FORM 10-Q | ||||||||
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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: | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock | COLM | The NASDAQ Global Select Market | ||||||
exchange on which registered | ||||||||||||||||||||||||||||||||
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 shorter 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 | ☐ | Smaller | ||||||||||||||||||||||||||||||
☐ | ||||||||||||||||||||||||||||||||
Emerging growth company | ☐ | |||||||||||||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | |||||||||||||||||||||||||||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Yes | ☐ | No | ☒ | ||||||||||||||||||||||||||||
The number of shares outstanding of the registrant's common stock on October 21, 2022 was 62,113,626. | ||||||||||||||||||||||||||||||||
TABLE OF CONTENTS |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. | ||||||||
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS |
PART I — FINANCIAL INFORMATION |
ITEM 1. | FINANCIAL STATEMENTS |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
(in thousands) | September 30, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 159,221 | $ | 763,404 | $ | 599,479 | ||||||||||||||
Short-term investments | 972 | 131,145 | 1,132 | |||||||||||||||||
Accounts receivable, net of allowance of $5,822, $8,893 and $10,847, respectively | 600,457 | 487,803 | 500,451 | |||||||||||||||||
Inventories, net | 1,056,905 | 645,379 | 720,865 | |||||||||||||||||
Prepaid expenses and other current assets | 142,055 | 86,306 | 98,146 | |||||||||||||||||
Total current assets | 1,959,610 | 2,114,037 | 1,920,073 | |||||||||||||||||
Property, plant and equipment, net of accumulated depreciation of $608,522, $602,660 and $591,795, respectively | 287,338 | 291,088 | 293,725 | |||||||||||||||||
Operating lease right-of-use assets | 328,893 | 330,928 | 344,876 | |||||||||||||||||
Intangible assets, net | 100,672 | 101,908 | 102,321 | |||||||||||||||||
Goodwill | 68,594 | 68,594 | 68,594 | |||||||||||||||||
Deferred income taxes | 76,899 | 92,121 | 92,493 | |||||||||||||||||
Other non-current assets | 68,146 | 68,452 | 67,277 | |||||||||||||||||
Total assets | $ | 2,890,152 | $ | 3,067,128 | $ | 2,889,359 | ||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Short-term borrowings | $ | 4,441 | $ | — | $ | — | ||||||||||||||
Accounts payable | 336,782 | 283,349 | 241,119 | |||||||||||||||||
Accrued liabilities | 279,226 | 316,485 | 273,590 | |||||||||||||||||
Operating lease liabilities | 65,866 | 67,429 | 67,055 | |||||||||||||||||
Income taxes payable | 10,341 | 13,127 | 8,955 | |||||||||||||||||
Total current liabilities | 696,656 | 680,390 | 590,719 | |||||||||||||||||
Non-current operating lease liabilities | 314,565 | 317,666 | 330,765 | |||||||||||||||||
Income taxes payable | 33,215 | 44,541 | 49,392 | |||||||||||||||||
Deferred income taxes | — | — | 1 | |||||||||||||||||
Other long-term liabilities | 30,913 | 35,279 | 38,165 | |||||||||||||||||
Total liabilities | 1,075,349 | 1,077,876 | 1,009,042 | |||||||||||||||||
Commitments and contingencies (Note 5) | ||||||||||||||||||||
Shareholders' Equity: | ||||||||||||||||||||
Preferred stock; 10,000 shares authorized; none issued and outstanding | — | — | — | |||||||||||||||||
Common stock (no par value); 250,000 shares authorized; 62,105, 65,164 and 65,501 issued and outstanding, respectively | 5,803 | — | — | |||||||||||||||||
Retained earnings | 1,846,570 | 1,993,628 | 1,883,343 | |||||||||||||||||
Accumulated other comprehensive income (loss) | (37,570) | (4,376) | (3,026) | |||||||||||||||||
Total shareholders' equity | 1,814,803 | 1,989,252 | 1,880,317 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,890,152 | $ | 3,067,128 | $ | 2,889,359 |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
(in thousands) | September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 599,479 | $ | 790,725 | $ | 313,429 | ||||||||||||||
Short-term investments | 1,132 | 1,224 | 1,095 | |||||||||||||||||
Accounts receivable, net of allowance of $10,847, $21,810, and $29,760, respectively | 500,451 | 452,945 | 479,376 | |||||||||||||||||
Inventories, net | 720,865 | 556,530 | 771,724 | |||||||||||||||||
Prepaid expenses and other current assets | 98,146 | 54,197 | 82,175 | |||||||||||||||||
Total current assets | 1,920,073 | 1,855,621 | 1,647,799 | |||||||||||||||||
Property, plant and equipment, at cost, net of accumulated depreciation of $591,795, $574,247, and $550,097, respectively | 293,725 | 309,792 | 322,167 | |||||||||||||||||
Operating lease right-of-use assets | 344,876 | 339,244 | 351,277 | |||||||||||||||||
Intangible assets, net | 102,321 | 103,558 | 121,471 | |||||||||||||||||
Goodwill | 68,594 | 68,594 | 68,594 | |||||||||||||||||
Deferred income taxes | 92,493 | 96,126 | 77,055 | |||||||||||||||||
Other non-current assets | 67,277 | 63,636 | 63,951 | |||||||||||||||||
Total assets | $ | 2,889,359 | $ | 2,836,571 | $ | 2,652,314 | ||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable | 241,119 | 206,697 | 164,332 | |||||||||||||||||
Accrued liabilities | 273,590 | 257,278 | 257,040 | |||||||||||||||||
Operating lease liabilities | 67,055 | 65,466 | 73,409 | |||||||||||||||||
Income taxes payable | 8,955 | 23,181 | 4,813 | |||||||||||||||||
Total current liabilities | 590,719 | 552,622 | 499,594 | |||||||||||||||||
Non-current operating lease liabilities | 330,765 | 353,181 | 337,108 | |||||||||||||||||
Income taxes payable | 49,392 | 49,922 | 49,195 | |||||||||||||||||
Deferred income taxes | 1 | 5,205 | 7,149 | |||||||||||||||||
Other long-term liabilities | 38,165 | 42,870 | 36,452 | |||||||||||||||||
Total liabilities | 1,009,042 | 1,003,800 | 929,498 | |||||||||||||||||
Commitments and contingencies (Note 6) | 0 | 0 | 0 | |||||||||||||||||
Shareholders' Equity: | ||||||||||||||||||||
Preferred stock; 10,000 shares authorized; none issued and outstanding | — | — | — | |||||||||||||||||
Common stock (no par value); 250,000 shares authorized; 65,501, 66,252, and 66,210, issued and outstanding, respectively | — | 20,165 | 13,142 | |||||||||||||||||
Retained earnings | 1,883,343 | 1,811,800 | 1,716,044 | |||||||||||||||||
Accumulated other comprehensive income (loss) | (3,026) | 806 | (6,370) | |||||||||||||||||
Total shareholders' equity | 1,880,317 | 1,832,771 | 1,722,816 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,889,359 | $ | 2,836,571 | $ | 2,652,314 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||
Net sales | $ | 955,059 | $ | 804,706 | $ | 2,294,632 | $ | 1,996,682 | ||||||||||||||||||||||||
Cost of sales | 496,564 | 396,346 | 1,173,530 | 974,403 | ||||||||||||||||||||||||||||
Gross profit | 458,495 | 408,360 | 1,121,102 | 1,022,279 | ||||||||||||||||||||||||||||
Selling, general and administrative expenses | 318,957 | 280,121 | 899,301 | 796,276 | ||||||||||||||||||||||||||||
Net licensing income | 5,723 | 5,222 | 15,899 | 12,933 | ||||||||||||||||||||||||||||
Operating income | 145,261 | 133,461 | 237,700 | 238,936 | ||||||||||||||||||||||||||||
Interest income, net | 765 | 196 | 1,659 | 1,072 | ||||||||||||||||||||||||||||
Other non-operating income (expense), net | (269) | 201 | (1,660) | (397) | ||||||||||||||||||||||||||||
Income before income tax | 145,757 | 133,858 | 237,699 | 239,611 | ||||||||||||||||||||||||||||
Income tax expense | (34,007) | (33,295) | (51,949) | (42,464) | ||||||||||||||||||||||||||||
Net income | $ | 111,750 | $ | 100,563 | $ | 185,750 | $ | 197,147 | ||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 1.80 | $ | 1.53 | $ | 2.95 | $ | 2.98 | ||||||||||||||||||||||||
Diluted | $ | 1.80 | $ | 1.52 | $ | 2.94 | $ | 2.96 | ||||||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 62,098 | 65,862 | 62,967 | 66,182 | ||||||||||||||||||||||||||||
Diluted | 62,210 | 66,266 | 63,178 | 66,673 |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||
Net income | $ | 111,750 | $ | 100,563 | $ | 185,750 | $ | 197,147 | ||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Unrealized gains on derivative transactions (net of tax effects of $(4,856), $(3,602), $(9,944) and $(5,787), respectively) | 14,221 | 10,552 | 27,938 | 15,564 | ||||||||||||||||||||||||||||
Foreign currency translation adjustments (net of tax effects of $126, $66, $1,123 and $215, respectively) | (30,058) | (11,422) | (61,132) | (19,396) | ||||||||||||||||||||||||||||
Other comprehensive income (loss) | (15,837) | (870) | (33,194) | (3,832) | ||||||||||||||||||||||||||||
Comprehensive income | $ | 95,913 | $ | 99,693 | $ | 152,556 | $ | 193,315 |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
Nine Months Ended September 30, | ||||||||||||||||||||
(in thousands) | 2022 | 2021 | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 185,750 | $ | 197,147 | ||||||||||||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||||||||||
Depreciation, amortization, and non-cash lease expense | 86,569 | 84,509 | ||||||||||||||||||
