APPENDIX B
APPENDIX C
Based on the information in these financial statements, compute the 2016 return on common stockholders' equity, debt to assets ratio, and return on assets for each company. (Round answers to 1 decimal places, e.g. 15.2%.) Columbia Sportswear Company VF Corporation Return on common stockholders' equity % % Debt to assets % % Return on assets % % (c) Compute the payout ratio for each company. (Round answers to 1 decimal places, e.g. 15.2%.) Columbia Sportswear Company VF Corporation Payout ratio % % Which pays out a higher percentage of its earnings? pays out a higher percentage of its earnings. COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year Ended December 31, 2016 2015 2014 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) 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): Basic. Diluted $ 2,377,045 $ 2,326,180 $ 2,100,590 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) (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 $ 191,898 $ 174,337 $ 137,173 (2,834) 2.75 $ 2.48 $ 2.45 1.97 1.94 2.72 69,683 70,632 70,162 71,064 69,807 70,681 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Year Ended December 31, 2016 2015 2014 $ 198,439 $ 179,851 $ 141,859 (2) (6) 10 843 (2,908) 7,751 Net income Other comprehensive loss: Unrealized holding gains (losses) on available-for-sale securities (net of tax effects of $0,($3), and ($5), respectively)...... Unrealized gains (losses) on derivative transactions (net of tax effects of ($1,922), ($849) and ($1,507), respectively)....... Foreign currency translation adjustments (net of tax effects of ($347), ($760) and $1,023, respectively). Other comprehensive loss... Comprehensive income... Comprehensive income attributable to non-controlling interest.... Comprehensive income attributable to Columbia Sportswear Company. (4,485) (34,887) (27,789) (3.644) (37,801) (20,028) 194,795 142,050 121,831 4,678 4,382 4,185 $ 190,117 $ 137,668 $ 117,646 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED BALANCE SHEETS (In thousands) December 31, 2016 2015 ASSETS $ 551,389 $ 369,770 472 629 333,678 371,953 487,997 473,637 38,487 33,400 1,412.023 1,249,389 279,650 291,687 133,438 138,584 68,594 68,594 92,494 76,181 27,695 21,718 $ 2,013,894 $ 1,846,153 Current Assets: Cash and cash equivalents.. Short-term investments. Accounts receivable, net (Note 5).. Inventories... Prepaid expenses and other current assets. Total current assets. Property, plant, and equipment, net (Note 6) Intangible assets, net (Note 7) Goodwill (Note 7).... Deferred income taxes (Note 10) Other non-current assets Total assets. 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 Accumulated other comprehensive loss (Note 17). Total Columbia Sportswear Company shareholders' equity Non-controlling interest (Note 4). Total equity. Total liabilities and equity 215,048 142,158 5.645 362.851 14.053 42.622 12.710 147 432.383 1,940 217,230 141,862 5,038 366,070 15,030 40,172 8,839 229 430,340 53,801 34,776 1,529,636 1,385,860 (22,617) (20,836) 1,560,820 1.399,800 20,691 16,013 1,581,511 1,415,813 2,013,894 $1,846,153 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2016 2015 2014 198,439 $ 179,851 $ 141,859 60,016 4,805 (19,178) 10,986 56,521 5,098 (11,709) 11,672 (7,873) 54,017 481 (6,978) 11,120 (4,927) 36,710 (18,777) (5,452) (5,948) 1,483 4,847 4,768 2,468 275,167 (40,419) (103,296) 4,411 (2,524) 11,418 (2,017) (10,994) 4,966 95,105 (31,478) (62,086) (4,869) 4,291 41,941 35,051 1,166 6,195 185,783 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: ........ Depreciation and amortization Loss on disposal or impairment of property, plant, and equipment. ... Deferred income taxes... Stock-based compensation.... Excess tax benefit from employee stock plans. Changes in operating assets and liabilities: Accounts receivable Inventories Prepaid expenses and other current assets Other assets. Accounts payable Accrued liabilities Income taxes payable Other liabilities Net cash provided by operating activities. Cash flows from investing activities: Acquisition of business, net of cash acquired Purchases of short-term investments Sales of short-term investments. Capital expenditures.. Proceeds from sale of property, plant, and equipment. Net cash used in investing activities Cash flows from financing activities: Proceeds from credit facilities. Repayments on credit facilities Proceeds from issuance of common stock under employee stock plans Tax payments related to restricted stock unit issuances. Excess tax benefit from employee stock plans Repurchase of common stock Cash dividends paid Proceeds from note payable to related party Net cash used in financing activities. Net effect of exchange rate changes on cash Net increase (decrease) in cash and cash equivalents. Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year. Supplemental disclosures of cash flow information: Cash paid during the year for income taxes.. Cash paid during the year for interest on note payable to related party .... Supplemental disclosures of non-cash investing activities: (21,263) 21,263 (49,987) 97 (49,890) (38,208) 64,980 (69.917) 144 (43,001) (188,467) (48,243) 112,895 (60,283) 71 (184,027) 62,885 (64,825) 13,167 (5,117) 53,429 (51,479) 17,442 (4,895) 7,873 (70,068) (43,547) (11) (48,122) 52,356 (52,205) 22,277 (3,141) 4,927 (15,000) (39,836) 16,072 (14,550) (11,137) (23,931) 437,489 413,558 (42,023) (1,635) 181.619 369,770 551,389 $ (91,245) (4,647) (43,788) 413,558 369.770 S 70,424 $ 1.049 87,350 $ 1,115 53,958 838 Supplemental disclosures of non-cash investing activities: Capital expenditures incurred but not yet paid 2,710 4,698 7,196 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF EQUITY (In thousands) Columbia Sportswear Company Shareholders' Equity Common Stock Accumulated Other Non- Shares Retained Comprehensive Controlling Outstanding Amount Earnings Income (Loss) Interest Total 69,190 $ 52,325 $1,157,733 $ 35,360 $ 7,446 $ 1,252,864 137,173 4.686 141,859 10 - 10 7,751 (27.288) (501) 7,751 (27,789) (39,836) (39,836) 1,059 11 19.136 5,119 11,120 (15,000) 72,700 19,136 5,119 11.120 (15,000) 1,355,234 179,851 (421) 69,828 15.833 1.255.070 174,337 11.631 5,514 (6) (6 (6) BALANCE, JANUARY 1, 2014 Net income....... Other comprehensive income (loss): Unrealized holding gains on available-for-sale securities, net ....... Unrealized holding gains on derivative transactions, net ...... Foreign currency translation adjustment, net.. Cash dividends ($0.57 per share). Issuance of common stock under employee stock plans, net .......... Tax adjustment from stock plans Stock-based compensation expense. Repurchase of common stock BALANCE, DECEMBER 31, 2014 Net income ....... Other comprehensive loss: Unrealized holding losses on available-for- sale securities, net........ Unrealized holding losses on derivative transactions, net .......... Foreign currency translation adjustment, net.. Cash dividends ($0.62 per share). Issuance of common stock under employee stock plans, net ......... Tax adjustment from stock plans Stock-based compensation expense Repurchase of common stock. BALANCE, DECEMBER 31, 2015 Net income Other comprehensive income (loss): Unrealized holding losses on available-for- sale securities, net... Unrealized holding gains on derivative transactions, Foreign currency translation adjustment, net.. Cash dividends ($0.69 per share). Issuance of common stock under employee stock plans, net Stock-based compensation expense Repurchase of common stock. BALANCE, DECEMBER 31, 2016 (2.908) (33,755) (1,132) (2,908) (34,887) (43,547) (43,547) 835 11 12.547 7.925 11,672 (70,068) 34.776 (1,386) 12.547 7.925 11,672 (70,068) 1,415,813 198,439 69.277 (20.836) 1,385,860 191,898 16.013 6,541 (2) (2) 686 (2,465) 157 (2,020) 843 (4,485) (48,122) (48,122) 596 8,050 10.986 (11) $ 53,801 $1,529,636 8,050 10.986 (11) $ 1,581,511 69,873 (22,617) $ 20,691 VF CORPORATION Consolidated Balance Sheets December 2016 2015 In thousands, except share amounts 1.227,862 $ 944,423 1,197,678 1,569,325 298.233 4.293.098 939,650 1.839,698 1,736,959 