or any Affiliate for which the Participant performs services and with respect to which the legally binding right to compensation deferred or contributed under this Plan arises; and

(ii)    All other entities with which the entity described above would be aggregated and treated as a single employer under Code Section 414(b) (controlled group of corporations) and Code Section 414(c) (a group of trades or businesses, whether or not incorporated, under common control), as applicable. In order to identify the group of entities described in the preceding sentence, the Administrator shall use an ownership threshold of at least 50% as a substitute for the 80% minimum ownership threshold that appears in, and otherwise must be used when applying, the applicable provisions of (A) Code Section 1563 for determining a controlled group of corporations under Code Section 414(b), and (B) Treas. Reg. §1.414(c)-2 for determining the trades or businesses that are under common control under Code Section 414(c).

1.22ERISA shall mean the Employee Retirement Income Security Act of 1974, as it may be amended from time to time.

1.23401(k) Plan shall mean the Columbia Sportswear Company 401(k) Plan, which is sponsored by the Company and is intended to be a plan qualified under Code Section 401(a) that contains a cash or deferral arrangement described in Code Section 401(k), as may be amended from time to time, or any successor thereto.

1.24Participant shall mean any Employee (a) who is selected and becomes a participant in the Plan as provided in Article II, and (b) whose Account Balance has not been completely distributed.

1.25Performance-Based Compensation shall mean Bonus Compensation, the entitlement to or amount of which is contingent on the satisfaction of pre-established organizational or individual performance criteria relating to a performance period of at least 12 (twelve) consecutive months, as determined in accordance with Treas. Reg. §1.409A-1(e).

1.26Plan shall mean the Columbia Sportswear Company 401(k) Excess Retirement Plan, which shall be evidenced by this instrument, as it may be amended from time to time, and by any other documents that together with this instrument define a Participant’s rights to amounts credited to his or her Account Balance.

1.27Plan Year shall mean a period beginning on January 1 of each calendar year and continuing through December 31 of such calendar year.

1.28Regular Compensation shall mean the Participant’s Section 415 Compensation paid in a Plan Year, excluding all of the following items, whether or not includible in the Participant’s gross income:

(a)Reimbursements or other expense allowances;

(b)Fringe benefits (cash and non-cash) including, but not necessarily limited to, imputed income from disability insurance, domestic partner medical, dental, and vision coverage, and life insurance;

(c)Relocation costs and related stipends;

(d)Income from the exercise of Incentive Stock Options and nonqualified stock options, and from the settlement of restricted stock units;

(e)Compensation for services performed before the year in which the Employee became eligible to participate in the Plan pursuant to Article II;

(f)The “Goods and Service Allowance” and any similar compensation adjustment provided to expatriate employees;

(g)Severance pay and any similar payment upon termination of employment, other than regular wages or the cashout of paid time off;

(h)Achievement, length-of-service and other Employee awards, whether provided as gift card, points, or some other manner, including vacation trips or outings that are provided in kind rather than in cash, plus any “gross-up” or payment of taxes on such awards, trips or outings;

(i)Bonuses paid in the Plan Year but earned in a prior Plan Year; and

(j)Any other amounts paid in the Plan Year that were earned in a prior Plan Year.

1.29Regular Compensation Deferral Election shall mean an irrevocable election made by a Participant prior to the beginning of a Plan Year to defer Regular Compensation received during a Plan Year. The Regular Compensation Deferral Election is linked to the 401(k) Plan, such that the Regular Compensation Deferral Election made under this Plan also shall apply to the Participant with respect to the 401(k) Plan and shall be irrevocable with respect to that Plan Year for both this Plan and the 401(k) Plan. The irrevocability of the Regular Compensation Deferral Election is subject to Section 4.4. For the avoidance of doubt, the Regular Compensation Deferral Election percentage, for 401(k) Plan elective deferral purposes, shall apply to the Participant’s eligible “Compensation” as that term is defined in the 401(k) Plan, which definition of Compensation cannot be discretionarily changed effective in the middle of the 401(k) Plan’s fiscal year.

1.30Section 415 Compensation shall mean wages received in a Plan Year reportable on IRS Form W-2 for that Plan Year, adjusted in accordance with applicable Treasury Regulations, subject to the following rules:

(a)Section 415 Compensation shall include elective deferrals pursuant to Code Section 402(g) and contributions made at the employee’s election under any cafeteria or transportation benefit plan pursuant to Code Sections 125 or 132(f)(4).

(b)During any Military Leave, Section 415 Compensation shall be imputed at the rate the Participant would have been paid if not absent. If this amount is not reasonably certain, Section 415 Compensation shall be based on the Participant’s average Section 415 Compensation during the twelve (12) months immediately before the leave began, or all such months if fewer than 12. The amount of imputed Section 415 Compensation under this subsection shall be reduced by any differential wage payments, as defined in subsection (e) below, received by the Participant during the same period of Military

Leave. For purposes of this paragraph, “Military Leave” means periods of military service if the Participant returns with employment rights protected by law.

(c)Any amounts that otherwise satisfy the definition of Section 415 Compensation, but are paid after a Participant’s Separation from Service shall be included in the Participant’s Section 415 Compensation only as follows:

(1)Back pay, within the meaning of Treas. Reg. §1.415(c)-2(g)(8), shall be treated as Section 415 Compensation for the Plan Year to which the back pay relates.

(2)Compensation for services that is paid after Severance from Employment shall be included as Section 415 Compensation only if, absent the Severance from Employment, the compensation would have been paid to the Participant while employed by the Employer and the compensation is paid by the later of the date that is 2 ½ months after the employee's Severance from Employment or the last day of the Plan Year that includes the date of the Participant’s Separation from Service.

(3)Payment of unused accrued bona fide sick, vacation, or other leave that the Participant would have been able to use if employment had continued shall be treated as Section 415 Compensation, provided that the payment is made by the later of the date that is 2 ½ months after the Participant’s Separation from Service or the last day of the Plan Year that includes the date of the Participant’s Separation from Service.

(d)Section 415 Compensation shall include any differential wage Section 415 Compensation shall include any differential wage payment, as defined in Code Section 3401(h)(2). If an Employer makes such a differential wage payment during a Plan Year, all differential wage payments made by all Employers and their Affiliates during that Plan Year must satisfy the nondiscrimination requirements of Code Section 414(u)(12)(C).

For the avoidance of doubt, Section 415 Compensation is not be subject to the limitations under Code section 401(a)(17), as may from time to time be adjusted by the Secretary of the Treasury.

1.31Separation from Service shall mean a termination of services provided by a Participant to his or her Employer, whether voluntarily or involuntarily, other than by reason of death, as determined by the Administrator in accordance with Treas. Reg. §1.409A-1(h). In determining whether a Participant has experienced a Separation from Service, the following provisions shall apply:

(a)Separation from Service for Participants Employed as Employees. For a Participant who provides services to an Employer as an Employee, except as otherwise provided in part (c) of this Section, a Separation from Service shall occur when such Participant has experienced a termination of employment with such Employer.

(1)General Rule. A Participant shall be considered to have experienced a termination of employment when the facts and circumstances indicate that the Participant and his or her Employer reasonably anticipate that either (i) no further services will be performed for the Employer after a certain date, or (ii) that the level of bona fide services the Participant will perform for the Employer after such date (whether as an Employee or as an independent contractor) will permanently decrease to no more than 20% of the average level of bona fide services performed by such Participant (whether as an Employee or an independent contractor) over the immediately preceding 36-month period (or the full period of services to the Employer if the Participant has been providing services to the Employer less than 36 months). If a Participant is on a leave of absence that is not a bona fide leave of absence, then whether a Separation from Service has occurred shall be determined under this paragraph.