Provision for uncollectible accounts receivable | (1,745) | (9,088) | ||||||||||||||||||
Loss on disposal or impairment of investments, property, plant and equipment, and right-of-use assets | 2,455 | 366 | ||||||||||||||||||
Deferred income taxes | 1,712 | (8,731) | ||||||||||||||||||
Stock-based compensation | 16,071 | 14,487 | ||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable | (129,251) | (44,500) | ||||||||||||||||||
Inventories, net | (443,194) | (173,761) | ||||||||||||||||||
Prepaid expenses and other current assets | (27,535) | (40,957) | ||||||||||||||||||
Other assets | 2,260 | 148 | ||||||||||||||||||
Accounts payable | 63,868 | 22,014 | ||||||||||||||||||
Accrued liabilities | (18,409) | 24,813 | ||||||||||||||||||
Income taxes payable | (14,299) | (14,621) | ||||||||||||||||||
Operating lease assets and liabilities | (49,159) | (68,823) | ||||||||||||||||||
Other liabilities | (3,182) | 1,359 | ||||||||||||||||||
Net cash used in operating activities | (328,089) | (15,638) | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchases of short-term investments | (44,876) | — | ||||||||||||||||||
Sales and maturities of short-term investments | 175,827 | 1,184 | ||||||||||||||||||
Capital expenditures | (42,489) | (20,413) | ||||||||||||||||||
Net cash provided by (used in) investing activities | 88,462 | (19,229) | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from credit facilities | 12,660 | 29,508 | ||||||||||||||||||
Repayments on credit facilities | (8,133) | (29,313) | ||||||||||||||||||
Payment of line of credit issuance fees | (604) | — | ||||||||||||||||||
Proceeds from issuance of common stock related to stock-based compensation | 4,598 | 24,329 | ||||||||||||||||||
Tax payments related to stock-based compensation | (4,178) | (5,715) | ||||||||||||||||||
Repurchase of common stock | (287,443) | (118,580) | ||||||||||||||||||
Cash dividends paid | (56,556) | (51,662) | ||||||||||||||||||
Net cash used in financing activities | (339,656) | (151,433) | ||||||||||||||||||
Net effect of exchange rate changes on cash | (24,900) | (4,946) | ||||||||||||||||||
Net decrease in cash and cash equivalents | (604,183) | (191,246) | ||||||||||||||||||
Cash and cash equivalents, beginning of period | 763,404 | 790,725 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 159,221 | $ | 599,479 | ||||||||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||||||
Cash paid during the year for income taxes | $ | 59,584 | $ | 87,709 | ||||||||||||||||
Supplemental disclosures of non-cash investing and financing activities: | ||||||||||||||||||||
Property, plant and equipment acquired through increase in liabilities | $ | 7,502 | $ | 8,277 | ||||||||||||||||
Repurchases of common stock not settled | $ | — | $ | 8,628 |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) |
(in thousands, except per share amounts) | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | |||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | 62,091 | $ | — | $ | 1,753,450 | $ | (21,733) | $ | 1,731,717 | |||||||||||||||||||||||||||||
Net income | — | — | 111,750 | — | 111,750 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||
Unrealized gains on derivative transactions, net | — | — | — | 14,221 | 14,221 | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net | — | — | — | (30,058) | (30,058) | |||||||||||||||||||||||||||||||||
Cash dividends ($0.30 per share) | — | — | (18,630) | — | (18,630) | |||||||||||||||||||||||||||||||||
Issuance of common stock related to stock-based compensation, net | 14 | 368 | — | — | 368 | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 5,435 | — | — | 5,435 | |||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | 62,105 | $ | 5,803 | $ | 1,846,570 | $ | (37,570) | $ | 1,814,803 |
(in thousands, except per share amounts) | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | |||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | 66,148 | $ | — | $ | 1,863,813 | $ | (2,156) | $ | 1,861,657 | |||||||||||||||||||||||||||||
Net income | — | — | 100,563 | — | 100,563 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||
Unrealized gains on derivative transactions, net | — | — | — | 10,552 | 10,552 | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net | — | — | — | (11,422) | (11,422) | |||||||||||||||||||||||||||||||||
Cash dividends ($0.26 per share) | — | — | (17,122) | — | (17,122) | |||||||||||||||||||||||||||||||||
Issuance of common stock related to stock-based compensation, net | 79 | 3,767 | — | — | 3,767 | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 4,664 | — | — | 4,664 | |||||||||||||||||||||||||||||||||
Repurchase of common stock | (726) | (8,431) | (63,911) | — | (72,342) | |||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | 65,501 | $ | — | $ | 1,883,343 | $ | (3,026) | $ | 1,880,317 |
(in thousands, except per share amounts) | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | |||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | 65,164 | $ | — | $ | 1,993,628 | $ | (4,376) | $ | 1,989,252 | |||||||||||||||||||||||||||||
Net income | — | — | 185,750 | — | 185,750 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||
Unrealized gains on derivative transactions, net | — | — | — | 27,938 | 27,938 | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net | — | — | — | (61,132) | (61,132) | |||||||||||||||||||||||||||||||||
Cash dividends ($0.90 per share) | — | — | (56,556) | — | (56,556) | |||||||||||||||||||||||||||||||||
Issuance of common stock related to stock-based compensation, net | 176 | 420 | — | — | 420 | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 16,071 | — | — | 16,071 | |||||||||||||||||||||||||||||||||
Repurchase of common stock | (3,235) | (10,688) | (276,252) | — | (286,940) | |||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | 62,105 | $ | 5,803 | $ | 1,846,570 | $ | (37,570) | $ | 1,814,803 |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
Net sales | $ | 804,706 | $ | 701,092 | $ | 1,996,682 | $ | 1,585,931 | ||||||||||||||||||||||||
Cost of sales | 396,346 | 358,184 | 974,403 | 825,079 | ||||||||||||||||||||||||||||
Gross profit | 408,360 | 342,908 | 1,022,279 | 760,852 | ||||||||||||||||||||||||||||
Selling, general and administrative expenses | 280,121 | 261,192 | 796,276 | 755,664 | ||||||||||||||||||||||||||||
Net licensing income | 5,222 | 3,927 | 12,933 | 8,168 | ||||||||||||||||||||||||||||
Operating income | 133,461 | 85,643 | 238,936 | 13,356 | ||||||||||||||||||||||||||||
Interest income (expense), net | 196 | (280) | 1,072 | 728 | ||||||||||||||||||||||||||||
Other non-operating income (expense), net | 201 | (465) | (397) | 2,208 | ||||||||||||||||||||||||||||
Income before income tax | 133,858 | 84,898 | 239,611 | 16,292 | ||||||||||||||||||||||||||||
Income tax expense | (33,295) | (22,147) | (42,464) | (4,035) | ||||||||||||||||||||||||||||
Net income | $ | 100,563 | $ | 62,751 | $ | 197,147 | $ | 12,257 | ||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 1.53 | $ | 0.95 | $ | 2.98 | $ | 0.18 | ||||||||||||||||||||||||
Diluted | $ | 1.52 | $ | 0.94 | $ | 2.96 | $ | 0.18 | ||||||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 65,862 | 66,179 | 66,182 | 66,427 | ||||||||||||||||||||||||||||
Diluted | 66,266 | 66,537 | 66,673 | 66,807 |
(in thousands, except per share amounts) | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | |||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | 66,252 | $ | 20,165 | $ | 1,811,800 | $ | 806 | $ | 1,832,771 | |||||||||||||||||||||||||||||
Net income | — | — | 197,147 | — | 197,147 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||
Unrealized gains on derivative transactions, net | — | — | — | 15,564 | 15,564 | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net | — | — | — | (19,396) | (19,396) | |||||||||||||||||||||||||||||||||
Cash dividends ($0.78 per share) | — | — | (51,662) | — | (51,662) | |||||||||||||||||||||||||||||||||
Issuance of common stock related to stock-based compensation, net | 503 | 18,614 | — | — | 18,614 | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 14,487 | — | — | 14,487 | |||||||||||||||||||||||||||||||||
Repurchase of common stock | (1,254) | (53,266) | (73,942) | — | (127,208) | |||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | 65,501 | $ | — | $ | 1,883,343 | $ | (3,026) | $ | 1,880,317 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
Net income | $ | 100,563 | $ | 62,751 | $ | 197,147 | $ | 12,257 | ||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Unrealized gains (losses) on derivative transactions (net of tax effects of $(3,602), $3,995, $(5,787) and $1,371, respectively) | 10,552 | (11,685) | 15,564 | (5,022) | ||||||||||||||||||||||||||||
Foreign currency translation adjustments (net of tax effects of $66, $(290), $215 and $(253), respectively) | (11,422) | 11,175 | (19,396) | 3,077 | ||||||||||||||||||||||||||||
Other comprehensive loss | (870) | (510) | (3,832) | (1,945) | ||||||||||||||||||||||||||||