929,882 1,289,962 1,555,360 284,215 89,176 4,163,136 945,491 1.948.611 1,788,407 583,866 210,031 9,639,542 9,739,287 $ ASSETS Current assets Cash and equivalents s Accounts receivable, less allowance for doubtful accounts of $21,131 in 2016 and $23.275 in 2015 Inventories Other current assets Current assets of discontinued operations Total current assets Property, plant and equipment Intangible assets Goodwill Other assets Other assets of discontinued operations Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Short-term borrowings $ Current portion of long-term debt Accounts payable Accrued liabilities Current liabilities of discontinued operations Total current liabilities Long-term debt Other liabilities Other liabilities of discontinued operations Commitments and contingencies Total liabilities Stockholders' equity Preferred Stock, par value $1; shares authorized 25,000,000; no shares outstanding in 2016 and 2015 Common Stock, stated value $0.25; shares authorized, 1,200,000,000; 414,012,954 shares outstanding in 2016 and 426,614,274 shares outstanding in 2015 Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity S 26,029 $ 253,689 664,644 841,038 449,590 3,351 680,606 782,148 26,018 1,941,713 1,401,820 900,256 10,915 1,785,400 2,039,180 973,786 4,798,366 4.254,704 103,503 3,333,423 (1,041,463) 2,545,458 4,940,921 9,739,287 $ 106,654 3,192,675 (1,043,222) 3,128,731 5,384,838 9,639,542 See notes to consolidated financial statements. VF CORPORATION Consolidated Statements of Income 2014 $ Year Ended December 2016 2015 In thousands, except per share amounts 11,902,314 $ 11,909,635 $ 116,689 123,020 12,019,003 12,032,655 11,757,399 124,331 11,881,730 6,235,699 4,009,029 6,112.880 3.970,536 Net sales Royalty income Total revenues Costs and operating expenses Cost of goods sold Selling, general and administrative expenses Impairment of goodwill and intangible assets Total costs and operating expenses Operating income Interest income Interest expense Other income (expense), net Income from continuing operations before income taxes Income taxes Income from continuing operations Loss from discontinued operations, net of tax Net income Earnings per common share - basic Continuing operations Discontinued operations Total earnings per common share - basic Earnings per common share - diluted Continuing operations Discontinued operations Total earnings per common share - diluted Cash dividends per com ommon share 6,196,335 4,243,798 79,644 10,519,777 1,499,226 9,094 (94,730) 2,001 1,415,591 243,064 1,172,527 (98,421) 1,074,106 $ 10,244,728 1,787,927 7,152 (88,772) 1,028 1,707,335 392,204 1.315,131 (83,538) 1,231,593 $ 10,083,416 1,798,314 6,911 (86,104) (5,545) 1,713,576 385,827 1,327,749 (280,244) 1,047,505 $ $ 2.82 $ (0.24) 2.58 $ 3.09 $ (0.19) 2.90 $ 3.07 (0.65) 2.42 S S 2.78 $ (0.24) 2.54 $ 1.5300 $ 3.04 $ (0.19) 2.85 $ 1.3300 $ 3.02 (0.64) 2.38 1.1075 S $ See notes to consolidated financial statements. VF CORPORATION Consolidated Statements of Comprehensive Income 2014 Year Ended December 2016 2015 In thousands 1,074,106 $ 1,231,593 $ $ 1,047,505 (52,028) (24,382) (361,814) 586 (469,663) 6,075 (5,384) 65.212 2,584 50,922 (43,836) (62,556) 61.966 3,038 4,062 (1,571) (203,234) 37,518 5,445 60,588 Net income Other comprehensive income (loss) Foreign currency translation and other Gains (losses) arising during year Less income tax effect Defined benefit pension plans Current year actuarial gains (losses) and plan amendments Amortization of net deferred actuarial losses Amortization of deferred prior service costs Reclassification of net actuarial loss from settlement charge Less income tax effect Derivative financial instruments Gains (losses) arising during year Less income tax effect Reclassification to net income for (gains) losses realized Less income tax effect Marketable securities Gains (losses) arising during year Less income tax effect Reclassification to net income for (gains) losses realized Less income tax effect Other comprehensive income (loss) Comprehensive income 90,708 (9.672) (107,457) 35,092 89,993 (34.668) (64,976) 25,404 88,387 (34,736) 32,111 (12.619) (698) 274 495 (195) (1,177) 463 (340,950) 890,643 $ 1.759 1,075,865 $ (490,552) 556,953 $ See notes to consolidated financial statements. VF CORPORATION Consolidated Statements of Cash Flows 2016 Year Ended December 2015 In thousands 2014 S 1,074,106 $ 1.231,593 $ 1,047,505 79,644 281,577 67,762 17,283 89,005 (71,625) 104,357 (15,232) 143,562 272.075 73,420 12.006 (208,709) 7,088 396,362 274,883 104,313 (2,198) (9,864) (78,064) (34,784) 4,112 47,102 (37,210) (9,553) (129,574) 28.904 (48,627) 1,477,919 (124,248) (175,098) 225 4,206 (14,505) 2.599 1,203,430 854 (130,540) 69,807 20,293 41,989 22,614 1,762,066 Operating activities Net income Adjustments to reconcile net income to cash provided by operating activities: Impairment of goodwill and intangible assets Depreciation and amortization Stock-based compensation Provision for doubtful accounts Pension expense in excess of (less than) contributions Deferred income taxes Loss on sale of businesses Other, net Changes in operating assets and liabilities: Accounts receivable Inventories Accounts payable Income taxes Accrued liabilities Other assets and liabilities Cash provided by operating activities Investing activities Capital expenditures Proceeds from sale of businesses, net of cash sold Software purchases Other, net Cash used by investing activities Financing activities Net (decrease) increase in short-term borrowings Payments on long-term debt Payment of debt issuance costs Proceeds from long-term debt Purchases of treasury stock Cash dividends paid Proceeds from issuance of Common Stock, net of shares withheld for taxes Cash used by financing activities Effect of foreign currency rate changes on cash and equivalents Net change in cash and equivalents Cash and equivalents beginning of year) Cash and equivalents - end of year (a) (254,501) (234,077) (175,840) 115.983 (44,226) (8,331) (112,414) (63,283) (5,038) (322.822) (67,943) (27,235) (329,255) 4,761 432,262 (3,975) (1,475) (4,760) (421,069) (13,276) (6,807) 951,817 (1,000,468) (635,994) (732,623) (565,275) (727,795) (478,933) 30,871 48,918 (1.076,879) 34,869 (1,171,858) (840,215) (6,369) 282.257 945,605 1,227,862 (66,683) (26.290) 971.895 945,605 (65,461) 195,492 776,403 971.895 S VF CORPORATION Consolidated Statements of Cash Flows 2016 Year Ended December 2015 In thousands 2014 S 1,074,106 $ 1.231,593 $ 1,047,505 79,644 281,577 67,762 17,283 89,005 (71,625) 104,357 (15,232) 143,562 272.075 73,420 12.006 (208,709) 7,088 396,362 274,883 104,313 (2,198) (9,864) (78,064) (34,784) 4,112 47,102 (37,210) (9,553) (129,574) 28.904 (48,627) 1,477,919 (124,248) (175,098) 225 4,206 (14,505) 2.599 1,203,430 854 (130,540) 69,807 20,293 41,989 22,614 1,762,066 Operating activities Net income Adjustments to reconcile net income to cash provided by operating activities: Impairment of goodwill and intangible assets Depreciation and amortization Stock-based compensation Provision for doubtful accounts Pension expense in excess of (less than) contributions Deferred income taxes Loss on sale of businesses Other, net Changes in operating assets and liabilities: Accounts receivable Inventories Accounts payable Income taxes Accrued liabilities Other assets and liabilities Cash provided by operating activities Investing activities Capital expenditures Proceeds from sale of businesses, net of cash sold Software purchases Other, net Cash used by investing activities Financing activities Net (decrease) increase in short-term borrowings Payments on long-term debt Payment of debt issuance costs Proceeds from long-term debt Purchases of treasury stock Cash dividends paid Proceeds from issuance of Common Stock, net of shares withheld for taxes Cash used by financing activities Effect of foreign currency rate changes on cash and equivalents Net change in cash and equivalents Cash and equivalents beginning of year) Cash and equivalents - end of year (a) (254,501) (234,077) (175,840) 115.983 (44,226) (8,331) (112,414) (63,283) (5,038) (322.822) (67,943) (27,235) (329,255) 4,761 432,262 (3,975) (1,475) (4,760) (421,069) (13,276) (6,807) 951,817 (1,000,468) (635,994) (732,623) (565,275) (727,795) (478,933) 30,871 48,918 (1.076,879) 34,869 (1,171,858) (840,215) (6,369) 282.257 945,605 1,227,862 (66,683) (26.290) 971.895 945,605 (65,461) 195,492 776,403 971.895 S VF CORPORATION Consolidated Statements of Stockholders' Equity Retained Accumulated Additional Common Stock Other Paid in Comprehensive Shares Amounts Capital Loss In thousands, except share amounts 440,310,370 $ 110,078 $ 2,746,590 $ (211,720) $ Earnings 3,432,090 1,047,505 (478,933) (724,786) (44,123) (12,037,000) 4,586,521 (3,009) 1,146 246,596 III (463,588) (99,683) 73,143 (424) (702,272) 432,859,891 108,215 2,993,186 Balance, December 2013 Net income Dividends on Common Stock Purchase of treasury stock Stock-based compensation, net Foreign currency translation and other Defined benefit pension plans Derivative financial instruments Marketable securities Balance, December 2014 Net income Dividends on Common Stock Purchase of treasury stock Stock-based compensation, net Foreign currency translation and other Defined benefit pension plans Derivative financial instruments Marketable securities Balance, December 2015 Net income Dividends on Common Stock Purchase of treasury stock Stock-based compensation, net Foreign currency translation and other Defined benefit pension plans Derivative financial instruments Balance, December 2016 3,231,753 1,231,593 (565,275) (730,114) (39,226) (10,036,100) 3,790,483 (2,509) 948 199,489 (361,228) 4,939 15,753 (414) (1,043,222) 426,614,274 106,654 3,192,675 3,128,731 1,074,106 (635,994) (996,485) (24,900) (15,932,075) 3,330,755 (3,983) 832 TI (76,410) 69,498 8,671 (1,041,463) $ 414,012,954 $ 103,503 $ 3,333,423 $ 2,545,458 See notes to consolidated financial statements. Based on the information in these financial statements, compute the 2016 return on common stockholders' equity, debt to assets ratio, and return on assets for each company. (Round answers to 1 decimal places, e.g. 15.2%.) Columbia Sportswear Company VF Corporation Return on common stockholders' equity % % Debt to assets % % Return on assets % % (c) Compute the payout ratio for each company. (Round answers to 1 decimal places, e.g. 15.2%.) Columbia Sportswear Company VF Corporation Payout ratio % % Which pays out a higher percentage of its earnings? pays out a higher percentage of its earnings. COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year Ended December 31, 2016 2015 2014 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) 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): Basic. Diluted $ 2,377,045 $ 2,326,180 $ 2,100,590 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) (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 $ 191,898 $ 174,337 $ 137,173 (2,834) 2.75 $ 2.48 $ 2.45 1.97 1.94 2.72 69,683 70,632 70,162 71,064 69,807 70,681 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Year Ended December 31, 2016 2015 2014 $ 198,439 $ 179,851 $ 141,859 (2) (6) 10 843 (2,908) 7,751 Net income Other comprehensive loss: Unrealized holding gains (losses) on available-for-sale securities (net of tax effects of $0,($3), and ($5), respectively)...... Unrealized gains (losses) on derivative transactions (net of tax effects of ($1,922), ($849) and ($1,507), respectively)....... Foreign currency translation adjustments (net of tax effects of ($347), ($760) and $1,023, respectively). Other comprehensive loss... Comprehensive income... Comprehensive income attributable to non-controlling interest.... Comprehensive income attributable to Columbia Sportswear Company. (4,485) (34,887) (27,789) (3.644) (37,801) (20,028) 194,795 142,050 121,831 4,678 4,382 4,185 $ 190,117 $ 137,668 $ 117,646 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED BALANCE SHEETS (In thousands) December 31, 2016 2015 ASSETS $ 551,389 $ 369,770 472 629 333,678 371,953 487,997 473,637 38,487 33,400 1,412.023 1,249,389 279,650 291,687 133,438 138,584 68,594 68,594 92,494 76,181 27,695 21,718 $ 2,013,894 $ 1,846,153 Current Assets: Cash and cash equivalents.. Short-term investments. Accounts receivable, net (Note 5).. Inventories... Prepaid expenses and other current assets. Total current assets. Property, plant, and equipment, net (Note 6) Intangible assets, net (Note 7) Goodwill (Note 7).... Deferred income taxes (Note 10) Other non-current assets Total assets. 