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<br /> ANNUAL REPORT<br /> 2015<br /> TO SHAREHOLDERS<br /> Dear Fellow Shareholders:<br /> 2015 was an outstanding year for Columbia<br /> Sportswear Company — one that finished better than<br /> our own high expectations, despite unseasonably<br /> warm weather, macroeconomic challenges and<br /> currency headwinds in many of our key markets.<br /> Our long-term financial objectives are to drive<br /> sustainable, profitable sales growth that will result in<br /> expanded gross margins, increased funds to invest<br /> in demand-creation efforts behind our portfolio<br /> of brands, and improved operating margins.<br /> That’s exactly what we did in 2014, and again in 2015.<br /> Global net sales grew $226 million in 2015 to a<br /> record $2.33 billion, up 11 percent in U.S. dollars<br /> and 15 percent in constant-currency, including:<br /> • Constant-currency growth of 10 percent from the<br /> Columbia brand, 34 percent growth from SOREL,<br /> <a title="Columbia Sportswear Company 2015 Annual Report page 1" href="http://viewer.zmags.com/publication/01353822?page=1"> ANNUAL REPORT 2015 TO SHAREHOLDERS</a> <a title="Columbia Sportswear Company 2015 Annual Report page 2" href="http://viewer.zmags.com/publication/01353822?page=2"> Dear Fellow Shareholders: 2015 was an outstanding</a> <a title="Columbia Sportswear Company 2015 Annual Report page 3" href="http://viewer.zmags.com/publication/01353822?page=3"> The Columbia brand’s success ultimately hinges on</a> <a title="Columbia Sportswear Company 2015 Annual Report page 4" href="http://viewer.zmags.com/publication/01353822?page=4"> Columbia remains committed to supporting the Inte</a> <a title="Columbia Sportswear Company 2015 Annual Report page 5" href="http://viewer.zmags.com/publication/01353822?page=5"> and supporting them with versatile, high- quality</a> <a title="Columbia Sportswear Company 2015 Annual Report page 6" href="http://viewer.zmags.com/publication/01353822?page=6"> UNITED STATES SEC</a> <a title="Columbia Sportswear Company 2015 Annual Report page 7" href="http://viewer.zmags.com/publication/01353822?page=7"> COLUMBIA SPORTSWEAR COMPANY DECEMBER 31, 2015 TAB</a> <a title="Columbia Sportswear Company 2015 Annual Report page 8" href="http://viewer.zmags.com/publication/01353822?page=8"> PART I Item 1. BUSINESS General Fou</a> <a title="Columbia Sportswear Company 2015 Annual Report page 9" href="http://viewer.zmags.com/publication/01353822?page=9"> Consumer desire for our products is aff</a> <a title="Columbia Sportswear Company 2015 Annual Report page 10" href="http://viewer.zmags.com/publication/01353822?page=10"> Footwear We design, develop, market and </a> <a title="Columbia Sportswear Company 2015 Annual Report page 11" href="http://viewer.zmags.com/publication/01353822?page=11"> consumers over time. Our branded retail stores an</a> <a title="Columbia Sportswear Company 2015 Annual Report page 12" href="http://viewer.zmags.com/publication/01353822?page=12"> that we control, the joint venture's operations a</a> <a title="Columbia Sportswear Company 2015 Annual Report page 13" href="http://viewer.zmags.com/publication/01353822?page=13"> We design, develop, market and distribute</a> <a title="Columbia Sportswear Company 2015 Annual Report page 14" href="http://viewer.zmags.com/publication/01353822?page=14"> Sourcing and Manufacturing We do no</a> <a title="Columbia Sportswear Company 2015 Annual Report page 15" href="http://viewer.zmags.com/publication/01353822?page=15"> Government Regulation Many of our inte</a> <a title="Columbia Sportswear Company 2015 Annual Report page 16" href="http://viewer.zmags.com/publication/01353822?page=16"> which we acquired in May 2014. These business ini</a> <a title="Columbia Sportswear Company 2015 Annual Report page 17" href="http://viewer.zmags.com/publication/01353822?page=17"> third-party systems that interface with our new E</a> <a title="Columbia Sportswear Company 2015 Annual Report page 18" href="http://viewer.zmags.com/publication/01353822?page=18"> due to industrial accidents, the manufacturer may</a> <a title="Columbia Sportswear Company 2015 Annual Report page 19" href="http://viewer.zmags.com/publication/01353822?page=19"> The majority of our purchases of finished </a> <a title="Columbia Sportswear Company 2015 Annual Report page 20" href="http://viewer.zmags.com/publication/01353822?page=20"> met in order to retain the distribution rights, t</a> <a title="Columbia Sportswear Company 2015 Annual Report page 21" href="http://viewer.zmags.com/publication/01353822?page=21"> significant increase in the volume of order cance</a> <a title="Columbia Sportswear Company 2015 Annual Report page 22" href="http://viewer.zmags.com/publication/01353822?page=22"> · Our ability to effectively operate the joi</a> <a title="Columbia Sportswear Company 2015 Annual Report page 23" href="http://viewer.zmags.com/publication/01353822?page=23"> and penalties for prior periods and higher tax ra</a> <a title="Columbia Sportswear Company 2015 Annual Report page 24" href="http://viewer.zmags.com/publication/01353822?page=24"> and sales declines and reduced profitability, whi</a> <a