Columbia project answer questions using information in the Fiscal Year 2021

questions

Total Return Analysis Columbia Sportswear Company Russell 1000 Index Russell 1000 Texties Apparel and Shoes Index Period October 1, 2021 through October 31, 2021 November 1, 2021 through November 30, 2021 December 1, 2021 through December 31, 2021 Total ITEM 6 $ $ [Reserved 2016 100.00 S 100.00 $ 100.00 $ 2017 Total Number of Shares Purchased 124.86 S 121.69 $ 123.55 $ Year Ended December 31, 2018 2019 147.61 $ 115.87 $ 126.99 $ 313,779 $ 31,301 S 56.246 $ 401,326 $ 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 of December 31, 2021, we had repurchased program does not obligate us to acquire any specific number of shares or to acquire shares over any specified period of time. Under this p s program a as of D 28.5 milion 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: Average Price Paid per Share 95.67 177.65 $ 152.28 $ 174.11 $ 102.70 97.38 96.46 2020 155.49 $ 184.20 $ 217.14 $ Total Number of Shares Purchased as Part of Publicly Announced Plans or Programis 2021 175.13 232.93 240.70 313,779 $ 31,301 $ 56.246 $ 401,325 $ Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) 325.0 321.8 316.3 316.3 195 (in milions, except for percentage of eet sales and per share amounts) Net sales Cost of sales Gross profit Seling, general and administrative expenses Net licensing income Operating income Interest income, net Other non-operating income (expense), net income before income tax Income tax expense Net income Diluted earnings per share Net Sales. Net sales by brand, product category and channel are summarized in the following table: On milions, except for percentages) Brand Net Sales: Columbia SOREL prAna Mountain Hardwear Total Reported Net Sales 2021 Adjust for Foreign Currency Translation 2,5574 $ 320.9 141.9 106.2 3,1264 $ (264) S (2.4) (0.5) (29.3) $ 2021 3,126.4 1,513.9 1,612.5 1,180.3 18.3 450.5 1.4 (0.4) 451.5 (97.4) 354.1 5.33 Constant-currency Net Sales 202100 Year Ended December 31, 2,531.0 $ 318.5 141.9 105.7 3,097.1 $ 100.0 % $ 48.4% 51.6% 37.8% 0.6% 14.4% -% -% Year Ended December 31, 14.4% (3.1)% 11.3% S Reported Net Sales 2020 1,996.9 293.5 131.6 79.6 2,501.6 2.501.6 1,277.7 1.223.9 1,098.9 12.0 137.0 04 21 139.5 (31.5) 108.0 2020 1.62 Reported Net Sales % Change 28% 9% 8% 33% 25% Close 27% 9% 8% 33% 24% 100.0 51.1% 48.9 43.9 0.5% 5.5% 0.15 5.61 (1.3)% 431 Constant-currency Net Sales % Change in milions, except for percentages) Brand Net Sales: Columbia SOREL prAna Mountain Hardwear Total Product Category Net Sales: Apparel, Accessories and Equipment Footwear Channel Net Sales: Wholesale DTC Reported Net Sales 2021 The Pre Adjust for Foreign Currency Translation 2.5574 S 3209 141.9 1062 3,1264 S 2.389.2 $ 7372 3,126.4 $ (26.4) $ (24) (0.5) (29.3) $ (20.3) $ (9.0) (29.3) $ Constant-currency Net Sales 2021 (19.5) $ 1,6604 S 1,400.0 3,1264 S Total (9.8) (29.3) S Constant-cumency net sales is a non-GAAP Snancial measure See Non-GAAP Financial Measure above for urther information Year Ended December 31, 2,5310 S 318.5 141.9 105.7 3,097.1 $ 2.368.9 $ 7282 3,097.1 $ 1,640.9 $ 1,4562 3,097.1 S Reported Net Sales 2020 1,996.9 293.5 131.6 79.6 2,501.6 1,867.6 634.0 2.501.6 1,403.3 1,098.3 2.501.6 Reported Net Sales % Change 28% 9% 8% 33% 25% 28% 16% 25% 18% 33% 25% Constant-currency Net Sales % Change 27% 9% 8% 33% 24% 27% 15% 17% 33% 24% COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K 11 in millions, except for percentages and besi points) Gross profit Gross margin 2021 1,612.5 $ 51.6% in ons except for percentages and bass points) Selling, general and administrative expenses Selling, general and administrative expenses as percent of net sales Year Ended December 31, 2020 1.223.9 $ 48.9% 2021 1,160.3 37.8% 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. Change 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, 2020 $ 388.6 270 bps 1,098.9 43.9% 32% Change 814 -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 ign wet sales by geographic segment are summarized in the following tacie in millions, except for percentage changes) JS. AAP EMEA Canada in millions) U.S LAAP EMEA Canada Reported Net Sales 2021 Total segment operating income Unallocated corporate expenses Operating income Adjust for Foreign Currency Translation 2.060.3 465.5 (7.5) 382.1 (9.0) 218.5 (12.8) 3,126.4 $ (293) S Constant-cumency 