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 Accumulated other comprehensive loss (Note 17). Total Columbia Sportswear Company shareholders' equity Non-controlling interest (Note 4). Total equity. Total liabilities and equity 215,048 142,158 5.645 362.851 14.053 42.622 12.710 147 432.383 1,940 217,230 141,862 5,038 366,070 15,030 40,172 8,839 229 430,340 53,801 34,776 1,529,636 1,385,860 (22,617) (20,836) 1,560,820 1.399,800 20,691 16,013 1,581,511 1,415,813 2,013,894 $1,846,153 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2016 2015 2014 198,439 $ 179,851 $ 141,859 60,016 4,805 (19,178) 10,986 56,521 5,098 (11,709) 11,672 (7,873) 54,017 481 (6,978) 11,120 (4,927) 36,710 (18,777) (5,452) (5,948) 1,483 4,847 4,768 2,468 275,167 (40,419) (103,296) 4,411 (2,524) 11,418 (2,017) (10,994) 4,966 95,105 (31,478) (62,086) (4,869) 4,291 41,941 35,051 1,166 6,195 185,783 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: ........ Depreciation and amortization Loss on disposal or impairment of property, plant, and equipment. ... Deferred income taxes... Stock-based compensation.... Excess tax benefit from employee stock plans. Changes in operating assets and liabilities: Accounts receivable Inventories Prepaid expenses and other current assets Other assets. Accounts payable Accrued liabilities Income taxes payable Other liabilities Net cash provided by operating activities. Cash flows from investing activities: Acquisition of business, net of cash acquired Purchases of short-term investments Sales of short-term investments. Capital expenditures.. Proceeds from sale of property, plant, and equipment. Net cash used in investing activities Cash flows from financing activities: Proceeds from credit facilities. Repayments on credit facilities Proceeds from issuance of common stock under employee stock plans Tax payments related to restricted stock unit issuances. Excess tax benefit from employee stock plans Repurchase of common stock Cash dividends paid Proceeds from note payable to related party Net cash used in financing activities. Net effect of exchange rate changes on cash Net increase (decrease) in cash and cash equivalents. Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year. Supplemental disclosures of cash flow information: Cash paid during the year for income taxes.. Cash paid during the year for interest on note payable to related party .... Supplemental disclosures of non-cash investing activities: (21,263) 21,263 (49,987) 97 (49,890) (38,208) 64,980 (69.917) 144 (43,001) (188,467) (48,243) 112,895 (60,283) 71 (184,027) 62,885 (64,825) 13,167 (5,117) 53,429 (51,479) 17,442 (4,895) 7,873 (70,068) (43,547) (11) (48,122) 52,356 (52,205) 22,277 (3,141) 4,927 (15,000) (39,836) 16,072 (14,550) (11,137) (23,931) 437,489 413,558 (42,023) (1,635) 181.619 369,770 551,389 $ (91,245) (4,647) (43,788) 413,558 369.770 S 70,424 $ 1.049 87,350 $ 1,115 53,958 838 Supplemental disclosures of non-cash investing activities: Capital expenditures incurred but not yet paid 2,710 4,698 7,196 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF EQUITY (In thousands) Columbia Sportswear Company Shareholders' Equity Common Stock Accumulated Other Non- Shares Retained Comprehensive Controlling Outstanding Amount Earnings Income (Loss) Interest Total 69,190 $ 52,325 $1,157,733 $ 35,360 $ 7,446 $ 1,252,864 137,173 4.686 141,859 10 - 10 7,751 (27.288) (501) 7,751 (27,789) (39,836) (39,836) 1,059 11 19.136 5,119 11,120 (15,000) 72,700 19,136 5,119 11.120 (15,000) 1,355,234 179,851 (421) 69,828 15.833 1.255.070 174,337 11.631 5,514 (6) (6 (6) BALANCE, JANUARY 1, 2014 Net income....... Other comprehensive income (loss): Unrealized holding gains on available-for-sale securities, net ....... Unrealized holding gains on derivative transactions, net ...... Foreign currency translation adjustment, net.. Cash dividends ($0.57 per share). Issuance of common stock under employee stock plans, net .......... Tax adjustment from stock plans Stock-based compensation expense. Repurchase of common stock BALANCE, DECEMBER 31, 2014 Net income ....... Other comprehensive loss: Unrealized holding losses on available-for- sale securities, net........ Unrealized holding losses on derivative transactions, net .......... Foreign currency translation adjustment, net.. Cash dividends ($0.62 per share). Issuance of common stock under employee stock plans, net ......... Tax adjustment from stock plans Stock-based compensation expense Repurchase of common stock. BALANCE, DECEMBER 31, 2015 Net income Other comprehensive income (loss): Unrealized holding losses on available-for- sale securities, net... Unrealized holding gains on derivative transactions, Foreign currency translation adjustment, net.. Cash dividends ($0.69 per share). Issuance of common stock under employee stock plans, net Stock-based compensation expense Repurchase of common stock. BALANCE, DECEMBER 31, 2016 (2.908) (33,755) (1,132) (2,908) (34,887) (43,547) (43,547) 835 11 12.547 7.925 11,672 (70,068) 34.776 (1,386) 12.547 7.925 11,672 (70,068) 1,415,813 198,439 69.277 (20.836) 1,385,860 191,898 16.013 6,541 (2) (2) 686 (2,465) 157 (2,020) 843 (4,485) (48,122) (48,122) 596 8,050 10.986 (11) $ 53,801 $1,529,636 8,050 10.986 (11) $ 1,581,511 69,873 (22,617) $ 20,691 VF CORPORATION Consolidated Balance Sheets December 2016 2015 In thousands, except share amounts 1.227,862 $ 944,423 1,197,678 1,569,325 298.233 4.293.098 939,650 1.839,698 1,736,959 929,882 1,289,962 1,555,360 284,215 89,176 4,163,136 945,491 1.948.611 1,788,407 583,866 210,031 9,639,542 9,739,287 $ ASSETS Current assets Cash and equivalents s Accounts receivable, less allowance for doubtful accounts of $21,131 in 2016 and $23.275 in 2015 Inventories Other current assets Current assets of discontinued operations Total current assets Property, plant and equipment Intangible assets Goodwill Other assets Other assets of discontinued operations Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Short-term borrowings $ Current portion of long-term debt Accounts payable Accrued liabilities Current liabilities of discontinued operations Total current liabilities Long-term debt Other liabilities Other liabilities of discontinued operations Commitments and contingencies Total liabilities Stockholders' equity Preferred Stock, par value $1; shares authorized 25,000,000; no shares outstanding in 2016 and 2015 Common Stock, stated value $0.25; shares authorized, 1,200,000,000; 414,012,954 shares outstanding in 2016 and 426,614,274 shares outstanding in 2015 Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity S 26,029 $ 253,689 664,644 841,038 449,590 3,351 680,606 782,148 26,018 1,941,713 1,401,820 900,256 10,915 1,785,400 2,039,180 973,786 4,798,366 4.254,704 103,503 3,333,423 (1,041,463) 2,545,458 4,940,921 9,739,287 $ 106,654 3,192,675 (1,043,222) 3,128,731 5,384,838 9,639,542 See notes to consolidated financial statements. VF CORPORATION Consolidated Statements of Income 2014 $ Year Ended December 2016 2015 In thousands, except per share amounts 11,902,314 $ 11,909,635 $ 116,689 123,020 12,019,003 12,032,655 11,757,399 124,331 11,881,730 6,235,699 4,009,029 6,112.880 3.970,536 Net sales Royalty income Total revenues Costs and operating expenses Cost of goods sold Selling, general and administrative expenses Impairment of goodwill and intangible assets Total costs and operating expenses Operating income Interest income Interest expense Other income (expense), net Income from continuing operations before income taxes Income taxes Income from continuing operations Loss from discontinued operations, net of tax Net income Earnings per common