Comprehensive income | $ | 99,693 | $ | 62,241 | $ | 193,315 | $ | 10,312 |
Nine Months Ended September 30, | ||||||||||||||||||||
(in thousands) | 2021 | 2020 | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 197,147 | $ | 12,257 | ||||||||||||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||||||||||
Depreciation, amortization, and non-cash lease expense | 84,509 | 102,283 | ||||||||||||||||||
Provision for uncollectible accounts receivable | (9,088) | 24,684 | ||||||||||||||||||
Loss on disposal or impairment of property, plant and equipment and right-of-use assets | 366 | 8,981 | ||||||||||||||||||
Deferred income taxes | (8,731) | 4,306 | ||||||||||||||||||
Stock-based compensation | 14,487 | 12,802 | ||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable | (44,500) | (17,130) | ||||||||||||||||||
Inventories, net | (173,761) | (160,090) | ||||||||||||||||||
Prepaid expenses and other current assets | (40,957) | 9,098 | ||||||||||||||||||
Other assets | 148 | (20,786) | ||||||||||||||||||
Accounts payable | 22,014 | (89,790) | ||||||||||||||||||
Accrued liabilities | 24,813 | (41,182) | ||||||||||||||||||
Income taxes payable | (14,621) | (10,011) | ||||||||||||||||||
Operating lease assets and liabilities | (68,823) | (41,459) | ||||||||||||||||||
Other liabilities | 1,359 | 8,077 | ||||||||||||||||||
Net cash used in operating activities | (15,638) | (197,960) | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchases of short-term investments | — | (35,044) | ||||||||||||||||||
Sales and maturities of short-term investments | 1,184 | 36,630 | ||||||||||||||||||
Capital expenditures | (20,413) | (25,164) | ||||||||||||||||||
Net cash used in investing activities | (19,229) | (23,578) | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from credit facilities | 29,508 | 387,992 | ||||||||||||||||||
Repayments on credit facilities | (29,313) | (388,465) | ||||||||||||||||||
Payment of line of credit issuance fees | — | (2,096) | ||||||||||||||||||
Proceeds from issuance of common stock related to stock-based compensation | 24,329 | 4,793 | ||||||||||||||||||
Tax payments related to stock-based compensation | (5,715) | (4,454) | ||||||||||||||||||
Repurchase of common stock | (118,580) | (132,889) | ||||||||||||||||||
Cash dividends paid | (51,662) | (17,195) | ||||||||||||||||||
Net cash used in financing activities | (151,433) | (152,314) | ||||||||||||||||||
Net effect of exchange rate changes on cash | (4,946) | 1,272 | ||||||||||||||||||
Net decrease in cash and cash equivalents | (191,246) | (372,580) | ||||||||||||||||||
Cash and cash equivalents, beginning of period | 790,725 | 686,009 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 599,479 | $ | 313,429 | ||||||||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||||||
Cash paid during the year for income taxes | $ | 87,709 | $ | 18,385 | ||||||||||||||||
Supplemental disclosures of non-cash investing and financing activities: | ||||||||||||||||||||
Property, plant and equipment acquired through increase in liabilities | $ | 8,277 | $ | 4,774 | ||||||||||||||||
Repurchases of common stock not settled | $ | 8,628 | $ | — |
Three Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||
Shares Outstanding | Amount | |||||||||||||||||||||||||||||||
BALANCE, JUNE 30, 2021 | 66,148 | $ | — | $ | 1,863,813 | $ | (2,156) | $ | 1,861,657 | |||||||||||||||||||||||
Net income | — | — | 100,563 | — | 100,563 | |||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Unrealized gains on derivative transactions, net | — | — | — | 10,552 | 10,552 | |||||||||||||||||||||||||||
Foreign currency translation adjustment, net | — | — | — | (11,422) | (11,422) | |||||||||||||||||||||||||||
Cash dividends ($0.26 per share) | — | — | (17,122) | — | (17,122) | |||||||||||||||||||||||||||
Issuance of common stock related to stock-based compensation, net | 79 | 3,767 | — | — | 3,767 | |||||||||||||||||||||||||||
Stock-based compensation expense | — | 4,664 | — | — | 4,664 | |||||||||||||||||||||||||||
Repurchase of common stock | (726) | (8,431) | (63,911) | — | (72,342) | |||||||||||||||||||||||||||
BALANCE, SEPTEMBER 30, 2021 | 65,501 | $ | — | $ | 1,883,343 | $ | (3,026) | $ | 1,880,317 | |||||||||||||||||||||||
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||
Shares Outstanding | Amount | |||||||||||||||||||||||||||||||
BALANCE, JUNE 30, 2020 | 66,148 | $ | 5,396 | $ | 1,653,293 | $ | (5,860) | $ | 1,652,829 | |||||||||||||||||||||||
Net income | — | — | 62,751 | — | 62,751 | |||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Unrealized losses on derivative transactions, net | — | — | — | (11,685) | (11,685) | |||||||||||||||||||||||||||
Foreign currency translation adjustment, net | — | — | — | 11,175 | 11,175 | |||||||||||||||||||||||||||
Issuance of common stock related to stock-based compensation, net | 62 | 2,656 | — | — | 2,656 | |||||||||||||||||||||||||||
Stock-based compensation expense | — | 5,090 | — | — | 5,090 | |||||||||||||||||||||||||||
BALANCE, SEPTEMBER 30, 2020 | 66,210 | $ | 13,142 | $ | 1,716,044 | $ | (6,370) | $ | 1,722,816 |
Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||
Shares Outstanding | Amount | |||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2020 | 66,252 | $ | 20,165 | $ | 1,811,800 | $ | 806 | $ | 1,832,771 | |||||||||||||||||||||||
Net income | — | — | 197,147 | — | 197,147 | |||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Unrealized gains on derivative transactions, net | — | — | — | 15,564 | 15,564 | |||||||||||||||||||||||||||
Foreign currency translation adjustment, net | — | — | — | (19,396) | (19,396) | |||||||||||||||||||||||||||
Cash dividends ($0.78 per share) | — | — | (51,662) | — | (51,662) | |||||||||||||||||||||||||||
Issuance of common stock related to stock-based compensation, net | 503 | 18,614 | — | — | 18,614 | |||||||||||||||||||||||||||
Stock-based compensation expense | 14,487 | — | — | 14,487 | ||||||||||||||||||||||||||||
Repurchase of common stock | (1,254) | (53,266) | (73,942) | — | (127,208) | |||||||||||||||||||||||||||
BALANCE, SEPTEMBER 30, 2021 | 65,501 | $ | — | $ | 1,883,343 | $ | (3,026) | $ | 1,880,317 | |||||||||||||||||||||||
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||
Shares Outstanding | Amount | |||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2019 | 67,561 | $ | 4,937 | $ | 1,848,935 | $ | (4,425) | $ | 1,849,447 | |||||||||||||||||||||||
Net income | — | — | 12,257 | — | 12,257 | |||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Unrealized losses on derivative transactions, net | — | — | — | (5,022) | (5,022) | |||||||||||||||||||||||||||
Foreign currency translation adjustment, net | — | — | — | 3,077 | 3,077 | |||||||||||||||||||||||||||
Cash dividends ($0.26 per share) | — | — | (17,195) | — | (17,195) | |||||||||||||||||||||||||||
Issuance of common stock related to stock-based compensation, net | 206 | 339 | — | — | 339 | |||||||||||||||||||||||||||
Stock-based compensation expense | — | 12,802 | — | — | 12,802 | |||||||||||||||||||||||||||
Repurchase of common stock | (1,557) | (4,936) | (127,953) | — | (132,889) | |||||||||||||||||||||||||||
BALANCE, SEPTEMBER 30, 2020 | 66,210 | $ | 13,142 | $ | 1,716,044 | $ | (6,370) | $ | 1,722,816 |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
NOTE | PAGE | |||||||||||||
Note 1 | Basis of Presentation and Organization | |||||||||||||
Note 2 | Revenues | |||||||||||||
Note 3 | Intangible Assets, Net and Goodwill | |||||||||||||
Note 4 | Short-Term Borrowings and Credit Lines | |||||||||||||
Note | Commitments and Contingencies | |||||||||||||
Note 6 | Shareholders' Equity | |||||||||||||
Note 7 | ||||||||||||||
Note 8 | ||||||||||||||
Earnings Per Share | ||||||||||||||
Note | Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Note | Segment Information | |||||||||||||
Note | Financial Instruments and Risk Management | |||||||||||||
Note | Fair Value Measures |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
NOTE 1 — BASIS OF PRESENTATION AND ORGANIZATION |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
NOTE 2 — REVENUES |
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||
(in thousands) | U.S. | LAAP | EMEA | Canada | Total | |||||||||||||||||||||||||||
Product category net sales | ||||||||||||||||||||||||||||||||
Apparel, Accessories and Equipment | $ | 473,066 | $ | 84,769 | $ | 112,817 | $ | 55,690 | $ | 726,342 | ||||||||||||||||||||||
Footwear | 134,008 | 30,559 | 40,713 | 23,437 | 228,717 | |||||||||||||||||||||||||||
Total | $ | 607,074 | $ | 115,328 | $ | 153,530 | $ | 79,127 | $ | 955,059 | ||||||||||||||||||||||
Channel net sales | ||||||||||||||||||||||||||||||||
Wholesale | $ | 368,040 | $ | 76,829 | $ | 139,027 | $ | 61,133 | $ | 645,029 | ||||||||||||||||||||||
Direct-to-consumer | 239,034 | 38,499 | 14,503 | 17,994 | 310,030 | |||||||||||||||||||||||||||
Total | $ | 607,074 | $ | 115,328 | $ | 153,530 | $ | 79,127 | $ | 955,059 |
Three Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||
