210 Financial Analysis Purpose: To help familiarize you with the financial reporting of a real company in order to further your understanding of the chapter material. This case uses both the income statement (statement of operations) and the balance sheet of Columbia Sportswear in Appendix A at the end of the book. Requirements 1. What income statement format does Columbia Sportswear use? How can you tell? 2. Calculate the gross profit percentage for Columbia Sportswear for 2014, 2015, and 2016. Did the gross profit percentage improve or deteriorate over those years? 3. Calculate the net income percentage for Columbia Sportswear for 2014, 2015, and 2016. Did the net income percentage improve or deteriorate? 4. Does Columbia Sportswear report a classified balance sheet? How can you tell? Current Assets: 2016 ASSETS December 31, 2015 Cash and cash equivalents.... Short-term investments.. Accounts receivable, net (Note 5).. Inventories...... 551,389 $ 369,770 472 629 333,678 371,953 487,997 473,637 Prepaid expenses and other current assets. 38,487 33,400 Total current assets... 1,412,023 1,249,389 Property, plant, and equipment, net (Note 6). 279,650 291,687 Intangible assets, net (Note 7) 133,438 138,584 Goodwill (Note 7)........ 68,594 68,594 Deferred income taxes (Note 10). 92,494 76,181 Other non-current assets.. 27,695 21,718 Total assets.... $2,013,894 $ 1,846,153 LIABILITIES AND EQUITY Current Liabilities: Short-term borrowings (Note 8) Accounts payable.. Accrued liabilities (Note 9).. Income taxes payable (Note 10) Total current liabilities.... Note payable to related party (Note 22) Other long-term liabilities (Notes 11, 12). Income taxes payable (Note 10). Deferred income taxes (Note 10) Total liabilities..... Commitments and contingencies (Note 13) Shareholders' Equity: Preferred stock; 10,000 shares authorized; none issued and outstanding..... Common stock (no par value); 250,000 shares authorized; 69,873 and 69,277 issued and outstanding (Note 14) Retained earnings 1,940 215,048 217,230 142,158 141,862 5,645 5,038 362,851 366,070 14,053 15,030 42,622 40,172 12,710 8,839 147 229 432,383 430,340 53,801 34,776 1,529,636 1,385,860 Dodwill (Note 7)....... eferred income taxes (Note 10). 68,594 68,594 92,494 76,181 her non-current assets.. 27,695 21,718 Total assets..... $2,013,894 $ 1,846,153 LIABILITIES AND EQUITY urrent Liabilities: Short-term borrowings (Note 8) Accounts payable..... Accrued liabilities (Note 9). Income taxes payable (Note 10) Total current liabilities. Note payable to related party (Note 22) Other long-term liabilities (Notes 11, 12). Income taxes payable (Note 10). Deferred income taxes (Note 10) Total liabilities.... 1,940 215,048 217,230 142,158 141,862 5,645 5,038 362,851 366,070 14,053 15,030 42,622 40,172 12,710 8,839 147 229 432,383 430,340 Commitments and contingencies (Note 13) Shareholders' Equity: Preferred stock; 10,000 shares authorized; none issued and outstanding.. Common stock (no par value); 250,000 shares authorized; 69,873 and 69,277 issued and outstanding (Note 14) Retained earnings Accumulated other comprehensive loss (Note 17) Total Columbia Sportswear Company shareholders' equity Non-controlling interest (Note 4). Total equity.... Total liabilities and equity 53,801 34,776 1,529,636 1,385,860 (22,617) (20,836) 1,560,820 1,399,800 20,691 1,581,511 $ 2,013,894 $ 1,846,153 16,013 1,415,813 CONSOLIDATED STATEMENTS OF OPERATIONS (n thousands, except per share amounts) 2016 Year Ended December 31, 2015 2014 $ 2,377,045 $ 2,326,180 $2,100,590 Net sales Cost of sales Gross profit. Selling, general and administrative expenses. Net licensing income... Income from operations Interest income, net... Interest expense on note payable to related party (Note 22). Other non-operating expense Income before income tax. Income tax expense (Note 10) 1,266,697 1,252,680 1,145,639 1,110,348 1,073,500 954,951 864,084 831,971 763,063 10,244 8,192 6,956 256,508 249,721 198,844 2,003 1,531 1,004 (1,041) (1,099) (1,053) (572) (2,834) (274) 256.898 247,319 198,521 (58,459) (67,468) (56,662) 198,439 179,851 141,859 6,541 5,514 4,686 Net income Net income attributable to non-controlling interest Net income attributable to Columbia Sportswear Company Earnings per share attributable to Columbia Sportswear Company (Note 16): Basic... Diluted Weighted average shares outstanding (Note 16): S 191,898 S 174,337 S 137,173 2.75 S 2.72 2.48 S 1.97 2.45 1.94 Basic. Diluted See accompanying notes to consolidated financial statements 69,683 70,162 69,807 70,632 71,064 70,681