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Business Acquisition Business Acquisition | 9 Months Ended
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Sep. 30, 2014
Business Combinations [Abstract] |
Business Acquisition | BUSINESS ACQUISITION On May 30, 2014, the Company purchased 100% of the equity interest in prAna Living LLC (“prAna”) for $188,467,000 net of acquired cash of $4,946,000. PrAna is a lifestyle apparel brand sold through approximately 1,400 select specialty and online retailers across North America, as well as through five company-owned retail stores, an e-commerce site and direct-mail catalogs. The acquisition of prAna strengthens and diversifies the Company's brand portfolio and generally offsets some of the more seasonal sales effects found within existing Columbia brands. The acquisition was funded with cash on hand. PrAna contributed net sales of $33,655,000 and net loss, including amortization of acquired assets, of $443,000 to the Company from May 31, 2014 to September 30, 2014. In addition, the Company incurred transaction costs of $3,382,000 during the nine months ended September 30, 2014. These acquisition and integration costs are included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2014. Purchase price allocation Acquired assets and liabilities were recorded at estimated fair value as of the acquisition date. The excess of the purchase price over the estimated fair value of identifiable net assets resulted in the recognition of goodwill of $54,156,000, all of which was assigned to the United States segment, and is attributable to future growth opportunities and any intangible assets that did not qualify for separate recognition. The goodwill is expected to be deductible for tax purposes. The following table summarizes the preliminary estimated fair value of the net assets acquired and liabilities assumed and measurement period adjustments since May 30, 2014, the acquisition date (in thousands):
|  | Initial valuation at May 30, 2014 |  | Measurement period adjustments |  | Adjusted preliminary valuation at September 30, 2014
Cash |  | $ | 4,946 |  |  | $ | — |  |  | $ | 4,946 |
Accounts receivable |  | 10,021 |  |  | — |  |  | 10,021 |
Inventories |  | 9,641 |  |  | — |  |  | 9,641 |
Other current assets |  | 2,229 |  |  | 302 |  |  | 2,531 |
Property, plant and equipment |  | 5,192 |  |  | — |  |  | 5,192 |
Acquired intangible assets |  | 114,500 |  |  | — |  |  | 114,500 |
Other non-current assets |  | 258 |  |  | — |  |  | 258 |
Total assets acquired |  | 146,787 |  |  | 302 |  |  | 147,089 |
Accounts payable |  | 2,803 |  |  | — |  |  | 2,803 |
Other current liabilities |  | 5,390 |  |  | (361 | ) |  | 5,029 |
Total liabilities assumed |  | 8,193 |  |  | (361 | ) |  | 7,832 |
Net identifiable assets acquired |  | 138,594 |  |  | 663 |  |  | 139,257 |
Goodwill |  | 54,819 |  |  | (663 | ) |  | 54,156 |
Net assets acquired |  | $ | 193,413 |  |  | $ | — |  |  | $ | 193,413 |
The allocation of the purchase price is preliminary and is based upon valuation information available and estimates and assumptions made at September 30, 2014. The Company is still in the process of verifying data and finalizing information related to the valuation and recording of property, plant and equipment, identified intangible assets, accrued liabilities and the resulting effects on the amount of recognized goodwill. The following table sets forth the components of identifiable intangible assets and their estimated useful lives as of May 30, 2014, the acquisition date (in thousands, except for estimated useful lives, in years):
|  | Estimated fair value |  | Estimated useful life, in years
Trade name |  | $ | 88,000 |  |  | Indefinite
Customer relationships |  | 23,000 |  |  | 3-10 years
Order backlog |  | 3,500 |  |  | Less than 1 year
Total |  | $ | 114,500 |  |  |
At the time of acquisition, the value of acquired inventory was increased by $1,600,000 based on its estimated fair value. This valuation adjustment was charged to cost of sales in the second and third quarters of 2014. Summary of Unaudited Pro forma Information The following table reflects the unaudited pro forma consolidated results of operations for the periods presented, as though the acquisition of prAna had occurred on January 1, 2013 (in thousands):
|  | (Unaudited)
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2014 |  | 2013 |  | 2014 |  | 2013
Net sales |  | $ | 675,296 |  |  | $ | 546,676 |  |  | $ | 1,467,059 |  |  | $ | 1,218,100 |
Net income attributable to Columbia Sportswear Company |  | 67,492 |  |  | 56,175 |  |  | 89,146 |  |  | 58,765 |
Earnings per share attributable to Columbia Sportswear Company: |  |  |  |  |  |  |  |
Basic |  | $ | 0.96 |  |  | $ | 0.82 |  |  | $ | 1.28 |  |  | $ | 0.86 |
Diluted |  | 0.95 |  |  | 0.81 |  |  | 1.26 |  |  | 0.85 |
The unaudited pro forma financial information is presented for illustrative purposes only and is not indicative of the results of operations that would have been realized if the acquisition had been completed on the date indicated, nor is it indicative of future operating results. The unaudited pro forma consolidated net income includes differences in the amount and timing of amortization of acquired intangible assets and the fair value adjustment for acquired inventory. As a result, under the assumed pro forma acquisition date of January 1, 2013, net income for the nine months ended September 30, 2014 and 2013 includes pre-tax purchase accounting amortization of $2,863,000 and $7,963,000, respectively. The pro forma net income attributable to the Company excludes nonrecurring transaction costs of $3,382,000. The pro forma results also do not include, among other items, the effects of anticipated synergies from combining the two companies or differences in the combined Company's operating cost structure.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1383-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6996-128479 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4922-128472 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4934-128472 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7000-128479 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1486-128463 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1497-128463 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1490-128463 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1500-128463 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1524-128463 + Details
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