Columbia Sportswear 2010 Annual Report Download - page 11

development and production advancements rather than our ability to secure patents. The technologies, processes
and designs described in issued patents are incorporated into many of our most important products and expire at
various times. We vigorously protect these proprietary rights against counterfeit reproductions and other
infringing activities. Additionally, we license our Columbia trademarks across a range of apparel, footwear,
accessories and equipment.
Sales and Distribution
We sell our products through a mix of wholesale distribution channels, independent distributors, our own
direct-to-consumer channels and licensees. The majority of our sales are generated through wholesale channels
which include small, independently operated specialty outdoor and sporting goods stores, regional, national and
international sporting goods chains, and large regional, national and international department store chains. We
sell our products to independent distributors in various countries where we generally do not have direct sales
operations.
We sell our products directly to consumers through our own network of branded and outlet retail stores in
each of our geographic segments, and online operations in the United States and LAAP segments, with additional
e-commerce sites in other geographic markets planned for 2011. Our direct-to-consumer operations are designed
to elevate consumer perception of our brands, increase consumer and retailer awareness of and demand for our
products, model compelling retail environments for our products and build stronger emotional brand connections
with consumers over time. Our branded retail stores allow us to showcase a broad selection of products and to
support the brand’s positioning with fixtures and imagery that may then be replicated and offered for use by our
wholesale customers. These stores provide high visibility for our brands and products and help us to monitor the
needs and preferences of consumers. In addition, we operate outlet stores, which serve an important role in our
overall inventory management by allowing us to sell a significant portion of excess, discontinued and
out-of-season products while maintaining the integrity of our brands. E-commerce sales are a small but growing
portion of our total direct-to-consumer sales.
We operate in four geographic segments: (1) United States, (2) Latin America and Asia Pacific (“LAAP”),
(3) Europe, Middle East and Africa (“EMEA”), and (4) Canada, which are reflective of our internal organization,
management, and oversight structure. Each geographic segment operates predominantly in one industry: the
design, development, marketing and distribution of active outdoor apparel, including outerwear, sportswear,
footwear and accessories and equipment. The following table presents net sales to unrelated entities and
approximate percentages of net sales by geographic segment for each of the last three years (dollars in millions):
2010 2009 2008
Net Sales % of Sales Net Sales % of Sales Net Sales % of Sales
United States ........................... $ 881.0 59.4% $ 736.9 59.2% $ 727.7 55.2%
LAAP ................................. 263.4 17.7 203.2 16.3 198.2 15.0
EMEA ................................ 222.4 15.0 197.4 15.9 267.2 20.3
Canada ................................ 116.7 7.9 106.5 8.6 124.7 9.5
Total .............................. $1,483.5 100.0% $1,244.0 100.0% $1,317.8 100.0%
United States
The United States accounted for 59.4% of our net sales for 2010. We sell our products in the United States
to approximately 3,500 wholesale customers and through our own direct-to-consumer channels. As of
December 31, 2010, we operated 41 outlet retail stores and 8 branded retail stores in various locations in the
United States as well as three e-commerce websites, www.columbia.com, www.mountainhardwear.com and
www.sorel.com. We plan to begin selling our Montrail products online in the United States in early 2011. In
addition, we earn licensing income in the United States based on our licensees’ sale of licensed products.
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