title="Columbia Sportswear Company 2015 Annual Report page 25" href="http://viewer.zmags.com/publication/01353822?page=25"> fail to anticipate and respond to consumer prefer</a> <a title="Columbia Sportswear Company 2015 Annual Report page 26" href="http://viewer.zmags.com/publication/01353822?page=26"> supporting our traditional wholesale business, ou</a> <a title="Columbia Sportswear Company 2015 Annual Report page 27" href="http://viewer.zmags.com/publication/01353822?page=27"> Our business is affected by the general</a> <a title="Columbia Sportswear Company 2015 Annual Report page 28" href="http://viewer.zmags.com/publication/01353822?page=28"> Corporate Headquarters: Portland, Oregon (</a> <a title="Columbia Sportswear Company 2015 Annual Report page 29" href="http://viewer.zmags.com/publication/01353822?page=29"> Name Age </a> <a title="Columbia Sportswear Company 2015 Annual Report page 30" href="http://viewer.zmags.com/publication/01353822?page=30"> Oregon Governor's office from January 2003 throug</a> <a title="Columbia Sportswear Company 2015 Annual Report page 31" href="http://viewer.zmags.com/publication/01353822?page=31"> Richelle T. Luther joined Columbia S</a> <a title="Columbia Sportswear Company 2015 Annual Report page 32" href="http://viewer.zmags.com/publication/01353822?page=32"> PART II Item 5. MARKET FOR REGISTRANT'S COMM</a> <a title="Columbia Sportswear Company 2015 Annual Report page 33" href="http://viewer.zmags.com/publication/01353822?page=33"> Columbia Sportswear Company </a> <a title="Columbia Sportswear Company 2015 Annual Report page 34" href="http://viewer.zmags.com/publication/01353822?page=34"> Item 6. SELECTED FINANCIAL DATA Selected Cons</a> <a title="Columbia Sportswear Company 2015 Annual Report page 35" href="http://viewer.zmags.com/publication/01353822?page=35"> Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS </a> <a title="Columbia Sportswear Company 2015 Annual Report page 36" href="http://viewer.zmags.com/publication/01353822?page=36"> On January 1, 2014 we commenced operations</a> <a title="Columbia Sportswear Company 2015 Annual Report page 37" href="http://viewer.zmags.com/publication/01353822?page=37"> Results of Operations The following</a> <a title="Columbia Sportswear Company 2015 Annual Report page 38" href="http://viewer.zmags.com/publication/01353822?page=38"> Net sales by geographic region are summarized in </a> <a title="Columbia Sportswear Company 2015 Annual Report page 39" href="http://viewer.zmags.com/publication/01353822?page=39"> Sales by Brand Net sales by brand are summarized </a> <a title="Columbia Sportswear Company 2015 Annual Report page 40" href="http://viewer.zmags.com/publication/01353822?page=40"> · Unfavorable foreign currency hedge rates; an</a> <a title="Columbia Sportswear Company 2015 Annual Report page 41" href="http://viewer.zmags.com/publication/01353822?page=41"> Sales by Geographic Region Net sales by</a> <a title="Columbia Sportswear Company 2015 Annual Report page 42" href="http://viewer.zmags.com/publication/01353822?page=42"> Sales by Brand Net sales by brand are summarized </a> <a title="Columbia Sportswear Company 2015 Annual Report page 43" href="http://viewer.zmags.com/publication/01353822?page=43"> · The effect of including in gross profit amou</a> <a title="Columbia Sportswear Company 2015 Annual Report page 44" href="http://viewer.zmags.com/publication/01353822?page=44"> 2015 compared to 2014 Net cash </a> <a title="Columbia Sportswear Company 2015 Annual Report page 45" href="http://viewer.zmags.com/publication/01353822?page=45"> factors, including prevailing market conditions, </a> <a title="Columbia Sportswear Company 2015 Annual Report page 46" href="http://viewer.zmags.com/publication/01353822?page=46"> have resulted in the net fair value declining by </a> <a title="Columbia Sportswear Company 2015 Annual Report page 47" href="http://viewer.zmags.com/publication/01353822?page=47"> Continued uncertainty in credit and market condit</a> <a title="Columbia Sportswear Company 2015 Annual Report page 48" href="http://viewer.zmags.com/publication/01353822?page=48"> Acquisition Accounting We account f</a> <a title="Columbia Sportswear Company 2015 Annual Report page 49" href="http://viewer.zmags.com/publication/01353822?page=49"> Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE</a> <a title="Columbia Sportswear Company 2015 Annual Report page 50" href="http://viewer.zmags.com/publication/01353822?page=50"> Report of Independent Registered Public Accountin</a> <a title="Columbia Sportswear Company 2015 Annual Report page 51" href="http://viewer.zmags.com/publication/01353822?page=51"> COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED BALANCE</a> <a title="Columbia Sportswear Company 2015 Annual Report page 52" href="http://viewer.zmags.com/publication/01353822?page=52"> COLUMBIA SPORTSWEAR COMPANY CONSOL</a> <a title="Columbia Sportswear Company 2015 Annual Report page 53" href="http://viewer.zmags.com/publication/01353822?page=53"> COLUMBIA SPOR</a> <a title="Columbia Sportswear Company 2015 Annual Report page 54" href="http://viewer.zmags.com/publication/01353822?page=54"> COLUMBIA SPORTSWEAR