(in thousands) | U.S. | LAAP | EMEA | Canada | Total | |||||||||||||||||||||||||||
Product category net sales | ||||||||||||||||||||||||||||||||
Apparel, Accessories and Equipment | $ | 406,187 | $ | 78,160 | $ | 75,399 | $ | 61,409 | $ | 621,155 | ||||||||||||||||||||||
Footwear | 104,299 | 24,594 | 33,751 | 20,907 | 183,551 | |||||||||||||||||||||||||||
Total | $ | 510,486 | $ | 102,754 | $ | 109,150 | $ | 82,316 | $ | 804,706 | ||||||||||||||||||||||
Channel net sales | ||||||||||||||||||||||||||||||||
Wholesale | $ | 292,357 | $ | 66,070 | $ | 93,899 | $ | 65,810 | $ | 518,136 | ||||||||||||||||||||||
Direct-to-consumer | 218,129 | 36,684 | 15,251 | 16,506 | 286,570 | |||||||||||||||||||||||||||
Total | $ | 510,486 | $ | 102,754 | $ | 109,150 | $ | 82,316 | $ | 804,706 |
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
(in thousands) | U.S. | LAAP | EMEA | Canada | Total | |||||||||||||||||||||||||||
Product category net sales | ||||||||||||||||||||||||||||||||
Apparel, Accessories and Equipment | $ | 332,713 | $ | 70,026 | $ | 66,160 | $ | 41,221 | $ | 510,120 | ||||||||||||||||||||||
Footwear | 112,907 | 20,925 | 32,999 | 24,141 | 190,972 | |||||||||||||||||||||||||||
Total | $ | 445,620 | $ | 90,951 | $ | 99,159 | $ | 65,362 | $ | 701,092 | ||||||||||||||||||||||
Channel net sales | ||||||||||||||||||||||||||||||||
Wholesale | $ | 282,850 | $ | 50,723 | $ | 85,074 | $ | 52,820 | $ | 471,467 | ||||||||||||||||||||||
Direct-to-consumer | 162,770 | 40,228 | 14,085 | 12,542 | 229,625 | |||||||||||||||||||||||||||
Total | $ | 445,620 | $ | 90,951 | $ | 99,159 | $ | 65,362 | $ | 701,092 |
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | U.S. | LAAP | EMEA | Canada | Total | (in thousands) | U.S. | LAAP | EMEA | Canada | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Product category net sales | Product category net sales | Product category net sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Apparel, Accessories and Equipment | Apparel, Accessories and Equipment | $ | 1,040,432 | $ | 212,921 | $ | 186,213 | $ | 103,549 | $ | 1,543,115 | Apparel, Accessories and Equipment | $ | 1,206,886 | $ | 225,073 | $ | 213,628 | $ | 115,016 | $ | 1,760,603 | ||||||||||||||||||||||||||||||||||||||||||
Footwear | Footwear | 257,781 | 79,785 | 82,276 | 33,725 | 453,567 | Footwear | 314,567 | 84,823 | 92,161 | 42,478 | 534,029 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 1,298,213 | $ | 292,706 | $ | 268,489 | $ | 137,274 | $ | 1,996,682 | Total | $ | 1,521,453 | $ | 309,896 | $ | 305,789 | $ | 157,494 | $ | 2,294,632 | ||||||||||||||||||||||||||||||||||||||||||
Channel net sales | Channel net sales | Channel net sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wholesale | Wholesale | $ | 669,425 | $ | 153,689 | $ | 232,215 | $ | 100,523 | $ | 1,155,852 | Wholesale | $ | 817,429 | $ | 165,075 | $ | 261,580 | $ | 109,065 | $ | 1,353,149 | ||||||||||||||||||||||||||||||||||||||||||
Direct-to-consumer | Direct-to-consumer | 628,788 | 139,017 | 36,274 | 36,751 | 840,830 | Direct-to-consumer | 704,024 | 144,821 | 44,209 | 48,429 | 941,483 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 1,298,213 | $ | 292,706 | $ | 268,489 | $ | 137,274 | $ | 1,996,682 | Total | $ | 1,521,453 | $ | 309,896 | $ | 305,789 | $ | 157,494 | $ | 2,294,632 |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||
(in thousands) | U.S. | LAAP | EMEA | Canada | Total | |||||||||||||||||||||||||||
Product category net sales | ||||||||||||||||||||||||||||||||
Apparel, Accessories and Equipment | $ | 1,040,432 | $ | 212,921 | $ | 186,213 | $ | 103,549 | $ | 1,543,115 | ||||||||||||||||||||||
Footwear | 257,781 | 79,785 | 82,276 | 33,725 | 453,567 | |||||||||||||||||||||||||||
Total | $ | 1,298,213 | $ | 292,706 | $ | 268,489 | $ | 137,274 | $ | 1,996,682 | ||||||||||||||||||||||
Channel net sales | ||||||||||||||||||||||||||||||||
Wholesale | $ | 669,425 | $ | 153,689 | $ | 232,215 | $ | 100,523 | $ | 1,155,852 | ||||||||||||||||||||||
Direct-to-consumer | 628,788 | 139,017 | 36,274 | 36,751 | 840,830 | |||||||||||||||||||||||||||
Total | $ | 1,298,213 | $ | 292,706 | $ | 268,489 | $ | 137,274 | $ | 1,996,682 |
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
(in thousands) | U.S. | LAAP | EMEA | Canada | Total | |||||||||||||||||||||||||||
Product category net sales | ||||||||||||||||||||||||||||||||
Apparel, Accessories and Equipment | $ | 793,846 | $ | 193,815 | $ | 145,100 | $ | 73,445 | $ | 1,206,206 | ||||||||||||||||||||||
Footwear | 210,887 | 67,097 | 68,198 | 33,543 | 379,725 | |||||||||||||||||||||||||||
Total | $ | 1,004,733 | $ | 260,912 | $ | 213,298 | $ | 106,988 | $ | 1,585,931 | ||||||||||||||||||||||
Channel net sales | ||||||||||||||||||||||||||||||||
Wholesale | $ | 559,052 | $ | 139,316 | $ | 180,416 | $ | 78,546 | $ | 957,330 | ||||||||||||||||||||||
Direct-to-consumer | 445,681 | 121,596 | 32,882 | 28,442 | 628,601 | |||||||||||||||||||||||||||
Total | $ | 1,004,733 | $ | 260,912 | $ | 213,298 | $ | 106,988 | $ | 1,585,931 |
NOTE 3 — INTANGIBLE ASSETS, NET AND GOODWILL |
(in thousands) | September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||||||
Intangible assets subject to amortization: | ||||||||||||||||||||
Patents and purchased technology | $ | 14,198 | $ | 14,198 | $ | 14,198 | ||||||||||||||
Customer relationships | 23,000 | 23,000 | 23,000 | |||||||||||||||||
Gross carrying amount | 37,198 | 37,198 | 37,198 | |||||||||||||||||
Accumulated amortization: | ||||||||||||||||||||
Patents and purchased technology | (14,198) | (14,198) | (14,198) | |||||||||||||||||
Customer relationships | (18,600) | (17,363) | (16,950) | |||||||||||||||||
Accumulated amortization | (32,798) | (31,561) | (31,148) | |||||||||||||||||
Net carrying amount | 4,400 | 5,637 | 6,050 | |||||||||||||||||
Intangible assets not subject to amortization | 97,921 | 97,921 | 115,421 | |||||||||||||||||
Intangible assets, net | $ | 102,321 | $ | 103,558 | $ | 121,471 |
(in thousands) | September 30, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||
Intangible assets with definite lives: | ||||||||||||||||||||
Patents and purchased technology | $ | 14,198 | $ | 14,198 | $ | 14,198 | ||||||||||||||
Customer relationships | 23,000 | 23,000 | 23,000 | |||||||||||||||||
Gross carrying amount | 37,198 | 37,198 | 37,198 | |||||||||||||||||
Accumulated amortization: | ||||||||||||||||||||
Patents and purchased technology | (14,198) | (14,198) | (14,198) | |||||||||||||||||
Customer relationships | (20,249) | (19,013) | (18,600) | |||||||||||||||||
Accumulated amortization | (34,447) | (33,211) | (32,798) | |||||||||||||||||
Net carrying amount | 2,751 | 3,987 | 4,400 | |||||||||||||||||
Intangible assets with indefinite lives | 97,921 | 97,921 | 97,921 | |||||||||||||||||
Intangible assets, net | $ | 100,672 | $ | 101,908 | $ | 102,321 |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
(in thousands) | |||||
2021 | $ | 1,650 | |||
2022 | 1,650 | ||||
2023 | 1,650 | ||||
2024 | 688 | ||||
2025 | — |
(in thousands) | |||||
2022 | $ | 413 | |||
2023 | 1,650 | ||||
2024 | 688 | ||||
2025 | — | ||||
2026 | — | ||||
2027 | — |
NOTE 4 — SHORT-TERM BORROWINGS AND CREDIT LINES |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
NOTE 5 — COMMITMENTS AND CONTINGENCIES |
NOTE 6 — SHAREHOLDERS' EQUITY |
NOTE 7 — STOCK-BASED COMPENSATION |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Stock options | $ | 1,500 | $ | 1,775 | $ | 5,271 | $ | 5,234 | ||||||||||||||||||
Restricted stock units | 3,164 | 3,315 | 9,216 | 7,568 | ||||||||||||||||||||||
Total | $ | 4,664 | $ | 5,090 | $ | 14,487 | $ | 12,802 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Stock options | $ | 2,018 | $ | 1,500 | $ | 5,853 | $ | 5,271 | ||||||||||||||||||
Restricted stock units | 3,417 | 3,164 | 10,218 | 9,216 | ||||||||||||||||||||||
Total | $ | 5,435 | $ | 4,664 | $ | 16,071 | $ | 14,487 |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
NOTE 8 — EARNINGS PER SHARE |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
Weighted average common shares outstanding, used in computing basic earnings per share | 65,862 | 66,179 | 66,182 | 66,427 | ||||||||||||||||||||||||||||
Effect of dilutive stock options and restricted stock units | 404 | 358 | 491 | 380 | ||||||||||||||||||||||||||||
Weighted average common shares outstanding, used in computing diluted earnings per share | 66,266 | 66,537 | 66,673 | 66,807 | ||||||||||||||||||||||||||||
Earnings per share of common stock: | ||||||||||||||||||||||||||||||||
Basic | $ | 1.53 | $ | 0.95 | $ | 2.98 | $ | 0.18 | ||||||||||||||||||||||||
Diluted | $ | 1.52 | $ | 0.94 | $ | 2.96 | $ | 0.18 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||
Weighted average common shares outstanding, used in computing basic earnings per share | 62,098 | 65,862 | 62,967 | 66,182 | ||||||||||||||||||||||||||||
Effect of dilutive stock options and restricted stock units | 112 | 404 | 211 | 491 | ||||||||||||||||||||||||||||