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: S Year Ended December 31, Constant-currency Net Sales 2021 $ 2,060.3 S 458.0 373.1 205.7 3,097.1 $ 2021 Reported Net Sales 2020 536.5 420 1,603.8 424.5 298.9 174.4 2.501.6 Reported Net Sales % Change 28% 10% 28% 25% 25% Year Ended December 31, 2020 $ 65.5 52.7 696.7 (2462) 450.5 $ 250.5 $ 35.9 31.2 37.6 355.2 (2182) 137.0 $ Constant-currency Net Sales % Change 28% 8% 25% 18% 24% Close Change 286.0 6.1 34.3 15.1 341.5 (28.0) 313.5 COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K 126 u Cash Flow Activities Cash flows from continuing operations are summarized in the following table On milions Cash and cash equivalents Net cash provided by (used in) Operating activities Investing activities Financing activities Net effect of exchange rate changes on cash Net increase (decrease) in cash and cash equivalents $ 2021 Year Ended December 31, 2020 763.4 $ 354.4 $ (163.8) (210.9) (7.0) (27.3) S 790.7 $ 276.1 S (272) (151.7) 7.5 104.7 $ Close Change (273) 78.3 (136.6) (59.2) (14.5) (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 labilities. 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 retum 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 2000, 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 mmon stock of StAR & milline and dildand armente in now chochriders of CEO & milline artists and be made the contraster in elkhead manesin S 10. 11. 12. Columbia's Fiscal Year 2021 balance sheet shows Accounts Receivable of $ 487,803, which represents the amount the company actually expects to collect from its customers. What is the company's estimate of the amount of receivables that will NOT be collected? (That is, what is the allowance for uncollectible accounts?) Columbia's Fiscal Year 2021 balance sheet shows Inventories of $ 645,379. According to Note 2, what inventory cost flow method does Columbia use to report inventory cost? What depreciation method does Columbia use for financial reporting for its Property, plant, and equipment? (See Note 2) Columbia's Fiscal Year 2021 balance sheet reports Property, plant, and equipment, net - $291,088. According to Note 5, what is the largest component of PP&E? How much is the company's accumulated depreciation as of December 31, 2021? Total Return Analysis Columbia Sportswear Company Russell 1000 Index Russell 1000 Texties Apparel and Shoes Index Period October 1, 2021 through October 31, 2021 November 1, 2021 through November 30, 2021 December 1, 2021 through December 31, 2021 Total ITEM 6 $ $ [Reserved 2016 100.00 S 100.00 $ 100.00 $ 2017 Total Number of Shares Purchased 124.86 S 121.69 $ 123.55 $ Year Ended December 31, 2018 2019 147.61 $ 115.87 $ 126.99 $ 313,779 $ 31,301 S 56.246 $ 401,326 $ 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 of December 31, 2021, we had repurchased program does not obligate us to acquire any specific number of shares or to acquire shares over any specified period of time. Under this p s program a as of D 28.5 milion 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: Average Price Paid per Share 95.67 177.65 $ 152.28 $ 174.11 $ 102.70 97.38 96.46 2020 155.49 $ 184.20 $ 217.14 $ Total Number of Shares Purchased as Part of Publicly Announced Plans or Programis 2021 175.13 232.93 240.70 313,779 $ 31,301 $ 56.246 $ 401,325 $ Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) 325.0 321.8 316.3 316.3 195 (in milions, except for percentage of eet sales and per share amounts) Net sales Cost of sales Gross profit Seling, general and administrative expenses Net licensing income Operating income Interest income, net Other non-operating income (expense), net income before income tax Income tax expense Net income Diluted earnings per share Net Sales. Net sales by brand, product category and channel are summarized in the following table: On milions, except for percentages) Brand Net Sales: Columbia SOREL prAna Mountain Hardwear Total Reported Net Sales 2021 Adjust for Foreign Currency Translation 2,5574 $ 320.9 141.9 106.2 3,1264 $ (264) S (2.4) (0.5) (29.3) $ 2021 3,126.4 1,513.9 1,612.5 1,180.3 18.3 450.5 1.4 (0.4) 451.5 (97.4) 354.1 5.33 Constant-currency Net Sales 202100 Year Ended December 31, 2,531.0 $ 318.5 141.9 105.7 3,097.1 $ 100.0 % $ 48.4% 51.6% 37.8% 0.6% 14.4% -% -% Year Ended December 31, 14.4% (3.1)% 11.3% S Reported Net Sales 2020 1,996.9 293.5 131.6 79.6 2,501.6 2.501.6 1,277.7 1.223.9 1,098.9 12.0 137.0 