(2)Special Rule for Bona Fide Leaves of Absences. A bona fide leave of absence is any leave of absence where there is a reasonable expectation that the Participant will return to perform services for the Employer and either (A) the leave of absence does not exceed six (6) months or (B) the leave of absence exceeds 6 months but the Participant has either a contractual or statutory right to reemployment. If the leave of absence exceeds 6 months the Participant shall be treated as having a Separation from Service on the later of (x) the first day immediately following the end of such 6-month period or (y) the first day immediately following the day the Participant no longer retains a contractual or statutory right to reemployment. However, if the Employer takes action to terminate a Participant on a bona fide leave of absence, the Participant’s Separation from Service shall occur on the date on which such action was taken.

Notwithstanding the foregoing to the contrary, if the bona fide leave of absence is due to Disability, the Participant shall be treated as having a Separation from Service on the earlier of (a) the first day immediately following that date which is twenty-nine (29) months from the commencement of the leave of absence or (b) the date on which the Employer takes earlier action to terminate the Participant’s employment.

For the avoidance of doubt, amounts payable under the Plan due to Separation from Service must commence upon the expiration of the 6-month period or 29-month period, whichever applies, regardless of whether the Participant continues to be treated as employed by the Employer for other purposes.

(b)Separation from Service for Participants who are Independent Contractors. For a Participant, if any, who provides services to an Employer as an independent contractor (as that term is defined in Code section 409A), except as otherwise provided in part (c) of this Section, a Separation from Service shall occur upon the expiration of the contract (or in the case of more than one contract, all contracts) under which services are performed for such Employer, provided that the expiration of such contract(s) is determined by the Administrator to constitute a good-faith and complete termination of the contractual relationship between the Participant and such Employer.

(c)Separation from Service for Participants who are Both Employees and Independent Contractors. For a Participant, if any, who provides services to an Employer as both an Employee and an independent contractor, a Separation from Service generally shall not occur until the Participant has ceased providing services for such Employer as both an Employee and as an independent contractor, as determined in accordance with the provisions set forth in parts (a) and (b) of this Section, respectively. Similarly, if a Participant either (i) ceases providing services for an Employer as an independent contractor and begins providing services for such Employer as an Employee, or (ii) ceases providing services for an Employer as an Employee and begins providing services for such Employer as an independent contractor, the Participant will not be considered to have experienced a Separation from Service until the Participant has ceased providing services for such Employer in both capacities, as determined in accordance with the applicable provisions set forth in parts (a) and (b) of this Section.

Notwithstanding the foregoing provisions in this part (c), if a Participant provides services for an Employer as both an Employee and as a member of the Board, to the extent permitted by Treas. Reg. §1.409A-1(h)(5) the services provided by such Participant as a member of the Board shall not be taken into account in determining whether the Participant has experienced a Separation from Service as an Employee.

1.32Termination Benefit shall have the meaning described in Section 5.1(b).

1.33Trust shall mean one or more trusts established by the Company in accordance with Article XIII.

1.34Unforeseeable Financial Emergency shall mean a severe financial hardship of the Participant resulting from (a) an illness or accident of the Participant, the Participant’s spouse, the Participant’s Beneficiary, or the Participant’s dependent (as defined in Code Section 152 without regard to paragraphs (b)(1), (b)(2) and (d)(1)(b) thereof), (b) a loss of the Participant’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance, for example, not as a result of a natural disaster), or (c) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, all as determined by the Claims Committee based on the relevant facts and circumstances. For example, the following may constitute an Unforeseeable Financial Emergency: (i) the imminent foreclosure of or eviction from the Participant’s primary residence; (ii) the need to pay for medical expenses, including non-refundable deductibles, as well as for the costs of prescription drug medication; (iii) the need to pay for the funeral expenses of a spouse, a Beneficiary, or a dependent (as defined in Code Section 152 without regard to paragraphs (b)(1), (b)(2) and (d)(1)(b) thereof).

ARTICLE II. SELECTION, ENROLLMENT, ELIGIBILITY

2.1Selection by Administrator. Participation in the Plan shall be limited to a select group of management or highly compensated Employees. From that select group, the Administrator shall select, in its sole discretion, those individuals who may actually participate in this Plan as Participants.

Participation in the Plan will be on a Plan-Year-by-Plan-Year basis, and participation for any Plan Year will not necessarily entitle a Participant to participate for any other Plan Year.

2.2Enrollment and Eligibility Requirements.

(a)    As a condition to participation, each selected Employee shall complete, execute and return to the Administrator such written or electronic forms and information as the Administrator may require, which may include an Election Form and a Beneficiary Designation Form, by the deadline(s) established by the Administrator in accordance with the applicable provisions of this Plan. In addition, the Administrator shall establish from time to time such other enrollment requirements as it determines, in its sole discretion, are necessary.

(b)    If an Employee fails to meet all requirements established by the Administrator within the period required for a specified Plan Year, that Employee shall not be eligible to participate in the Plan during such Plan Year.

ARTICLE III. DEFERRAL COMMITMENTS/COMPANY EXCESS MATCHING AMOUNTS/VESTING/CREDITING/TAXES

3.1Maximum Deferral.

(a)    Annual Excess Deferral Amount. For each Plan Year, a Participant may elect to defer, as his or her Annual Excess Deferral Amount to be applied to Regular Compensation and/or Bonus Compensation up to the following maximum percentages for each such election elected:

Regular Compensation Deferral Election        70%

Bonus Deferral Election                70%

The percentage elected as the Participant’s Regular Compensation Deferral Election for a given Plan Year shall be linked to the Participant’s elective deferrals under the 401(k) Plan and shall be irrevocable with respect to both this Plan and the 401(k) Plan for the Plan Year to which it applies, subject to Section 4.4.

No Participant shall be permitted to make a Bonus Deferral Election for a given Plan Year unless that Participant also makes a separate Regular Compensation Deferral Election for that Plan Year.

(b)    Short Plan Year. Notwithstanding the foregoing, in the case of an individual first becoming a Participant after the first day of a Plan Year, then to the extent required by Section 3.2 and Code Section 409A and related Treasury Regulations, the maximum amount of the Participant’s Regular Compensation and Bonus Compensation that may be deferred by the Participant for the Plan Year shall be determined by applying the percentages set forth in Section 3.1(a) to the portion of such compensation attributable to services performed after the date that the Participant’s deferral election is made.

3.2Timing of Excess Deferral Elections; Effect of Election Form.

(a)    General Timing Rule for Excess Deferral Elections. Except as otherwise provided in this Section 3.2, in order for a Participant to make a valid election to defer Regular Compensation and/or Bonus Compensation the Participant must both (a) submit an Election Form that applies to this Plan and (b) acknowledge that the Regular Compensation Deferral Election percentage under this Plan shall also govern the Participant’s elective deferrals under the 401(k) Plan, or before the deadline established by the Administrator, which in no event shall be later than the December 31st preceding the Plan Year in which such compensation will be earned.