Weighted average common shares outstanding, used in computing diluted earnings per share | 62,210 | 66,266 | 63,178 | 66,673 | ||||||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 1.80 | $ | 1.53 | $ | 2.95 | $ | 2.98 | ||||||||||||||||||||||||
Diluted | $ | 1.80 | $ | 1.52 | $ | 2.94 | $ | 2.96 |
NOTE 9 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
(in thousands) | Unrealized holding gains (losses) on derivative transactions | Foreign currency translation adjustments | Total | |||||||||||||||||||||||
Balance at June 30, 2021 | $ | (4,357) | $ | 2,201 | $ | (2,156) | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 8,170 | (11,422) | (3,252) | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss)(1) | 2,382 | — | 2,382 | |||||||||||||||||||||||
Net other comprehensive income (loss) during the year | 10,552 | (11,422) | (870) | |||||||||||||||||||||||
Balance at September 30, 2021 | $ | 6,195 | $ | (9,221) | $ | (3,026) |
(in thousands) | Unrealized gains (losses) on derivative transactions | Foreign currency translation adjustments | Total | ||||||||||||||||||||
Balance as of June 30, 2022 | $ | 23,631 | $ | (45,364) | $ | (21,733) | |||||||||||||||||
Other comprehensive income (loss) before reclassifications | 17,191 | (30,058) | (12,867) | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) (1) | (2,970) | — | (2,970) | ||||||||||||||||||||
Net other comprehensive income (loss) during the year | 14,221 | (30,058) | (15,837) | ||||||||||||||||||||
Balance as of September 30, 2022 | $ | 37,852 | $ | (75,422) | $ | (37,570) |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
(in thousands) | Unrealized gains (losses) on derivative transactions | Foreign currency translation adjustments | Total | |||||||||||||||||||||||
Balance as of June 30, 2021 | $ | (4,357) | $ | 2,201 | $ | (2,156) | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 8,170 | (11,422) | (3,252) | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) (1) | 2,382 | — | 2,382 | |||||||||||||||||||||||
Net other comprehensive income (loss) during the year | 10,552 | (11,422) | (870) | |||||||||||||||||||||||
Balance as of September 30, 2021 | $ | 6,195 | $ | (9,221) | $ | (3,026) |
(in thousands) | Unrealized gains (losses) on available for sale securities | Unrealized holding gains (losses) on derivative transactions | Foreign currency translation adjustments | Total | ||||||||||||||||||||||
Balance at June 30, 2020 | $ | (4) | $ | 16,145 | $ | (22,001) | $ | (5,860) | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | — | (6,398) | 11,175 | 4,777 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss)(1) | — | (5,287) | — | (5,287) | ||||||||||||||||||||||
Net other comprehensive income (loss) during the year | — | (11,685) | 11,175 | (510) | ||||||||||||||||||||||
Balance at September 30, 2020 | $ | (4) | $ | 4,460 | $ | (10,826) | $ | (6,370) |
(in thousands) | Unrealized gains (losses) on available-for-sale securities | Unrealized gains (losses) on derivative transactions | Foreign currency translation adjustments | Total | ||||||||||||||||||||||
Balance as of December 31, 2021 | $ | —�� | $ | 9,914 | $ | (14,290) | $ | (4,376) | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (451) | 31,780 | (61,132) | (29,803) | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) (1) | 451 | (3,842) | — | (3,391) | ||||||||||||||||||||||
Net other comprehensive income (loss) during the year | — | 27,938 | (61,132) | (33,194) | ||||||||||||||||||||||
Balance as of September 30, 2022 | $ | — | $ | 37,852 | $ | (75,422) | $ | (37,570) |
(in thousands) | (in thousands) | Unrealized holding gains (losses) on derivative transactions | Foreign currency translation adjustments | Total | (in thousands) | Unrealized gains (losses) on derivative transactions | Foreign currency translation adjustments | Total | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | (9,369) | $ | 10,175 | $ | 806 | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | Balance as of December 31, 2020 | $ | (9,369) | $ | 10,175 | $ | 806 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | Other comprehensive income (loss) before reclassifications | 13,547 | (19,396) | (5,849) | Other comprehensive income (loss) before reclassifications | 13,547 | (19,396) | (5,849) | ||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss)(1) | Amounts reclassified from accumulated other comprehensive income (loss)(1) | 2,017 | — | 2,017 | Amounts reclassified from accumulated other comprehensive income (loss) (1) | 2,017 | — | 2,017 | ||||||||||||||||||||||||||||||||||||||||||||
Net other comprehensive income (loss) during the year | Net other comprehensive income (loss) during the year | 15,564 | (19,396) | (3,832) | Net other comprehensive income (loss) during the year | 15,564 | (19,396) | (3,832) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | 6,195 | $ | (9,221) | $ | (3,026) | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2021 | Balance as of September 30, 2021 | $ | 6,195 | $ | (9,221) | $ | (3,026) |
(in thousands) | Unrealized gains (losses) on available for sale securities | Unrealized holding gains (losses) on derivative transactions | Foreign currency translation adjustments | Total | ||||||||||||||||||||||
Balance at December 31, 2019 | $ | (4) | $ | 9,482 | $ | (13,903) | $ | (4,425) | ||||||||||||||||||
Other comprehensive income before reclassifications | — | 4,617 | 3,077 | 7,694 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss)(1) | — | (9,639) | — | (9,639) | ||||||||||||||||||||||
Net other comprehensive income (loss) during the year | — | (5,022) | 3,077 | (1,945) | ||||||||||||||||||||||
Balance at September 30, 2020 | $ | (4) | $ | 4,460 | $ | (10,826) | $ | (6,370) |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
NOTE 10 — SEGMENT INFORMATION |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Net sales to unrelated entities: | ||||||||||||||||||||||||||
U.S. | $ | 510,486 | $ | 445,620 | $ | 1,298,213 | $ | 1,004,733 | ||||||||||||||||||
LAAP | 102,754 | 90,951 | 292,706 | 260,912 | ||||||||||||||||||||||
EMEA | 109,150 | 99,159 | 268,489 | 213,298 | ||||||||||||||||||||||
Canada | 82,316 | 65,362 | 137,274 | 106,988 | ||||||||||||||||||||||
$ | 804,706 | $ | 701,092 | $ | 1,996,682 | $ | 1,585,931 | |||||||||||||||||||
Segment operating income: | ||||||||||||||||||||||||||
U.S. | $ | 139,101 | $ | 96,577 | $ | 320,819 | $ | 118,454 | ||||||||||||||||||
LAAP | 7,628 | 4,736 | 16,347 | 8,690 | ||||||||||||||||||||||
EMEA | 26,215 | 18,959 | 47,809 | 19,032 | ||||||||||||||||||||||
Canada | 22,849 | 19,767 | 29,710 | 15,142 | ||||||||||||||||||||||
Total segment operating income | 195,793 | 140,039 | 414,685 | 161,318 | ||||||||||||||||||||||
Unallocated corporate expenses | (62,332) | (54,396) | (175,749) | (147,962) | ||||||||||||||||||||||
Interest income (expense), net | 196 | (280) | 1,072 | 728 | ||||||||||||||||||||||
Other non-operating income (expense), net | 201 | (465) | (397) | 2,208 | ||||||||||||||||||||||
Income before income tax | $ | 133,858 | $ | 84,898 | $ | 239,611 | $ | 16,292 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||
Net sales to unrelated entities: | ||||||||||||||||||||||||||||||||
U.S. | $ | 607,074 | $ | 510,486 | $ | 1,521,453 | $ | 1,298,213 | ||||||||||||||||||||||||
LAAP | 115,328 | 102,754 | 309,896 | 292,706 | ||||||||||||||||||||||||||||
EMEA | 153,530 | 109,150 | 305,789 | 268,489 | ||||||||||||||||||||||||||||
Canada | 79,127 | 82,316 | 157,494 | 137,274 | ||||||||||||||||||||||||||||
$ | 955,059 | $ | 804,706 | $ | 2,294,632 | $ | 1,996,682 | |||||||||||||||||||||||||
Segment operating income | ||||||||||||||||||||||||||||||||
U.S. | $ | 145,268 | $ | 139,101 | $ | 325,790 | $ | 320,819 | ||||||||||||||||||||||||
LAAP | 11,771 | 7,628 | 21,712 | 16,347 | ||||||||||||||||||||||||||||
EMEA | 35,567 | 26,215 | 51,036 | 47,809 | ||||||||||||||||||||||||||||
Canada | 20,237 | 22,849 | 31,913 | 29,710 | ||||||||||||||||||||||||||||
Total segment operating income | 212,843 | 195,793 | 430,451 | 414,685 | ||||||||||||||||||||||||||||
Unallocated corporate expenses | (67,582) | (62,332) | (192,751) | (175,749) | ||||||||||||||||||||||||||||
Interest income, net | 765 | 196 | 1,659 | 1,072 | ||||||||||||||||||||||||||||
Other non-operating income (expense), net | (269) | 201 | (1,660) | (397) | ||||||||||||||||||||||||||||
Income before income tax | $ | 145,757 | $ | 133,858 | $ | 237,699 | $ | 239,611 | ||||||||||||||||||||||||
NOTE 11 — FINANCIAL INSTRUMENTS AND RISK MANAGEMENT |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
(in thousands) | September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||||||
Derivative instruments designated as cash flow hedges: | ||||||||||||||||||||
Currency forward contracts | $ | 471,250 | $ | 417,707 | $ | 419,402 | ||||||||||||||
Derivative instruments not designated as cash flow hedges: | ||||||||||||||||||||
Currency forward contracts | 247,134 | 326,280 | 224,573 |
