Columbia Sportswear 2012 Annual Report Download - page 8

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4
our trademarks are an important factor in creating a market for our products, in identifying our Company, and in differentiating
our products from competitors’ products. We have design, process and utility patents as well as pending patent applications
in the United States and other nations. We file applications for United States and foreign patents for inventions, designs
and improvements that we believe have commercial value; however, these patents may or may not ultimately be issued or
used in our business. We believe our success primarily depends on our ability to continue offering innovative solutions to
consumer needs through design, research, development and production advancements rather than our ability to secure
patents. The technologies, processes and designs described in our 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, our own direct-to-consumer channels,
independent distributors 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 and online in
each of our geographic segments. Our direct-to-consumer operations are designed to elevate consumer perception of our
brands, manage inventory, 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 and e-commerce sites 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 and
sites 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.
We operate in four geographic segments: (1) the 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, footwear, 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):
2012 2011 2010
Net Sales % of Sales Net Sales % of Sales Net Sales % of Sales
United States. . . . . . . . . . . . . . . . . . . $ 946.7 56.7% $ 948.0 56.0% $ 881.0 59.4%
LAAP . . . . . . . . . . . . . . . . . . . . . . . . 377.6 22.6 341.0 20.1 263.4 17.7
EMEA . . . . . . . . . . . . . . . . . . . . . . . . 230.6 13.8 275.4 16.3 222.4 15.0
Canada . . . . . . . . . . . . . . . . . . . . . . . 114.7 6.9 129.6 7.6 116.7 7.9
Total. . . . . . . . . . . . . . . . . . . . . $ 1,669.6 100.0% $ 1,694.0 100.0% $ 1,483.5 100.0%
United States
The United States accounted for 56.7% of our net sales for 2012. We sell our products in the United States to
approximately 3,400 wholesale customers and through our own direct-to-consumer channels. As of December 31, 2012,
we operated 55 outlet retail stores and 8 branded retail stores in various locations in the United States. We also sell Columbia,
Mountain Hardwear, Sorel and Montrail products through e-commerce websites. In addition, we earn licensing income in
the United States based on our licensees’ sale of licensed products.
We distribute the majority of our products sold in the United States from distribution centers that we own and operate
in Portland, Oregon and Robards, Kentucky. In some instances, we arrange to have products shipped from the independent