Any Regular Compensation Deferral Election made in accordance with this Section 3.2(a) shall be irrevocable as to this Plan as well as to the 401(k) Plan and any Bonus Deferral Election made in accordance with this Section 3.2 shall likewise be irrevocable as to this Plan; provided, however, that if the Administrator permits or requires Participants to make a Bonus Deferral Election by the deadline described above for an amount that qualifies as Performance-Based Compensation, the Administrator may permit a Participant to subsequently change his or her Bonus Deferral Election by submitting a new Election Form for this Plan in accordance with Section 3.2(d) below.

(b)    Timing of Excess Deferral Elections for Newly Eligible Plan Participants. A selected Employee who first becomes eligible to participate in the Plan on or after the beginning of a Plan Year, as determined in accordance with Treas. Reg. §1.409A-2(a)(7)(ii) and the “plan aggregation” rules provided in Treas. Reg. §1.409A-1(c)(2), may be permitted by the Administrator to make an election to defer the portion of Regular Compensation and/or Bonus attributable to services to be performed after such election, provided that the Participant submits an Election Form on or before the deadline established by the Administrator, which in no event shall be later than 30 days after the Participant first becomes eligible to participate in the Plan.

If a Bonus Deferral Election made in accordance with this Section 3.2(b) relates to Bonus Compensation earned based upon a specified performance period, the amount eligible for a Bonus Deferral Election shall be equal to (i) the total amount of Bonus for the performance period, multiplied by (ii) a fraction, the numerator of which is the number of days remaining in the service period after the Participant’s Bonus Deferral Election is made, and the denominator of which is the total number of days in the performance period.

Any deferral election made in accordance with this Section 3.2(b) shall become irrevocable as of the date the election is made, but in no event later than the 30th day after the date the selected Employee becomes eligible to participate in the Plan; as is the case in Section 3.2(a), any Regular Compensation Deferral Election under this Section 3.2(b) shall apply to both this Plan and the Participant’s deferral election under the 401(k) Plan and, once made, shall be irrevocable.

(c)    Special Rules as Apply to Annual Excess Deferral Amounts. In the event a Participant makes an Annual Excess Deferral Election for a given Plan Year, then:

(i)    With respect to Participant’s Regular Compensation deferral election, the election shall not apply to any Regular Compensation earned in that Plan Year unless and until that Participant’s elective deferrals in the 401(k) Plan equal the applicable limitations under Code sections 402(g)(1)(B) and 414(v)(2)(B)(i) as apply to that Participant for that Plan Year, as from time to time adjusted under Code sections 402(g)(4) and 414(v)(2)(C). For example, if the Participant will be at least age 50 by the end of the Plan Year ending December 31, 2022 (the “2022 Plan Year”), the Participant’s Regular Compensation Deferral Election shall not apply to the Participant’s Regular Compensation earned prior to the date the Participant’s elective deferrals and catch-up contributions in the 401(k) Plan total $27,000; if the Participant will not be at least age 50 by the end of the 2022 Plan Year, then the Participant’s Regular Compensation Deferral Election shall not apply to the Participant’s Regular Compensation earned prior to the date the Participant’s elective deferrals in the 401(k) Plan total $20,500.

Once the Participant’s elective deferrals and catch-up contributions, if applicable, credited to the Participant’s account balance in the 401(k) Plan have hit the applicable Code Section 402(g) limit for the Plan Year to which the Regular Compensation Deferral Election applies, the Regular Compensation Deferral Election shall automatically apply to Regular Compensation paid starting with the payroll coincident with the date the Code Section 402(g) limit was satisfied. For example, if a Participant who makes a Regular Compensation deferral election of 10%, for a given Plan Year, that 10% election shall apply to both this Plan and the 401(k) Plan for that Plan Year, as follows: (1) elective deferrals shall initially be made from the Participant’s compensation as defined under the 401(k) Plan to provide for 401(k) Plan elective deferrals; (2) once the Participant’s 401(k) Plan elective deferrals have hit the applicable deferral limits established under the Code, the 10% election shall thereafter apply to all Regular Compensation paid to the Participant under this Plan, starting with the pay date at which the Participant’s 401(k) deferrals hit the applicable deferral limits; and (3) shall remain in effect to defer a portion of the Participant’s Regular Compensation earned for the remainder of the Plan Year as Excess Deferrals. By way of further example, assume the Participant’s 401(k) Plan deferrals hit the applicable Code limit on the pay date ending June 15, 2022, and that the remaining Regular Compensation paid to the Participant on that pay date (net of the 401(k) deferral taken from that pay) is $15,000; a 10% Regular Compensation deferral election would apply to this $15,000 pay resulting in a $1,500 Excess Deferral into this Plan for the June 15, 2022 pay date, and the 10% Regular Compensation deferral election would remain in effect for all future pay dates through December 31, 2022, generating Excess Deferrals equal to 10% of Regular Compensation earned and payable as Regular Compensation after June 15, 2022 through the end of 2022.

(ii)    With respect to Participant’s Bonus Deferral Election, the election shall not apply to any Bonus Compensation earned in a Plan Year (and paid in the Plan Year or any subsequent Plan Year) unless and until that Participant’s elective deferrals and catch-up contributions , if applicable, credited to the Participant’s account balance in the 401(k) Plan for the Plan Year in which the Bonus was earned equaled the applicable Code Section 402(g) limitations as apply to that Participant for the Plan Year in which the Bonus was earned. For example, if the Participant was at least age 50 by the end of the Plan Year ending December 31, 2022 (the “2022 Plan Year”), the Participant’s Bonus Deferral Election shall not apply to any portion of the Participant’s Bonus earned during the 2022 Plan Year (and paid in early 2023) unless the Participant’s elective deferrals and catch-up contributions in the 401(k) Plan totaled $27,000 for the 2022 Plan Year; if the Participant was not at least age 50 by the end of the 2022 Plan Year, then the Participant’s Bonus Deferral Election shall not apply to the Participant’s Bonus earned during the 2022 Plan Year (and paid in early 2023) unless the Participant’s elective deferrals in the 401(k) Plan totaled $20,500 for the 2022 Plan Year.

For the avoidance of doubt, the dollar limits set forth in subsections (i) and (ii) above are based on the limits in effect for the calendar year beginning January 1, 2022; the Code section 402(g) limitations that apply in the Plan Year beginning January 1, 2023 (the “2023 Plan Year”) and future Plan Years will be as determined by the Secretary of the Treasury

(d)    Timing of Bonus Deferral Elections for Performance-Based Compensation. Subject to the limitations described below, the Administrator may determine that an irrevocable Bonus Deferral Election for an amount that qualifies as Performance-Based Compensation may be made by submitting an Election Form on or before the deadline established by the Administrator, which in no event shall be later than six (6) months before the end of the performance period that applies to that Performance-Based Compensation.

In order for a Participant to be eligible to make a Bonus Deferral Election for Performance-Based Compensation in accordance with the deadline established pursuant to this Section 3.2(d), the Participant must have performed services continuously from the later of (i) the beginning of the performance period for such Bonus Compensation, or (ii) the date upon which the performance criteria for such compensation are established, through the date upon which the Participant makes the deferral election for such compensation. In no event shall a deferral election submitted under this Section 3.2(d) be permitted to apply to any amount of Performance-Based Compensation that has become readily ascertainable.