(in thousands) | September 30, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||
Derivative instruments designated as cash flow hedges: | ||||||||||||||||||||
Currency forward contracts | $ | 459,189 | $ | 485,083 | $ | 471,250 | ||||||||||||||
Derivative instruments not designated as hedges: | ||||||||||||||||||||
Currency forward contracts | 287,825 | 267,982 | 247,134 |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
(in thousands) | Balance Sheet Classification | September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||||||||
Derivative instruments designated as cash flow hedges: | |||||||||||||||||||||||
Derivative instruments in asset positions: | |||||||||||||||||||||||
Currency forward contracts | Prepaid expenses and other current assets | $ | 5,500 | $ | 947 | $ | 4,729 | ||||||||||||||||
Currency forward contracts | Other non-current assets | 8,723 | 1,126 | 3,454 | |||||||||||||||||||
Derivative instruments in liability positions: | |||||||||||||||||||||||
Currency forward contracts | Accrued liabilities | 2,164 | 7,573 | 2,034 | |||||||||||||||||||
Currency forward contracts | Other long-term liabilities | 449 | 6,590 | 1,186 | |||||||||||||||||||
Derivative instruments not designated as cash flow hedges: | |||||||||||||||||||||||
Derivative instruments in asset positions: | |||||||||||||||||||||||
Currency forward contracts | Prepaid expenses and other current assets | 1,633 | 1,650 | 2,211 | |||||||||||||||||||
Currency forward contracts | Other non-current assets | 109 | — | — | |||||||||||||||||||
Derivative instruments in liability positions: | |||||||||||||||||||||||
Currency forward contracts | Accrued liabilities | 251 | 2,268 | 381 | |||||||||||||||||||
Currency forward contracts | Other long-term liabilities | 17 | — | — |
(in thousands) | Balance Sheet Classification | September 30, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||
Derivative instruments designated as cash flow hedges: | |||||||||||||||||||||||
Derivative instruments in asset positions: | |||||||||||||||||||||||
Currency forward contracts | Prepaid expenses and other current assets | $ | 32,289 | $ | 7,927 | $ | 5,500 | ||||||||||||||||
Currency forward contracts | Other non-current assets | 13,919 | 10,142 | 8,723 | |||||||||||||||||||
Derivative instruments in liability positions: | |||||||||||||||||||||||
Currency forward contracts | Accrued liabilities | — | 2,545 | 2,164 | |||||||||||||||||||
Currency forward contracts | Other long-term liabilities | 436 | 318 | 449 | |||||||||||||||||||
Derivative instruments not designated as cash flow hedges: | |||||||||||||||||||||||
Derivative instruments in asset positions: | |||||||||||||||||||||||
Currency forward contracts | Prepaid expenses and other current assets | 2,912 | 1,470 | 1,633 | |||||||||||||||||||
Currency forward contracts | Other non-current assets | — | — | 109 | |||||||||||||||||||
Derivative instruments in liability positions: | |||||||||||||||||||||||
Currency forward contracts | Accrued liabilities | 1,514 | 1,027 | 251 | |||||||||||||||||||
Currency forward contracts | Other long-term liabilities | — | — | 17 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
(in thousands) | Statement Of Operations Classification | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Currency Forward Contracts: | |||||||||||||||||||||||||||||
Derivative instruments designated as cash flow hedges: | |||||||||||||||||||||||||||||
Gain (loss) recognized in other comprehensive loss, net of tax | — | $ | 8,170 | $ | (6,398) | $ | 13,547 | $ | 4,617 | ||||||||||||||||||||
Gain (loss) reclassified from accumulated other comprehensive income (loss) to income for the effective portion | Net sales | (170) | 80 | (182) | 123 | ||||||||||||||||||||||||
Gain (loss) reclassified from accumulated other comprehensive income (loss) to income for the effective portion | Cost of sales | (3,257) | 6,906 | (2,833) | 11,527 | ||||||||||||||||||||||||
Gain reclassified from accumulated other comprehensive income (loss) to income as a result of cash flow hedge discontinuance | Other non-operating income (expense), net | 345 | 60 | 451 | 1,177 | ||||||||||||||||||||||||
Derivative instruments not designated as cash flow hedges: | |||||||||||||||||||||||||||||
Gain (loss) recognized in income | Other non-operating income (expense), net | 1,077 | (1,795) | 355 | (465) |
Statement Of Operations Classification | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Currency Forward Contracts: | |||||||||||||||||||||||||||||||||||
Derivative instruments designated as cash flow hedges: | |||||||||||||||||||||||||||||||||||
Gain recognized in other comprehensive income (loss), net of tax | — | $ | 17,191 | $ | 8,170 | $ | 31,780 | $ | 13,547 | ||||||||||||||||||||||||||
Loss reclassified from accumulated other comprehensive income (loss) to income for the effective portion | Net sales | (28) | (170) | (204) | (182) | ||||||||||||||||||||||||||||||
Gain (loss) reclassified from accumulated other comprehensive income (loss) to income for the effective portion | Cost of sales | 4,114 | (3,257) | 5,373 | (2,833) | ||||||||||||||||||||||||||||||
Gain reclassified from accumulated other comprehensive income (loss) to income as a result of cash flow hedge discontinuance | Other non-operating income (expense), net | — | 345 | 222 | 451 | ||||||||||||||||||||||||||||||
Derivative instruments not designated as cash flow hedges: | |||||||||||||||||||||||||||||||||||
Gain recognized in income | Other non-operating income (expense), net | 1,341 | 1,077 | 2,638 | 355 | ||||||||||||||||||||||||||||||
Notes to Condensed Consolidated Financial Statements (Unaudited) |
NOTE 12 — FAIR VALUE MEASURES |
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. |
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||
Money market funds | $ | 79 | $ | — | $ | — | $ | 79 | ||||||||||||||||||
Mutual fund shares | 893 | — | — | 893 | ||||||||||||||||||||||
Other current assets: | ||||||||||||||||||||||||||
Derivative financial instruments | — | 35,201 | — | 35,201 | ||||||||||||||||||||||
Non-current assets: | ||||||||||||||||||||||||||
Money market funds | 1,201 | — | — | 1,201 | ||||||||||||||||||||||
Mutual fund shares | 17,332 | — | — | 17,332 | ||||||||||||||||||||||
Derivative financial instruments | — | 13,919 | — | 13,919 | ||||||||||||||||||||||
Total assets measured at fair value | $ | 19,505 | $ | 49,120 | $ | — | $ | 68,625 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Accrued liabilities: | ||||||||||||||||||||||||||
Derivative financial instruments | $ | — | $ | 1,514 | $ | — | $ | 1,514 | ||||||||||||||||||
Other long-term liabilities: | ||||||||||||||||||||||||||
Derivative financial instruments | — | 436 | — | 436 | ||||||||||||||||||||||
Total liabilities measured at fair value | $ | — | $ | 1,950 | $ | — | $ | 1,950 |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
(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 |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||||
Money market funds | $ | 2,903 | $ | — | $ | — | $ | 2,903 | ||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||
Money market funds | 67 | — | — | 67 | ||||||||||||||||||||||
Mutual fund shares | 1,065 | — | — | 1,065 | ||||||||||||||||||||||
Other current assets: | ||||||||||||||||||||||||||
Derivative financial instruments | — | 7,133 | — | 7,133 | ||||||||||||||||||||||
Non-current assets: | ||||||||||||||||||||||||||
Money market funds | 3,397 | — | — | 3,397 | ||||||||||||||||||||||
Mutual fund shares | 17,209 | — | — | 17,209 | ||||||||||||||||||||||
Derivative financial instruments | — | 8,832 | — | 8,832 | ||||||||||||||||||||||
Total assets measured at fair value | $ | 24,641 | $ | 15,965 | $ | — | $ | 40,606 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Accrued liabilities: | ||||||||||||||||||||||||||
Derivative financial instruments | $ | — | $ | 2,415 | $ | — | $ | 2,415 | ||||||||||||||||||
Other long-term liabilities: | ||||||||||||||||||||||||||
Derivative financial instruments | — | 466 | — | 466 | ||||||||||||||||||||||
Total liabilities measured at fair value | $ | — | $ | 2,881 | $ | — | $ | 2,881 |
(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 | — | — | 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 |
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||||
Money market funds | $ | 56,337 | $ | — | $ | — | $ | 56,337 | ||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||
Money market funds | 70 | — | — | 70 | ||||||||||||||||||||||
Mutual fund shares | 1,025 | — | — | 1,025 | ||||||||||||||||||||||
Other current assets: | ||||||||||||||||||||||||||
Derivative financial instruments | — | 6,940 | — | 6,940 | ||||||||||||||||||||||
Non-current assets: | ||||||||||||||||||||||||||
Money market funds | 4,621 | — | — | 4,621 | ||||||||||||||||||||||
Mutual fund shares | 11,974 | — | — | 11,974 | ||||||||||||||||||||||
Derivative financial instruments | — | 3,454 | — | 3,454 | ||||||||||||||||||||||