COMPANY CONSO</a> <a title="Columbia Sportswear Company 2015 Annual Report page 55" href="http://viewer.zmags.com/publication/01353822?page=55"> COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED S</a> <a title="Columbia Sportswear Company 2015 Annual Report page 56" href="http://viewer.zmags.com/publication/01353822?page=56"> COLUMBIA SPORTSWEAR COMPANY NOTES TO CONSOLIDATED</a> <a title="Columbia Sportswear Company 2015 Annual Report page 57" href="http://viewer.zmags.com/publication/01353822?page=57"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 58" href="http://viewer.zmags.com/publication/01353822?page=58"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 59" href="http://viewer.zmags.com/publication/01353822?page=59"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 60" href="http://viewer.zmags.com/publication/01353822?page=60"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 61" href="http://viewer.zmags.com/publication/01353822?page=61"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 62" href="http://viewer.zmags.com/publication/01353822?page=62"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 63" href="http://viewer.zmags.com/publication/01353822?page=63"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 64" href="http://viewer.zmags.com/publication/01353822?page=64"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 65" href="http://viewer.zmags.com/publication/01353822?page=65"> </a> <a title="Columbia Sportswear Company 2015 Annual Report page 66" href="http://viewer.zmags.com/publication/01353822?page=66"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 67" href="http://viewer.zmags.com/publication/01353822?page=67"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 68" href="http://viewer.zmags.com/publication/01353822?page=68"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 69" href="http://viewer.zmags.com/publication/01353822?page=69"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 70" href="http://viewer.zmags.com/publication/01353822?page=70"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 71" href="http://viewer.zmags.com/publication/01353822?page=71"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 72" href="http://viewer.zmags.com/publication/01353822?page=72"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 73" href="http://viewer.zmags.com/publication/01353822?page=73"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 74" href="http://viewer.zmags.com/publication/01353822?page=74"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 75" href="http://viewer.zmags.com/publication/01353822?page=75"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 76" href="http://viewer.zmags.com/publication/01353822?page=76"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 77" href="http://viewer.zmags.com/publication/01353822?page=77"> COLUMBIA SPORTSWEAR COMPANY NOTES TO CONSOLIDATED</a> <a title="Columbia Sportswear Company 2015 Annual Report page 78" href="http://viewer.zmags.com/publication/01353822?page=78"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 79" href="http://viewer.zmags.com/publication/01353822?page=79"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 80" href="http://viewer.zmags.com/publication/01353822?page=80"> COLUMBI</a> <a title="Columbia Sportswear Company 2015 Annual Report page 81" href="http://viewer.zmags.com/publication/01353822?page=81"> SUPPLEMENTARY DATA—QUARTERLY FINANCIAL DATA (Unau</a> <a title="Columbia Sportswear Company 2015 Annual Report page 82" href="http://viewer.zmags.com/publication/01353822?page=82"> Based on our assessment we believe that, as of De</a> <a title="Columbia Sportswear Company 2015 Annual Report page 83" href="http://viewer.zmags.com/publication/01353822?page=83"> Report of Independent Registered Public Accountin</a> <a title="Columbia Sportswear Company 2015 Annual Report page 84" href="http://viewer.zmags.com/publication/01353822?page=84"> Item 9B. OTHER INFORMATION None. </a> <a title="Columbia Sportswear Company 2015 Annual Report page 85" href="http://viewer.zmags.com/publication/01353822?page=85"> PART III Item 10. DIRECTORS, EXECUTIVE OFFICER</a> <a title="Columbia Sportswear Company 2015 Annual Report page 86" href="http://viewer.zmags.com/publication/01353822?page=86"> Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES</a> <a title="Columbia Sportswear Company 2015 Annual Report page 87" href="http://viewer.zmags.com/publication/01353822?page=87"> PART IV Item 15. EXHIBITS AND FINANCIAL STATEM</a> <a title="Columbia Sportswear Company 2015 Annual Report page 88" href="http://viewer.zmags.com/publication/01353822?page=88"> SIGNATURES Pursuant to the require</a> <a title="Columbia Sportswear Company 2015 Annual Report page 89" href="http://viewer.zmags.com/publication/01353822?page=89"> EXHIBIT INDEX In reviewing the agreements</a> <a title="Columbia Sportswear Company 2015 Annual Report page 90" href="http://viewer.zmags.com/publication/01353822?page=90"> Exhibit No. Exhibit Name + 10.2 </a> <a title="Columbia Sportswear Company 2015 Annual Report page 91" href="http://viewer.zmags.com/publication/01353822?page=91"> Exhibit No. Exhibit Name 10.5</a>