3.3Withholding and Crediting of Annual Excess Deferral Amounts. The Regular Compensation portion of the Annual Excess Deferral Amount shall be withheld from the Participant’s Regular Compensation earned during the Plan Year. The Bonus portion of the Annual Excess Deferral Amount shall be withheld at the time the Bonus earned in the Plan Year to which the Bonus Deferral Election applies is or otherwise would be paid to the Participant, whether or not this occurs during the Plan Year itself. Annual Excess Deferral Amounts shall be credited to the Participant’s Annual Account for such Plan Year at the time such amounts would otherwise have been paid to the Participant.

Regular Compensation that is both (i) attributable solely to services performed during the final payroll period containing the last day of the Plan Year, and (ii) payable in the subsequent Plan Year, will be treated as earned in that subsequent Plan Year; accordingly, Regular Compensation related to such final payroll period shall be withheld in accordance with the Participant’s Regular Compensation Deferral Election applicable to such subsequent Plan Year.

3.4Company Excess Matching Amount. A Participant’s Company Excess Matching Amount for any Plan Year shall be an amount determined by the Administrator to make up for certain limits applicable to the 401(k) Plan for such Plan Year, as identified by the Administrator, or for such other purposes as determined by the Administrator in its sole discretion. The amount so credited to a Participant under this Plan for any Plan Year (a) may be smaller or larger than the amount credited to any other Participant, and (b) may differ from the amount credited to such Participant in the preceding Plan Year. The Participant’s Company Excess Matching Amount, if any, shall be credited to the Participant’s Annual Account for the applicable Plan Year on a date or dates to be determined by the Administrator. The amount (or the method or formula for determining the amount) of a Participant’s Company Excess Matching Amount shall be set forth in writing in one or more documents, which shall be deemed to be incorporated into this Plan in accordance with Section 1.26. When calculating the Company Excess Matching Amount for a given Plan Year, the Administrator shall take into consideration: (a) the Participant’s Regular Compensation actually earned and paid in that Plan Year, plus (b) Regular Compensation earned in that Plan Year but paid in the subsequent Plan Year; plus (c) the Bonus paid in that Plan Year but earned in the previous Plan Year; plus (d) any other amounts considered Regular Compensation or Bonus that are paid in the Plan Year (even if earned in the Prior Year).

3.5Vesting. Each Participant shall at all times be 100% vested in his or her Account Balance, as adjusted pursuant to Section 3.6.

3.6Crediting/Debiting of Account Balances. In accordance with, and subject to, the rules and procedures that are established from time to time by the Administrator, in its sole discretion, amounts shall be credited or debited to a Participant’s Account Balance in accordance with the following rules:

(a)    Measurement Funds. Subject to the restrictions found in Section 3.6(c) below, the Participant may elect one or more of the measurement funds selected by the Administrator (or the Administrator’s delegate), in its sole discretion, which are based on certain mutual funds, pooled accounts, and/or other investment vehicles commonly used for the investment of retirement funds (the “Measurement Funds”), for the purpose of crediting or debiting investment experience to his or her Account Balance. As necessary, the Administrator (or the Administrator’s delegate) may, in its sole discretion, discontinue, substitute or add a Measurement Fund.

(b)    Election of Measurement Funds. Subject to the restrictions found in Section 3.6(c) below, a Participant, in connection with his or her initial deferral election in accordance with Section 3.2 above, shall elect, on the Election Form, one or more Measurement Fund(s) (as described in Section 3.6(a) above) to be used to determine the amounts to be credited or debited to his or her Account Balance. If a Participant does not elect any of the Measurement Funds as described in the previous sentence, the Participant’s Account Balance shall automatically be allocated into the lowest-risk Measurement Fund, as determined by the Administrator, in its sole discretion. Subject to the restrictions found in Section 3.6(c) below, the Participant may (but is not required to) elect, by submitting an Election Form to the Administrator that is accepted by the Administrator, to add or delete one or more Measurement Fund(s) to be used to determine the amounts to be credited or debited to his or her Account Balance, or to change the portion of his or her Account Balance allocated to each previously or newly elected Measurement Fund. If an election is made in accordance with the previous sentence, it shall apply as of the first business day deemed reasonably practicable by the Administrator, in its sole discretion, and shall continue thereafter for each subsequent day in which the Participant participates in the Plan, unless changed in accordance with the previous sentence. Notwithstanding the foregoing, the Administrator, in its sole discretion, may impose limitations on the frequency with which one or more of the Measurement Funds elected in accordance with this Section 3.6(b) may be added or deleted by such Participant; furthermore, the Administrator, in its sole discretion, may impose limitations on the frequency with which the Participant may change the portion of his or her Account Balance allocated to each previously or newly elected Measurement Fund.

(c)    Proportionate Allocation. In making any election described in Section 3.6(b) above, the Participant shall specify on the Election Form, in increments of one percent (1%), the percentage of his or her Account Balance or Measurement Fund, as applicable, to be allocated/reallocated.

(d)    Crediting or Debiting Method. The performance of each Measurement Fund (either positive or negative) will be determined on a daily basis based on the manner in which such Participant’s Account Balance has been hypothetically allocated among the Measurement Funds by the Participant.

(e)    No Actual Investment. Notwithstanding any other provision of this Plan that may be interpreted to the contrary, the Measurement Funds are to be used for measurement purposes only, and a Participant’s election of any such Measurement Fund, the allocation of his or her Account Balance thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant’s Account Balance shall not be considered or construed in any manner as an actual investment of his or her Account Balance in any such Measurement Fund. In the event that the Company or the Trustee (as that term is defined in the Trust), in its own discretion, decides to invest funds in any or all of the investments on which the Measurement Funds are based, no Participant shall have any rights in or to such investments themselves. Without limiting the foregoing, a Participant’s Account Balance shall at all times be a bookkeeping entry only and shall not represent any investment made on his or her behalf by the Company or the Trust; the Participant shall at all times remain an unsecured creditor of the Company.

3.7FICA and Other Taxes.

(a)    Annual Excess Deferral Amounts. For each Plan Year in which an Annual Excess Deferral Amount is being withheld from a Participant, the Participant’s Employer(s) shall withhold from that portion of the Participant’s Regular Compensation and/or Bonus that is not being deferred, in a manner determined by the Employer(s), the Participant’s share of FICA and other employment taxes on such Annual Excess Deferral Amount. If necessary, the Administrator may reduce the Annual Excess Deferral Amount in order to comply with this Section 3.7.

(b)    Company Excess Matching Amounts. When a Participant becomes vested in a portion of his or her Account Balance attributable to any Company Excess Matching Amounts, the Participant’s Employer(s) shall withhold from that portion of the Participant’s Regular Compensation and/or Bonus that is not deferred, in a manner determined by the Employer(s), the Participant’s share of FICA and other employment taxes on such amounts. Alternatively, the Administrator may reduce the vested portion of the Participant’s Company Excess Matching Amount in order to comply with this Section 3.7.

(c)    Distributions. The Participant’s Employer(s), or the trustee of the Trust, shall withhold from any payments made to a Participant under this Plan all federal, state and local income, employment and other taxes required to be withheld by the Employer(s), or the trustee of the Trust, in connection with such payments, in amounts and in a manner to be determined in the sole discretion of the Employer(s) and the trustee of the Trust.