Total assets measured at fair value | $ | 74,027 | $ | 10,394 | $ | — | $ | 84,421 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Accrued liabilities: | ||||||||||||||||||||||||||
Derivative financial instruments | $ | — | $ | 2,415 | $ | — | $ | 2,415 | ||||||||||||||||||
Other long-term liabilities: | ||||||||||||||||||||||||||
Derivative financial instruments | — | 1,186 | — | 1,186 | ||||||||||||||||||||||
Total liabilities measured at fair value | $ | — | $ | 3,601 | $ | — | $ | 3,601 |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Cost of sales | 49.3 | 51.1 | 48.8 | 52.0 | |||||||||||||||||||
Gross profit | 50.7 | 48.9 | 51.2 | 48.0 | |||||||||||||||||||
Selling, general and administrative expenses | 34.8 | 37.3 | 39.9 | 47.6 | |||||||||||||||||||
Net licensing income | 0.7 | 0.6 | 0.7 | 0.4 | |||||||||||||||||||
Operating income | 16.6 | 12.2 | 12.0 | 0.8 | |||||||||||||||||||
Interest income (expense), net | — | — | — | 0.1 | |||||||||||||||||||
Other non-operating income (expense), net | — | (0.1) | — | 0.1 | |||||||||||||||||||
Income before income tax | 16.6 | 12.1 | 12.0 | 1.0 | |||||||||||||||||||
Income tax expense | (4.1) | (3.1) | (2.1) | (0.2) | |||||||||||||||||||
Net income | 12.5 | % | 9.0 | % | 9.9 | % | 0.8 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except for percentage of net sales and per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 955.0 | 100.0 | % | $ | 804.7 | 100.0 | % | $ | 2,294.6 | 100.0 | % | $ | 1,996.7 | 100.0 | % | ||||||||||||||||||||||||||||||||||
Cost of sales | 496.5 | 52.0 | 396.3 | 49.3 | 1,173.5 | 51.1 | 974.4 | 48.8 | ||||||||||||||||||||||||||||||||||||||||||
Gross profit | 458.5 | 48.0 | 408.4 | 50.7 | 1,121.1 | 48.9 | 1,022.3 | 51.2 | ||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 319.0 | 33.4 | 280.1 | 34.8 | 899.3 | 39.2 | 796.3 | 39.9 | ||||||||||||||||||||||||||||||||||||||||||
Net licensing income | 5.8 | 0.6 | 5.2 | 0.7 | 15.9 | 0.7 | 12.9 | 0.7 | ||||||||||||||||||||||||||||||||||||||||||
Operating income | 145.3 | 15.2 | 133.5 | 16.6 | 237.7 | 10.4 | 238.9 | 12.0 | ||||||||||||||||||||||||||||||||||||||||||
Interest income, net | 0.8 | 0.1 | 0.2 | — | 1.7 | 0.1 | 1.1 | — | ||||||||||||||||||||||||||||||||||||||||||
Other non-operating income (expense), net | (0.3) | — | 0.2 | — | (1.7) | (0.1) | (0.4) | — | ||||||||||||||||||||||||||||||||||||||||||
Income before income tax | 145.8 | 15.3 | 133.9 | 16.6 | 237.7 | 10.4 | 239.6 | 12.0 | ||||||||||||||||||||||||||||||||||||||||||
Income tax expense | (34.0) | (3.6) | (33.3) | (4.1) | (51.9) | (2.3) | (42.5) | (2.1) | ||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 111.8 | 11.7 | % | $ | 100.6 | 12.5 | % | $ | 185.8 | 8.1 | % | $ | 197.1 | 9.9 | % | ||||||||||||||||||||||||||||||||||
Diluted earnings per share | $ | 1.80 | $ | 1.52 | $ | 2.94 | $ | 2.96 |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
(in millions, except for percentage changes) | Reported Net Sales 2021 | Adjust for Foreign Currency Translation | Constant-currency Net Sales 2021(1) | Reported Net Sales 2020 | Reported Net Sales % Change | Constant-currency Net Sales % Change(1) | ||||||||||||||||||||||||||||||||
Brand Net Sales: | ||||||||||||||||||||||||||||||||||||||
Columbia | $ | 651.5 | $ | (7.6) | $ | 643.9 | $ | 559.7 | 16% | 15% | ||||||||||||||||||||||||||||
SOREL | 88.1 | (0.9) | 87.2 | 91.5 | (4)% | (5)% | ||||||||||||||||||||||||||||||||
prAna | 36.4 | — | 36.4 | 30.5 | 19% | 19% | ||||||||||||||||||||||||||||||||
Mountain Hardwear | 28.7 | (0.1) | 28.6 | 19.4 | 48% | 47% | ||||||||||||||||||||||||||||||||
Total | $ | 804.7 | $ | (8.6) | $ | 796.1 | $ | 701.1 | 15% | 14% | ||||||||||||||||||||||||||||
Product Category Net Sales: | ||||||||||||||||||||||||||||||||||||||
Apparel, Accessories and Equipment | $ | 621.1 | $ | (6.3) | $ | 614.8 | $ | 510.2 | 22% | 21% | ||||||||||||||||||||||||||||
Footwear | 183.6 | (2.3) | 181.3 | 190.9 | (4)% | (5)% | ||||||||||||||||||||||||||||||||
Total | $ | 804.7 | $ | (8.6) | $ | 796.1 | $ | 701.1 | 15% | 14% | ||||||||||||||||||||||||||||
Channel Net Sales: | ||||||||||||||||||||||||||||||||||||||
Wholesale | $ | 518.2 | $ | (6.7) | $ | 511.5 | $ | 471.5 | 10% | 8% | ||||||||||||||||||||||||||||
DTC | 286.5 | (1.9) | 284.6 | 229.6 | 25% | 24% | ||||||||||||||||||||||||||||||||
Total | $ | 804.7 | $ | (8.6) | $ | 796.1 | $ | 701.1 | 15% | 14% |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
(in millions, except for percentages) | Reported Net Sales 2022 | Adjust for Foreign Currency Translation | Constant-currency Net Sales 2022 (1) | Reported Net Sales 2021 | Reported Net Sales % Change | Constant-currency Net Sales % Change (1) | ||||||||||||||||||||||||||||||||
Brand Net Sales: | ||||||||||||||||||||||||||||||||||||||
Columbia | $ | 773.3 | $ | 26.6 | $ | 799.9 | $ | 651.5 | 19% | 23% | ||||||||||||||||||||||||||||
SOREL | 112.4 | 2.6 | 115.0 | 88.1 | 28% | 31% | ||||||||||||||||||||||||||||||||
prAna | 37.4 | — | 37.4 | 36.4 | 3% | 3% | ||||||||||||||||||||||||||||||||
Mountain Hardwear | 31.9 | 0.4 | 32.3 | 28.7 | 11% | 13% | ||||||||||||||||||||||||||||||||
Total | $ | 955.0 | $ | 29.6 | $ | 984.6 | $ | 804.7 | 19% | 22% | ||||||||||||||||||||||||||||
Product Category Net Sales: | ||||||||||||||||||||||||||||||||||||||
Apparel, Accessories and Equipment | $ | 726.3 | $ | 21.2 | $ | 747.5 | $ | 621.1 | 17% | 20% | ||||||||||||||||||||||||||||
Footwear | 228.7 | 8.4 | 237.1 | 183.6 | 25% | 29% | ||||||||||||||||||||||||||||||||
Total | $ | 955.0 | $ | 29.6 | $ | 984.6 | $ | 804.7 | 19% | 22% | ||||||||||||||||||||||||||||
Channel Net Sales: | ||||||||||||||||||||||||||||||||||||||
Wholesale | $ | 645.1 | $ | 20.4 | $ | 665.5 | $ | 518.2 | 24% | 28% | ||||||||||||||||||||||||||||
DTC | 309.9 | 9.2 | 319.1 | 286.5 | 8% | 11% | ||||||||||||||||||||||||||||||||
Total | $ | 955.0 | $ | 29.6 | $ | 984.6 | $ | 804.7 | 19% | 22% |
Three Months Ended September 30, | ||||||||||||||||||||
(in millions, except for percentages and basis points) | 2022 | 2021 | Change | |||||||||||||||||
Gross profit | $ | 458.5 | $ | 408.4 | $ | 50.1 | 12 | % | ||||||||||||
Gross margin | 48.0 | % | 50.7 | % | -270 bps |
Three Months September 30, | ||||||||||||||||||||
(in millions, except for percentages and basis points) | 2022 | 2021 | Change | |||||||||||||||||
Selling, general and administrative expenses | $ | 319.0 | $ | 280.1 | $ | 38.9 | 14 | % | ||||||||||||
Selling, general and administrative expenses as percent of net sales | 33.4 | % | 34.8 | % | -140 bps |
Three Months Ended September 30, | ||||||||||||||||||||
(in millions, except for percentages) | 2022 | 2021 | Change | |||||||||||||||||
Income tax expense | $ | (34.0) | $ | (33.3) | $ | 0.7 | 2 | % | ||||||||||||
Effective income tax rate | 23.3 | % | 24.9 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
(in millions, except for percentage changes) | Reported Net Sales 2021 | Adjust for Foreign Currency Translation | Constant-currency Net Sales 2021(1) | Reported Net Sales 2020 | Reported Net Sales % Change | Constant-currency Net Sales % Change(1) | ||||||||||||||||||||||||||||||||
Brand Net Sales: | ||||||||||||||||||||||||||||||||||||||
Columbia | $ | 1,663.2 | $ | (27.8) | $ | 1,635.4 | $ | 1,297.2 | 28% | 26% | ||||||||||||||||||||||||||||
SOREL | 157.5 | (1.8) | 155.7 | 143.5 | 10% | 9% | ||||||||||||||||||||||||||||||||
prAna | 107.6 | — | 107.6 | 94.7 | 14% | 14% | ||||||||||||||||||||||||||||||||
Mountain Hardwear | 68.4 | (0.6) | 67.8 | 50.5 | 35% | 34% | ||||||||||||||||||||||||||||||||
Total | $ | 1,996.7 | $ | (30.2) | $ | 1,966.5 | $ | 1,585.9 | 26% | 24% | ||||||||||||||||||||||||||||
Product Category Net Sales: | ||||||||||||||||||||||||||||||||||||||
Apparel, Accessories and Equipment | $ | 1,543.1 | $ | (21.0) | $ | 1,522.1 | $ | 1,206.2 | 28% | 26% | ||||||||||||||||||||||||||||
Footwear | 453.6 | (9.2) | 444.4 | 379.7 | 19% | 17% | ||||||||||||||||||||||||||||||||
Total | $ | 1,996.7 | $ | (30.2) | $ | 1,966.5 | $ | 1,585.9 | 26% | 24% | ||||||||||||||||||||||||||||
Channel Net Sales: | ||||||||||||||||||||||||||||||||||||||
Wholesale | $ | 1,155.9 | $ | (19.2) | $ | 1,136.7 | $ | 957.3 | 21% | 19% | ||||||||||||||||||||||||||||
DTC | 840.8 | (11.0) | 829.8 | 628.6 | 34% | 32% | ||||||||||||||||||||||||||||||||
Total | $ | 1,996.7 | $ | (30.2) | $ | 1,966.5 | $ | 1,585.9 | 26% | 24% |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
(in millions, except for percentages) | Reported Net Sales 2022 | Adjust for Foreign Currency Translation | Constant-currency Net Sales 2022 (1) | Reported Net Sales 2021 | Reported Net Sales % Change | Constant-currency Net Sales % Change (1) | ||||||||||||||||||||||||||||||||
Brand Net Sales: | ||||||||||||||||||||||||||||||||||||||
Columbia | $ | 1,903.0 | $ | 48.9 | $ | 1,951.9 | $ | 1,663.2 | 14% | 17% | ||||||||||||||||||||||||||||
SOREL | 204.7 | 3.3 | 208.0 | 157.5 | 30% | 32% | ||||||||||||||||||||||||||||||||
prAna | 110.8 | — | 110.8 | 107.6 | 3% | 3% | ||||||||||||||||||||||||||||||||