04 21 139.5 (31.5) 108.0 2020 1.62 Reported Net Sales % Change 28% 9% 8% 33% 25% Close 27% 9% 8% 33% 24% 100.0 51.1% 48.9 43.9 0.5% 5.5% 0.15 5.61 (1.3)% 431 Constant-currency Net Sales % Change in milions, except for percentages) Brand Net Sales: Columbia SOREL prAna Mountain Hardwear Total Product Category Net Sales: Apparel, Accessories and Equipment Footwear Channel Net Sales: Wholesale DTC Reported Net Sales 2021 The Pre Adjust for Foreign Currency Translation 2.5574 S 3209 141.9 1062 3,1264 S 2.389.2 $ 7372 3,126.4 $ (26.4) $ (24) (0.5) (29.3) $ (20.3) $ (9.0) (29.3) $ Constant-currency Net Sales 2021 (19.5) $ 1,6604 S 1,400.0 3,1264 S Total (9.8) (29.3) S Constant-cumency net sales is a non-GAAP Snancial measure See Non-GAAP Financial Measure above for urther information Year Ended December 31, 2,5310 S 318.5 141.9 105.7 3,097.1 $ 2.368.9 $ 7282 3,097.1 $ 1,640.9 $ 1,4562 3,097.1 S Reported Net Sales 2020 1,996.9 293.5 131.6 79.6 2,501.6 1,867.6 634.0 2.501.6 1,403.3 1,098.3 2.501.6 Reported Net Sales % Change 28% 9% 8% 33% 25% 28% 16% 25% 18% 33% 25% Constant-currency Net Sales % Change 27% 9% 8% 33% 24% 27% 15% 17% 33% 24% COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K 11 in millions, except for percentages and besi points) Gross profit Gross margin 2021 1,612.5 $ 51.6% in ons except for percentages and bass points) Selling, general and administrative expenses Selling, general and administrative expenses as percent of net sales Year Ended December 31, 2020 1.223.9 $ 48.9% 2021 1,160.3 37.8% 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. Change 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, 2020 $ 388.6 270 bps 1,098.9 43.9% 32% Change 814 -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 ign wet sales by geographic segment are summarized in the following tacie in millions, except for percentage changes) JS. AAP EMEA Canada in millions) U.S LAAP EMEA Canada Reported Net Sales 2021 Total segment operating income Unallocated corporate expenses Operating income Adjust for Foreign Currency Translation 2.060.3 465.5 (7.5) 382.1 (9.0) 218.5 (12.8) 3,126.4 $ (293) S Constant-cumency 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: S Year Ended December 31, Constant-currency Net Sales 2021 $ 2,060.3 S 458.0 373.1 205.7 3,097.1 $ 2021 Reported Net Sales 2020 536.5 420 1,603.8 424.5 298.9 174.4 2.501.6 Reported Net Sales % Change 28% 10% 28% 25% 25% Year Ended December 31, 2020 $ 65.5 52.7 696.7 (2462) 450.5 $ 250.5 $ 35.9 31.2 37.6 355.2 (2182) 137.0 $ Constant-currency Net Sales % Change 28% 8% 25% 18% 24% Close Change 286.0 6.1 34.3 15.1 341.5 (28.0) 313.5 COLUMBIA SPORTSWEAR COMPANY | 2021 FORM 10-K 126 u Cash Flow Activities Cash flows from continuing operations are summarized in the following table On milions Cash and cash equivalents Net cash provided by (used in) Operating activities Investing activities Financing activities Net effect of exchange rate changes on cash Net increase (decrease) in cash and cash equivalents $ 2021 Year Ended December 31, 2020 763.4 $ 354.4 $ (163.8) (210.9) (7.0) (27.3) S 790.7 $ 276.1 S (272) (151.7) 7.5 104.7 $ Close Change (273) 78.3 (136.6) (59.2) (14.5) (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 labilities. 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 retum 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 2000, 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 mmon stock of StAR & milline and dildand armente in now chochriders of CEO & milline artists and be made the contraster in elkhead manesin S 10. 11. 12. Columbia's Fiscal Year 2021 balance sheet shows Accounts Receivable of $ 487,803, which represents the amount the company actually expects to collect from its customers. What is the company's estimate of the amount of receivables that will NOT be collected? (That is, what is the allowance for uncollectible accounts?) Columbia's Fiscal Year 2021 balance sheet shows Inventories of $ 645,379. According to Note 2, what inventory cost flow method does Columbia use to report inventory cost? What depreciation method does Columbia use for financial reporting for its Property, plant, and equipment? (See Note 2) Columbia's Fiscal Year 2021 balance sheet reports Property, plant, and equipment, net - $291,088. According to Note 5, what is the largest component of PP&E? How much is the company's accumulated depreciation as of December 31, 2021