ARTICLE IV. SCHEDULED DISTRIBUTIONS; UNFORESEEABLE FINANCIAL EMERGENCIES; DISABILITY

4.1Scheduled Distributions. Subject to Section 5.3, the extent permitted by the Administrator, in connection with a Participant’s election to defer an Annual Excess Deferral Amount, the Participant may elect to postpone the timing of a payment of the Participant’s default Termination Benefit (pursuant to Article V) at which his or her Annual Account, as adjusted pursuant to Section 3.6, for such Plan Year will be paid (a “Scheduled Distribution”). The Participant may elect to schedule the date on which the Termination Benefit for any such Annual Account is paid to a Scheduled Distribution Date, such that the Benefit Distribution Date for the Annual Account subject to a Scheduled Distribution election shall be any date which is at least six (6) months after the Participant’s Separation from Service, such date not being later than the date the Participant attains age seventy (70), as designated by the Participant and as permitted on an Election Form approved by the Administrator. If a Participant does not make any Scheduled Distribution election with respect to the Termination Benefit for an Annual Account, then the Participant will be deemed to have elected to receive such Annual Account starting on the first day following that date which is six (6) months following the Participant’s Separation from Service.

For the avoidance of doubt:

(1) If no Scheduled Distribution is elected with respect to an Annual Account, the Benefit Distribution Date for that Annual Account will be that date which is six (6) months following the Participant’s Separation from Service.

(2) Where an Annual Account is subject to a Scheduled Distribution election, the Benefit Distribution Date shall not be earlier than the Participant’s Separation from Service and not later than the age designated by the Participant in that Scheduled Distribution election.

Example: Participant makes a Scheduled Distribution election for the Annual Account related to the Plan Year ending December 31, 2022 (the “2022 Annual Account”). Under this election, the Participant elects that the post-Separation from Service Benefit Distribution Date for such Annual Account will be age

70. If the Participant Separates from Service before age 70, the Benefit Distribution Date will be the date on which the Participant attains age 70 (subject to the requirement that no distributions payable due to a Participant’s Separation from Service can commence sooner than that date which is 6 months following the Participant’s Separation from Service).

4.2Postponing Scheduled Distributions. A Participant may elect to postpone a Scheduled Distribution described in Section 4.1 above, and have such amount paid out upon an allowable alternative Benefit Distribution Date designated in accordance with this Section 4.2. In order to make such an election, the Participant must submit an Election Form to the Administrator in accordance with the following criteria:

(a)    The election of the new Benefit Distribution Date will not take effect until twelve (12) months after the date on which the election is made;

(b)    The new Benefit Distribution Date selected by the Participant for such Scheduled Distribution will be at least five (5) years after the previously designated Benefit Distribution Date; and

(c)    The election must be made at least twelve (12) months prior to the Participant’s previously designated Benefit Distribution Date for such Scheduled Distribution.

For purposes of applying the provisions of this Section 4.2, a Participant’s election to postpone a Scheduled Distribution shall not be considered to be made until the date on which the election becomes irrevocable. Such an election shall become irrevocable no later than the date that is twelve (12) months prior to the Participant’s previously designated Benefit Distribution Date for such Scheduled Distribution.

4.3Other Benefits Take Precedence Over Scheduled Distributions. Should an event occur prior to any Benefit Distribution Date designated for a Scheduled Distribution that would trigger a benefit under Articles V through VI or Section 9.1, as applicable, all amounts subject to a Scheduled Distribution election shall be paid in accordance with the other applicable provisions of the Plan and not in accordance with this Article IV.

4.4Unforeseeable Financial Emergencies. If a Participant experiences an Unforeseeable Financial Emergency prior to the occurrence of a distribution event described in Article V, the Participant may petition the Claims Committee to receive a partial or full payout from the Plan. The Unforeseeable Financial Emergency payout, if any, from the Plan shall not exceed the lesser of (i) the Participant’s vested Account Balance calculated as of the close of business on or around the Benefit Distribution Date for such payout, as determined by the Claims Committee in accordance with provisions set forth below, or (ii) the amount necessary to satisfy the Unforeseeable Financial Emergency, plus amounts necessary to pay Federal, state, or local income taxes or penalties reasonably anticipated as a result of the distribution. A Participant shall not be eligible to receive an Unforeseeable Financial Emergency payout from the Plan to the extent that the Unforeseeable Financial Emergency is or may be relieved (A) through reimbursement or compensation by insurance or otherwise, (B) by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not itself cause severe financial hardship or (C) by cessation of Annual Excess Deferrals under this Plan.

The Administrator shall establish procedures for processing Unforeseeable Financial Emergency petitions, which shall include requirements for a written application, signed by the Participant and a statement of the facts underlying the Unforeseeable Financial Emergency, as well as any other items required by the Claims Committee or the Administrator.

If the Claims Committee, in its sole discretion, approves a Participant’s petition for Unforeseeable Financial Emergency payout from the Plan under this Section 4.4, the Participant’s Benefit Distribution Date for such payout shall be the date on which such Claims Committee approval occurs. In addition, in the event of such

approval the Participant’s outstanding Annual Excess Deferral elections under the Plan (i.e., Regular Compensation Deferral Elections and/or Bonus Deferral Elections) shall be cancelled, effective with the first pay period starting after the date the Claims Committee approves the Participant’s Unforeseeable Financial Emergency payout. For the avoidance of doubt, this cancellation shall require a cancellation of any future deferrals by the Participant into the 401(k) Plan for the Plan Year in which cancellation occurs, and the Participant cannot make any elective deferrals to the 401(k) Plan for the remainder of that Plan Year.

4.5Disability. If the Claims Committee determines that a Participant is or has become Disabled during a Plan Year, the Participant’s outstanding Excess Deferral elections under the Plan (i.e., Regular Compensation Deferral Elections and/or Bonus Deferral Elections) shall be cancelled, effective as soon as administratively practicable after the date the Claims Committee’s determination of Disability. For the avoidance of doubt, a determination that a Participant is Disabled does not necessarily mean the Participant has experienced a Separation from Service. Such Disabled Participant would be treated as Separated from Service on the earlier of (i) the date provided in Section 1.30(a)(2) or (ii) the date on which action is taken by the Company to completely terminate the Disabled Participant’s employment.

ARTICLE V. TERMINATION BENEFIT

5.1Termination Benefit.

(a)    Form of Payment of Annual Accounts. Subject to Section 5.3, if a Participant experiences a Separation from Service, the Participant will receive his or her vested benefit from Annual Accounts in the form of a lump sum payment or annual installment payments, as elected by the Participant in accordance with Section 5.2.

(b)    Termination Benefit Defined. A benefit payable pursuant to this Article will be referred to herein as the “Termination Benefit”.

(c)    Timing of Termination Benefits. A Participant’s Termination Benefit will be calculated as of the close of business on or around the Benefit Distribution Date for such benefit, which, absent a Scheduled Distribution Date, will be the first day after the end of the 6-month period immediately following the date on which the Participant experiences such Separation from Service.

5.2Payment of Termination Benefit.

(a)    Election of Payment Form. Subject to Section 5.3, to the extent permitted by the Administrator, in connection with a Participant’s election to defer an Annual Excess Deferral Amount, the Participant may elect the form of Termination Benefit in which his or her Annual Account for such Plan Year will be paid. The Participant may elect to receive the Termination Benefit for each Annual Account in the form of (i) a lump sum payment, or (ii) pursuant to an Annual Installment Method of up to ten (10) years. If a Participant does not make any election with respect to the Termination Benefit for an Annual Account, then the Participant will be deemed to have elected to receive such Annual Account as a lump sum.