Mountain Hardwear | 76.1 | 0.8 | 76.9 | 68.4 | 11% | 12% | ||||||||||||||||||||||||||||||||
Total | $ | 2,294.6 | $ | 53.0 | $ | 2,347.6 | $ | 1,996.7 | 15% | 18% | ||||||||||||||||||||||||||||
Product Category Net Sales: | ||||||||||||||||||||||||||||||||||||||
Apparel, Accessories and Equipment | $ | 1,760.6 | $ | 37.2 | $ | 1,797.8 | $ | 1,543.1 | 14% | 17% | ||||||||||||||||||||||||||||
Footwear | 534.0 | 15.8 | 549.8 | 453.6 | 18% | 21% | ||||||||||||||||||||||||||||||||
Total | $ | 2,294.6 | $ | 53.0 | $ | 2,347.6 | $ | 1,996.7 | 15% | 18% | ||||||||||||||||||||||||||||
Channel Net Sales: | ||||||||||||||||||||||||||||||||||||||
Wholesale | $ | 1,353.2 | $ | 31.8 | $ | 1,385.0 | $ | 1,155.9 | 17% | 20% | ||||||||||||||||||||||||||||
DTC | 941.4 | 21.2 | 962.6 | 840.8 | 12% | 14% | ||||||||||||||||||||||||||||||||
Total | $ | 2,294.6 | $ | 53.0 | $ | 2,347.6 | $ | 1,996.7 | 15% | 18% |
Nine Months Ended September 30, | ||||||||||||||||||||
(in millions, except for percentages and basis points) | 2022 | 2021 | Change | |||||||||||||||||
Gross profit | $ | 1,121.1 | $ | 1,022.3 | $ | 98.8 | 10 | % | ||||||||||||
Gross margin | 48.9 | % | 51.2 | % | -230 bps |
Nine Months Ended September 30, | ||||||||||||||||||||
(in millions, except for percentages and basis points) | 2022 | 2021 | Change | |||||||||||||||||
Selling, general and administrative expenses | $ | 899.3 | $ | 796.3 | $ | 103.0 | 13 | % | ||||||||||||
Selling, general and administrative expenses as percent of net sales | 39.2 | % | 39.9 | % | -70 bps |
Nine Months Ended September 30, | ||||||||||||||||||||
(in millions, except for percentages) | 2022 | 2021 | Change | |||||||||||||||||
Income tax expense | $ | (51.9) | $ | (42.5) | $ | 9.4 | 22 | % | ||||||||||||
Effective income tax rate | 21.9 | % | 17.7 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
(in millions, except for percentage changes) | Reported Net Sales 2021 | Adjust for Foreign Currency Translation | Constant-currency Net Sales 2021(1) | Reported Net Sales 2020 | Reported Net Sales % Change | Constant-currency Net Sales % Change(1) | ||||||||||||||||||||||||||||||||
U.S. | $ | 510.5 | $ | — | $ | 510.5 | $ | 445.6 | 15% | 15% | ||||||||||||||||||||||||||||
LAAP | 102.7 | (2.3) | 100.4 | 90.9 | 13% | 10% | ||||||||||||||||||||||||||||||||
EMEA | 109.2 | (1.3) | 107.9 | 99.2 | 10% | 9% | ||||||||||||||||||||||||||||||||
Canada | 82.3 | (5.0) | 77.3 | 65.4 | 26% | 18% | ||||||||||||||||||||||||||||||||
$ | 804.7 | $ | (8.6) | $ | 796.1 | $ | 701.1 | 15% | 14% | |||||||||||||||||||||||||||||
(1) Constant-currency net sales information is a non-GAAP financial measure, which excludes the effect of changes in foreign currency exchange rates against the 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. |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
(in millions, except for percentage changes) | Reported Net Sales 2022 | Adjust for Foreign Currency Translation | Constant-currency Net Sales 2022 (1) | Reported Net Sales 2021 | Reported Net Sales % Change | Constant-currency Net Sales % Change (1) | ||||||||||||||||||||||||||||||||
U.S. | $ | 607.0 | $ | — | $ | 607.0 | $ | 510.5 | 19% | 19% | ||||||||||||||||||||||||||||
LAAP | 115.4 | 12.0 | 127.4 | 102.7 | 12% | 24% | ||||||||||||||||||||||||||||||||
EMEA | 153.5 | 14.8 | 168.3 | 109.2 | 41% | 54% | ||||||||||||||||||||||||||||||||
Canada | 79.1 | 2.8 | 81.9 | 82.3 | (4)% | —% | ||||||||||||||||||||||||||||||||
$ | 955.0 | $ | 29.6 | $ | 984.6 | $ | 804.7 | 19% | 22% |
Three Months Ended September 30, | ||||||||||||||||||||
(in millions) | 2021 | 2020 | Change ($) | |||||||||||||||||
U.S. | $ | 139.1 | $ | 96.6 | $ | 42.5 | ||||||||||||||
LAAP | 7.6 | 4.7 | 2.9 | |||||||||||||||||
EMEA | 26.2 | 19.0 | 7.2 | |||||||||||||||||
Canada | 22.8 | 19.7 | 3.1 | |||||||||||||||||
Total segment operating income | 195.7 | 140.0 | 55.7 | |||||||||||||||||
Unallocated corporate expenses | (62.2) | (54.4) | (7.8) | |||||||||||||||||
Operating income | $ | 133.5 | $ | 85.6 | $ | 47.9 |
Three Months Ended September 30, | ||||||||||||||||||||
(in millions) | 2022 | 2021 | Change | |||||||||||||||||
U.S. | $ | 145.3 | $ | 139.1 | $ | 6.2 | ||||||||||||||
LAAP | 11.8 | 7.6 | 4.2 | |||||||||||||||||
EMEA | 35.6 | 26.2 | 9.4 | |||||||||||||||||
Canada | 20.2 | 22.8 | (2.6) | |||||||||||||||||
Total segment operating income | 212.9 | 195.7 | 17.2 | |||||||||||||||||
Unallocated corporate expenses | (67.6) | (62.2) | (5.4) | |||||||||||||||||
Operating income | $ | 145.3 | $ | 133.5 | $ | 11.8 |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
(in millions, except for percentage changes) | Reported Net Sales 2021 | Adjust for Foreign Currency Translation | Constant-currency Net Sales 2021(1) | Reported Net Sales 2020 | Reported Net Sales % Change | Constant-currency Net Sales % Change(1) | ||||||||||||||||||||||||||||||||
U.S. | $ | 1,298.2 | $ | — | $ | 1,298.2 | $ | 1,004.7 | 29% | 29% | ||||||||||||||||||||||||||||
LAAP | 292.7 | (11.9) | 280.8 | 260.9 | 12% | 8% | ||||||||||||||||||||||||||||||||
EMEA | 268.5 | (9.6) | 258.9 | 213.3 | 26% | 21% | ||||||||||||||||||||||||||||||||
Canada | 137.3 | (8.7) | 128.6 | 107.0 | 28% | 20% | ||||||||||||||||||||||||||||||||
$ | 1,996.7 | $ | (30.2) | $ | 1,966.5 | $ | 1,585.9 | 26% | 24% | |||||||||||||||||||||||||||||
(1) Constant-currency net sales information is a non-GAAP financial measure, which excludes the effect of changes in foreign currency exchange rates against the 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. |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
(in millions, except for percentage changes) | Reported Net Sales 2022 | Adjust for Foreign Currency Translation | Constant-currency Net Sales 2022 (1) | Reported Net Sales 2021 | Reported Net Sales % Change | Constant-currency Net Sales % Change (1) | ||||||||||||||||||||||||||||||||
U.S. | $ | 1,521.4 | $ | — | $ | 1,521.4 | $ | 1,298.2 | 17% | 17% | ||||||||||||||||||||||||||||
LAAP | 309.9 | 24.6 | 334.5 | 292.7 | 6% | 14% | ||||||||||||||||||||||||||||||||
EMEA | 305.8 | 24.6 | 330.4 | 268.5 | 14% | 23% | ||||||||||||||||||||||||||||||||
Canada | 157.5 | 3.8 | 161.3 | 137.3 | 15% | 17% | ||||||||||||||||||||||||||||||||
$ | 2,294.6 | $ | 53.0 | $ | 2,347.6 | $ | 1,996.7 | 15% | 18% |
Nine Months Ended September 30, | ||||||||||||||||||||
(in millions) | 2021 | 2020 | Change ($) | |||||||||||||||||
U.S. | $ | 320.8 | $ | 118.5 | $ | 202.3 | ||||||||||||||
LAAP | 16.3 | 8.7 | 7.6 | |||||||||||||||||
EMEA | 47.8 | 19.0 | 28.8 | |||||||||||||||||
Canada | 29.7 | 15.1 | 14.6 | |||||||||||||||||
Total segment operating income | 414.6 | 161.3 | 253.3 | |||||||||||||||||
Unallocated corporate expenses | (175.7) | (147.9) | (27.8) | |||||||||||||||||
Operating income | $ | 238.9 | $ | 13.4 | $ | 225.5 |
Nine Months Ended September 30, | ||||||||||||||||||||
(in millions) | 2022 | 2021 | Change | |||||||||||||||||
U.S. | $ | 325.8 | $ | 320.8 | $ | 5.0 | ||||||||||||||
LAAP | 21.7 | 16.3 | 5.4 | |||||||||||||||||
EMEA | 51.0 | 47.8 | 3.2 | |||||||||||||||||
Canada | 31.9 | 29.7 | 2.2 | |||||||||||||||||
Total segment operating income | 430.4 | 414.6 | 15.8 | |||||||||||||||||
Unallocated corporate expenses | (192.7) | (175.7) | (17.0) | |||||||||||||||||
Operating income | $ | 237.7 | $ | 238.9 | $ | (1.2) |
Nine Months Ended September 30, | ||||||||||||||||||||
(in millions) | 2022 | 2021 | Change | |||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||||||
Operating activities | $ | (328.1) | $ | (15.6) | $ | (312.5) | ||||||||||||||
Investing activities | 88.5 | (19.2) | 107.7 | |||||||||||||||||
Financing activities | (339.7) | (151.4) | (188.3) | |||||||||||||||||
Net effect of exchange rate changes on cash | (24.9) | (5.0) | (19.9) | |||||||||||||||||
Net decrease in cash and cash equivalents | $ | (604.2) | $ | (191.2) | $ | (413.0) |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
PART II — OTHER INFORMATION |
ITEM 1. | LEGAL PROCEEDINGS |
Item 1A. | RISK FACTORS |
Item 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) | |||||||||||||||||||
July 1, 2021 through July 31, 2021 | 192,729 | $ | 97.94 | 192,729 | $ | 408.5 | |||||||||||||||||
August 1, 2021 through August 31, 2021 | 291,598 | $ | 101.72 | 291,598 | $ | 378.8 | |||||||||||||||||
September 1, 2021 through September 30, 2021 | 241,145 | $ | 98.71 | 241,145 | $ | 355.0 | |||||||||||||||||
Total | 725,472 | $ | 99.72 | 725,472 | $ | 355.0 |
ITEM 6. | EXHIBITS |
EXHIBIT INDEX |
Exhibit No. | Exhibit Name | |||||||
3.1 | ||||||||
3.1(a) | ||||||||
3.1(b) | ||||||||
3.2 | ||||||||
10.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
104 | Cover Page Interactive Data File, |
SIGNATURES |
COLUMBIA SPORTSWEAR COMPANY | ||||||||||||||||||||||||||
Date: | November | By: | /s/ JIM A. SWANSON | |||||||||||||||||||||||
Jim A. Swanson | ||||||||||||||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||||||||||||||
(Duly Authorized Officer and Principal Financial and Accounting Officer) | ||||||||||||||||||||||||||