(b)    Modification of Payment Form. A Participant may change the form of Termination Benefit payment for an Annual Account by submitting an Election Form to the Administrator in accordance with the following criteria:

(i)    The election will not take effect until twelve (12) months after the date on which the election is made;

(ii)    The new Benefit Distribution Date for such Annual Account will be at least five (5) years after the Benefit Distribution Date that would otherwise have been applicable to such Annual Account; and

(iii)    The election must be made at least twelve (12) months prior to the Benefit Distribution Date that would otherwise have been applicable to such Annual Account.

For purposes of applying the provisions of this Section 5.2(b), a Participant’s election to change the form of Termination Benefit payment for an Annual Account will not be considered to be made until the date on which the election becomes irrevocable. Such an election will become irrevocable no later than the date that is twelve (12) months prior to the Benefit Distribution Date that would otherwise have been applicable to such Annual Account. Subject to the requirements of this Section 5.2(b), the Election Form most recently accepted by the Administrator that has become effective for an Annual Account will govern the form of payout of such Annual Account.

(c)    Timing of Payments. The lump sum payment will be made, or installment payments will commence, upon the Participant’s Benefit Distribution Date. Remaining installments, if any, will be paid upon each anniversary of the Participant’s Benefit Distribution Date.

5.3Small Balance Cashouts.

(a)    Generally. Except as provided in subsection (c) below, if at any time following a Participant’s Separation from Service a Participant’s vested Account Balance under this Plan does not exceed five thousand dollars ($5,000), the Administrator shall pay the Participant’s entire vested Account Balance in an immediate single-sum payment, but not sooner than the first day following that date which is six (6) months following the Participant’s Separation from Service.

(b)    Documentation of Determination. Any exercise of the Administrator’s discretion pursuant to subsection (a) will be evidenced in writing no later than the date of the distribution.

(c)    Six Month Delay. Notwithstanding the foregoing, no payment under this Section made on account of a Participant’s Separation from Service will be made within six (6) months after the date the Participant Separates from Service.

ARTICLE VI. DEATH BENEFIT

6.1Death Benefit. In the event of a Participant’s death prior to the complete distribution of his or her vested Account Balance, the Participant’s Beneficiary(ies) shall receive the Participant’s unpaid vested Account Balance in a lump sum payment (the “Death Benefit”). The Death Benefit shall be calculated as of the close of business on or around the Benefit Distribution Date for such benefit, which shall be the date of the Participant’s death.

6.2Payment of Death Benefit. The Death Benefit shall be paid to the Participant’s Beneficiary(ies) upon the Participant’s Benefit Distribution Date.

ARTICLE VII. BENEFICIARY DESIGNATION

7.1Beneficiary. Each Participant shall have the right, at any time, to designate his or her Beneficiary(ies) (both primary as well as contingent) to receive any benefits payable under the Plan to a beneficiary upon the death of a Participant. The Beneficiary designated under this Plan may be the same as or different from the Beneficiary designation under any other plan of an Employer in which the Participant participates.

7.2Beneficiary Designation; Change. A Participant shall designate his or her Beneficiary by completing the Beneficiary Designation Form, and returning it to the Administrator or its designated agent. A Participant shall have the right to change a Beneficiary by completing and otherwise complying with the terms of the Beneficiary Designation Form and the Administrator’s rules and procedures, as in effect from time to time. Upon the acceptance by the Administrator of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be canceled. The Administrator shall be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Administrator prior to his or her death.

7.3Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received and acknowledged by the Administrator or its designated agent.

7.4No Beneficiary Designation. If a Participant fails to designate a Beneficiary as provided in Sections 7.1, 7.2 and 7.3 above, or if all designated Beneficiaries predecease the Participant or die prior to complete distribution of the Participant’s benefits, then the Participant’s designated Beneficiary shall be deemed to be his or her surviving spouse. If the Participant has no surviving spouse, the benefits remaining under the Plan to be paid to a Beneficiary shall be payable to the executor or personal representative of the Participant’s estate.

7.5Discharge of Obligations. The payment of benefits under the Plan to a Beneficiary shall fully and completely discharge all Employers and the Administrator from all further obligations under this Plan with respect to the Participant.

ACTICLE VIII. LEAVE OF ABSENCE

8.1Paid Leave of Absence. If a Participant is authorized by the Participant’s Employer to take a paid leave of absence from the employment of the Employer, and such leave of absence does not constitute a Separation from Service, (a) the Participant shall continue to be considered eligible for the benefits provided under the Plan, and (b) the Annual Excess Deferral Amount shall continue to be withheld during such paid leave of absence in accordance with Section 3.2.

8.2Unpaid Leave of Absence. If a Participant is authorized by the Participant’s Employer to take an unpaid leave of absence from the employment of the Employer for any reason, and such leave of absence does not constitute a Separation from Service, such Participant shall continue to be eligible for the benefits provided under the Plan. During the unpaid leave of absence, the Participant shall not be allowed to make any additional deferral elections. If the Participant leaves and returns from unpaid leave during the same Plan Year, the Annual Excess Deferral Election in place for that Plan Year shall continue to prospectively

apply for Regular Compensation earned during the Plan Year following the Participant’s return as well as to Bonus compensation earned during that Plan Year.

ARTICLE IX. TERMINATION OF PLAN, AMENDMENT OR MODIFICATION

9.1Termination of Plan. The Company expects the Plan to be continued indefinitely, but reserves the right to terminate the Plan at any time by written action of the Company’s Chief Executive Officer. If the Plan is terminated under this Section 9.1, the value of the vested Account Balances shall be paid to Participants and Beneficiaries in a single lump-sum cash payment on the earliest date permissible under Code Section 409A. For the avoidance of doubt, no acceleration of distributions on account of Plan termination under this Section 9.1 are permitted unless all agreements, methods, programs and other arrangements sponsored by the Company or any Employer that are required to be aggregated with this Plan under Treas. Reg. § 1.409A-1(c)(2) also are terminated and liquidated.

9.2Termination of Plan within One Year of Change in Control. In the event of a Change in Control, if the purchaser of the Company or the Company’s assets does not agree to assume or continue the Plan, then the Company’s Chief Executive Officer shall take irrevocable action to terminate the Plan within twelve (12) months of the Change in Control. If the Plan is terminated under this Section 9.2, the value of the vested Account Balances shall be paid to Participants and Beneficiaries in a single lump-sum cash payment on the earliest date permissible under Code Section 409A. For the avoidance of doubt, no acceleration of distributions on account of Plan termination under this Section 9.1 are permitted unless all agreements, methods, programs and other arrangements sponsored by the Company or any Employer that are required to be aggregated with this Plan under Treas. Reg. § 1.409A-1(c)(2) also are terminated and liquidated with respect to each Participant who experienced the Change in Control event.

9.3Amendment. The Company’s Chief Executive Officer may, at any time, amend or modify the Plan in whole or in part; any such amendment shall be in writing. Notwithstanding the foregoing, (a) no amendment or modification shall be effective to decrease the value of a Participant’s vested Account Balance in existence at the time the amendment or modification is made, and (b) no amendment or modification of this Section 9.2 of the Plan shall be effective.

9.4Effect of Payment. The full payment of the Participant’s vested Account Balance in accordance with the applicable provisions of the Plan shall completely discharge all obligations to a Participant and his or her designated Beneficiaries under this Plan.

ARTICLE X. ADMINISTRATION

10.1Administrator Duties. Except as otherwise provided in this Article, this Plan shall be administered by the Administrator. The Administrator shall also have the discretion and authority to (a) make, amend, interpret, and enforce all appropriate rules and regulations for the administration of this Plan, and (b) decide or resolve any and all questions, including benefit entitlement determinations and interpretations of this Plan, as may arise in connection with the Plan. Any individual serving as the Administrator and who is a Participant shall not act on any matter relating solely to himself or herself. When making a determination or calculation, the Administrator shall be entitled to rely on information furnished by a Participant or the Company.

Notwithstanding any other provision of the Plan except provisions relating to compliance with Code Section 409A, the Administrator may take any action it deems is necessary to assure compliance with any

policy of the Company respecting insider trading as may be in effect from time to time. Such actions may include altering the effective date of intra-fund transfers or the distribution date of Annual Accounts, to the extent permitted under Code Section 409A. Any such actions shall alter the normal operation of the Plan to the minimum extent necessary.

10.2Agents. In the administration of this Plan, the Administrator may, from time to time, employ agents and delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel.

10.3Binding Effect of Decisions. The decision or action of the Administrator with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Plan.

10.4Indemnity of Administrator and Claims Committee. The Employer shall indemnify and hold harmless the members of the Claims Committee, the Administrator and any Employee to whom the duties of the Administrator are delegated against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan, except in the case of willful misconduct by the Claims Committee, any of its members, the Administrator or any such Employee.

10.5Employer Information. To enable the Administrator and/or Claims Committee to perform its functions hereunder, the Company shall supply full and timely information to the Administrator and/or Claims Committee on all matters relating to the Plan, the Trust, the Participants and their Beneficiaries, the Account Balances of the Participants, the compensation of its Participants, the date and circumstances of the Separation from Service or death of its Participants, and such other pertinent information as the Administrator and/or Claims Committee may reasonably require.

ARTICLE XI. OTHER BENEFITS AND AGREEMENTS

11.1Coordination with Other Benefits. The benefits provided for a Participant and Participant’s Beneficiary under the Plan are in addition to any other benefits available to such Participant under any other plan or program for employees of the Participant’s Employer. The Plan shall supplement and shall not supersede, modify or amend any other such plan or program except as may otherwise be expressly provided.

ARTICLE XII. CLAIMS PROCEDURES

12.1Presentation of Claim. Any Participant or Beneficiary of a deceased Participant (such Participant or Beneficiary being referred to below as a “Claimant”) may deliver to the Claims Committee a written claim for a determination with respect to the amounts distributable to such Claimant from the Plan, eligibility for Plan participation, or any other question or issue regarding such Claimant’s rights under the Plan (referred to herein as a “claim”). If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within 60 days after such notice was received by the Claimant. All other claims must be made within 180 days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant. Additionally, upon denial of an appeal pursuant to this Article, a Claimant shall have 180 days within which to bring suit against the Plan or Employers for any claim related to such denied appeal; any such suit initiated after such 180-day period shall be precluded.

12.2Notification of Decision. The Claims Committee shall consider a Claimant’s claim within a reasonable time, but no later than 90 days after receiving the claim. If the Claims Committee determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to the Claims Committee prior to the termination of the initial 90 day period. In no event shall such extension exceed a period of 90 days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Claims Committee expects to render the benefit determination. The Claims Committee shall notify the Claimant in writing:

(a)    that the Claimant’s requested determination has been made, and that the claim has been allowed in full; or

(b)    that the Claims Committee has reached a conclusion contrary, in whole or in part, to the Claimant’s requested determination, and such notice must set forth in a manner calculated to be understood by the Claimant:

(i)    the specific reason(s) for the denial of the claim, or any part of it;

(ii)    specific reference(s) to pertinent provisions of the Plan upon which such denial was based;

(iii)    a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary;

(iv)    an explanation of the claim review procedure set forth in Section 12.3 below; and

(v)    a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review.

12.3Review of a Denied Claim. On or before 60 days after receiving a notice from the Administrator that a claim has been denied, in whole or in part, a Claimant (or the Claimant’s duly authorized representative) may file with the Administrator a written request for a review of the denial of the claim. The Claimant (or the Claimant’s duly authorized representative):

(a)    may, upon request and free of charge, have reasonable access to, and copies of all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claim for benefits; and

(b)    may submit written comments or other documents.

12.4Decision on Review. The Administrator shall render its decision on review promptly, and no later than 60 days after the Administrator receives the Claimant’s written request for a review of the denial of the claim. If the Administrator determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial 60 day period. In no event shall such extension exceed a period of 60 days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Administrator expects to render the determination. In rendering its decision, the Administrator shall take into account all comments, documents, records and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial determination. The decision must be written in a manner calculated to be understood by the Claimant, and it must contain:

(a)    specific reasons for the decision;

(b)    specific reference(s) to the pertinent Plan provisions upon which the decision was based;

(c)    a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of all documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant’s claim for benefits; and

(d)    a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a).

12.5Legal Action. A Claimant’s compliance with the foregoing provisions of this Article is a mandatory prerequisite to a Claimant’s right to commence any legal action with respect to any claim for benefits under this Plan.

ARTICLE XIII. TRUST

13.1Establishment of the Trust. In order to provide assets from which to fulfill its obligations to the Participants and their Beneficiaries under the Plan, the Company may establish a trust by a trust agreement with a third party, the trustee, to which the Employer may, in its discretion, contribute cash or other property, including securities issued by the Company, to provide for the benefit payments under the Plan (the “Trust”).

13.2Interrelationship of the Plan and the Trust. The provisions of the Plan shall govern the rights of a Participant to receive distributions pursuant to the Plan. The provisions of the Trust shall govern the rights of the Employer, Participants and the creditors of the Employer to the assets transferred to the Trust. The Employer shall at all times remain liable to carry out its obligations under the Plan.

13.3Distributions From the Trust. The Employer’s obligations under the Plan may be satisfied with Trust assets distributed pursuant to the terms of the Trust, and any such distribution shall reduce the Employer’s obligations under this Plan.

ARTICLE XIV. MISCELLANEOUS

14.1Status of Plan. The Plan is intended to be a plan that is not qualified within the meaning of Code Section 401(a) and that “is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees” within the meaning of ERISA Sections 201(2), 301(a)(3) and 401(a)(1). The Plan shall be administered and interpreted (a) to the extent possible in a manner consistent with the intent described in the preceding sentence, and (b) in accordance with Code Section 409A and related Treasury guidance and regulations.

14.2Unsecured General Creditor. Participants and their Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interests or claims in any property or assets of an Employer. For purposes of the payment of benefits under this Plan, any and all of an Employer’s assets shall be, and remain, the general, unpledged unrestricted assets of the Employer. An Employer’s obligation under the Plan shall be merely that of an unfunded and unsecured promise to pay money in the future.

14.3Employer’s Liability. An Employer’s liability for the payment of benefits shall be defined only by the Plan.

14.4Nonassignability. Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable. No part of the amounts payable shall, prior to actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency. Notwithstanding the foregoing to the contrary, benefits under this Plan may be pad in accordance with a qualified domestic relations order (QDRO) as defined in Code Section 414(p) pursuant to procedures established by the Administrator. Benefits may be paid to an alternate payee (as that term is defined in Code Section 414(p)) pursuant to a QDRO before payment to the Participant would be permitted.

14.5Not a Contract of Employment. The terms and conditions of this Plan shall not be deemed to constitute a contract of employment between the Employer and the Participant. Such employment is hereby acknowledged to be an “at will” employment relationship that can be terminated at any time for any reason, or no reason, with or without cause, and with or without notice, unless expressly provided in a written employment agreement. Nothing in this Plan shall be deemed to give a Participant the right to be retained in the service of the Employer, either as an Employee or a Director, or to interfere with the right of the Employer to discipline or discharge the Participant at any time.

14.6Furnishing Information. A Participant or his or her Beneficiary will cooperate with the Administrator by furnishing any and all information requested by the Administrator and take such other actions as may be requested in order to facilitate the administration of the Plan and the payments of benefits hereunder, including but not limited to taking such physical examinations as the Administrator may deem necessary.

14.7Terms. Whenever any words are used herein in the masculine, they shall be construed as though they were in the feminine in all cases where they would so apply; and whenever any words are used herein in the singular or in the plural, they shall be construed as though they were used in the plural or the singular, as the case may be, in all cases where they would so apply.

14.8Captions. The captions of the articles, sections and paragraphs of this Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions.

14.9Governing Law. Subject to ERISA, the provisions of this Plan shall be construed and interpreted according to the internal laws of the State of Oregon without regard to its conflicts of laws principles.

14.10Notice. Any notice or filing required or permitted to be given to the Administrator or the Claims Committee under this Plan shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address below:

Columbia Sportswear Company

Administrator: 401(k) Excess Retirement Plan

Attn: Benefits Department

14375 NW Science Park Dr.

Portland, OR 97229

Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.

Any notice or filing required or permitted to be given to a Participant under this Plan shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Participant.

14.11Successors. The provisions of this Plan shall bind and inure to the benefit of the Participant’s Employer and its successors and assigns and the Participant and the Participant’s designated Beneficiaries.

14.12Spouse’s Interest. The interest in the benefits hereunder of a spouse of a Participant who has predeceased the Participant shall automatically pass to the Participant and shall not be transferable by such spouse in any manner, including but not limited to such spouse’s will, nor shall such interest pass under the laws of intestate succession.

14.13Validity. In case any provision of this Plan shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal or invalid provision had never been inserted herein.

14.14Incompetent. If the Administrator determines in its discretion that a benefit under this Plan is to be paid to a minor, a person declared incompetent or to a person incapable of handling the disposition of that person’s property, the Administrator may direct payment of such benefit to the guardian, legal representative or person having the care and custody of such minor, incompetent or incapable person. The Administrator may require proof of minority, incompetence, incapacity or guardianship, as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit shall be a payment for the account of the Participant and the Participant’s Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Plan for such payment amount.

14.15Distribution in the Event of Income Inclusion Under Code Section 409A. If any portion of a Participant’s Account Balance under this Plan is required to be included in income by the Participant prior to receipt due to a failure of this Plan to comply with the requirements of Code Section 409A and related Treasury regulations, the Administrator may determine that such Participant shall receive a distribution from the Plan in an amount equal to the lesser of (i) the portion of his or her Account Balance required to be included in income as a result of the failure of the Plan to comply with the requirements of Code Section 409A and related Treasury regulations, or (ii) the unpaid vested Account Balance.

49351045.1

23

Document

Exhibit 21.1

Columbia Sportswear Company

List of Subsidiaries

As of December 31, 2021

Name	Jurisdiction of Incorporation
Columbia Brands Holding Company	Oregon
Columbia Brands International Sàrl	Switzerland
Columbia Brands USA, LLC	Oregon
Columbia Brands Canada Limited	Canada
Columbia Sportswear Austria GmbH	Austria
Columbia Sportswear Canada ULC	Canada
Columbia Sportswear Canada GP Limited	Canada
Columbia Sportswear Canada LP	Canada
Columbia Sportswear Commercial (Shanghai) Co., Ltd.	China
Columbia Sportswear Company (Dongguan) Limited	China
Columbia Sportswear Company (Hong Kong) Limited	Hong Kong
Columbia Sportswear Company Limited	United Kingdom
Columbia Sportswear Czech s.r.o.	Czech Republic
Columbia Sportswear Denmark ApS	Denmark
Columbia Sportswear Distribution S.A.S.	France
Columbia Sportswear Europe S.A.S.	France
Columbia Sportswear Finland Oy	Finland
Columbia Sportswear GmbH	Germany
Columbia Sportswear India Sourcing Private Limited	India
Columbia Sportswear Information Consultant (Zhuhai) Co., Ltd.	China
Columbia Sportswear International Sàrl	Switzerland
Columbia Sportswear Italy S.r.l.	Italy
Columbia Sportswear Japan, Inc.	Japan
Columbia Sportswear Korea	Korea
Columbia Sportswear LO Holdings LLC	Oregon
Columbia Sportswear Luxembourg Holdings Sàrl	Luxembourg
Columbia Sportswear Netherlands B.V.	The Netherlands
Columbia Sportswear North America, Inc.	Oregon
Columbia Sportswear Norway AS	Norway
Columbia Sportswear Poland Sp.z.o.o	Poland
Columbia Sportswear Spain S.L.U.	Spain
Columbia Sportswear Sweden AB	Sweden
CSMM Hong Kong Limited	Hong Kong
GTS, Inc.	Oregon
Montrail Corporation	Oregon
Mountain Hardwear, Inc.	Utah
OutDry Technologies Corporation	Oregon
Pacific Trail Corporation	Oregon
prAna Living, LLC	Oregon
Sorel Corporation	Delaware
Columbia Sportswear Vietnam Limited Liability Company	Vietnam

Document

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement Nos. 333-53785, 333-186958, 333-238935, 333-160702, 333-117986, 333-108342, 333-86224, and 333-80387 on Form S-8 of our reports dated February 24, 2022, relating to the financial statements of Columbia Sportswear Company and the effectiveness of Columbia Sportswear Company’s internal control over financial reporting appearing in this Annual Report on Form 10-K of Columbia Sportswear Company for the year ended December 31, 2021.

/s/ DELOITTE & TOUCHE LLP

Portland, Oregon

February 24, 2022

Document

EXHIBIT 31.1

CERTIFICATION

I, Timothy P. Boyle, certify that:

1.I have reviewed this annual report on Form 10-K 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: February 24, 2022

/s/ TIMOTHY P. BOYLE
Timothy P. Boyle
Chairman, President and Chief Executive Officer
(Principal Executive Officer)

Document

EXHIBIT 31.2

CERTIFICATION

I, Jim A. Swanson, certify that:

1.I have reviewed this annual report on Form 10-K 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: February 24, 2022

/s/ JIM A. SWANSON
Jim A. Swanson
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)

Document

EXHIBIT 32.1

SECTION 1350 CERTIFICATION

In connection with the Annual Report of Columbia Sportswear Company (the “Company") on Form 10-K for the period ended December 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the "Form 10-K"), 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-K fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 as of, and for, the periods presented in the Form 10-K; and

(2)    The information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of the operation of the Company.

Dated: February 24, 2022

/s/ TIMOTHY P. BOYLE
Timothy P. Boyle
Chairman, President and Chief Executive Officer
(Principal Executive Officer)

Document

EXHIBIT 32.2

SECTION 1350 CERTIFICATION

In connection with the Annual Report of Columbia Sportswear Company (the “Company") on Form 10-K for the period ended December 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the "Form 10-K"), 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-K fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 as of, and for, the periods presented in the Form 10-K; and

(2)    The information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of the operation of the Company.

Dated: February 24, 2022

/s/ JIM A. SWANSON
Jim A. Swanson
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)