share - basic Continuing operations Discontinued operations Total earnings per common share - basic Earnings per common share - diluted Continuing operations Discontinued operations Total earnings per common share - diluted Cash dividends per com ommon share 6,196,335 4,243,798 79,644 10,519,777 1,499,226 9,094 (94,730) 2,001 1,415,591 243,064 1,172,527 (98,421) 1,074,106 $ 10,244,728 1,787,927 7,152 (88,772) 1,028 1,707,335 392,204 1.315,131 (83,538) 1,231,593 $ 10,083,416 1,798,314 6,911 (86,104) (5,545) 1,713,576 385,827 1,327,749 (280,244) 1,047,505 $ $ 2.82 $ (0.24) 2.58 $ 3.09 $ (0.19) 2.90 $ 3.07 (0.65) 2.42 S S 2.78 $ (0.24) 2.54 $ 1.5300 $ 3.04 $ (0.19) 2.85 $ 1.3300 $ 3.02 (0.64) 2.38 1.1075 S $ See notes to consolidated financial statements. VF CORPORATION Consolidated Statements of Comprehensive Income 2014 Year Ended December 2016 2015 In thousands 1,074,106 $ 1,231,593 $ $ 1,047,505 (52,028) (24,382) (361,814) 586 (469,663) 6,075 (5,384) 65.212 2,584 50,922 (43,836) (62,556) 61.966 3,038 4,062 (1,571) (203,234) 37,518 5,445 60,588 Net income Other comprehensive income (loss) Foreign currency translation and other Gains (losses) arising during year Less income tax effect Defined benefit pension plans Current year actuarial gains (losses) and plan amendments Amortization of net deferred actuarial losses Amortization of deferred prior service costs Reclassification of net actuarial loss from settlement charge Less income tax effect Derivative financial instruments Gains (losses) arising during year Less income tax effect Reclassification to net income for (gains) losses realized Less income tax effect Marketable securities Gains (losses) arising during year Less income tax effect Reclassification to net income for (gains) losses realized Less income tax effect Other comprehensive income (loss) Comprehensive income 90,708 (9.672) (107,457) 35,092 89,993 (34.668) (64,976) 25,404 88,387 (34,736) 32,111 (12.619) (698) 274 495 (195) (1,177) 463 (340,950) 890,643 $ 1.759 1,075,865 $ (490,552) 556,953 $ See notes to consolidated financial statements. VF CORPORATION Consolidated Statements of Cash Flows 2016 Year Ended December 2015 In thousands 2014 S 1,074,106 $ 1.231,593 $ 1,047,505 79,644 281,577 67,762 17,283 89,005 (71,625) 104,357 (15,232) 143,562 272.075 73,420 12.006 (208,709) 7,088 396,362 274,883 104,313 (2,198) (9,864) (78,064) (34,784) 4,112 47,102 (37,210) (9,553) (129,574) 28.904 (48,627) 1,477,919 (124,248) (175,098) 225 4,206 (14,505) 2.599 1,203,430 854 (130,540) 69,807 20,293 41,989 22,614 1,762,066 Operating activities Net income Adjustments to reconcile net income to cash provided by operating activities: Impairment of goodwill and intangible assets Depreciation and amortization Stock-based compensation Provision for doubtful accounts Pension expense in excess of (less than) contributions Deferred income taxes Loss on sale of businesses Other, net Changes in operating assets and liabilities: Accounts receivable Inventories Accounts payable Income taxes Accrued liabilities Other assets and liabilities Cash provided by operating activities Investing activities Capital expenditures Proceeds from sale of businesses, net of cash sold Software purchases Other, net Cash used by investing activities Financing activities Net (decrease) increase in short-term borrowings Payments on long-term debt Payment of debt issuance costs Proceeds from long-term debt Purchases of treasury stock Cash dividends paid Proceeds from issuance of Common Stock, net of shares withheld for taxes Cash used by financing activities Effect of foreign currency rate changes on cash and equivalents Net change in cash and equivalents Cash and equivalents beginning of year) Cash and equivalents - end of year (a) (254,501) (234,077) (175,840) 115.983 (44,226) (8,331) (112,414) (63,283) (5,038) (322.822) (67,943) (27,235) (329,255) 4,761 432,262 (3,975) (1,475) (4,760) (421,069) (13,276) (6,807) 951,817 (1,000,468) (635,994) (732,623) (565,275) (727,795) (478,933) 30,871 48,918 (1.076,879) 34,869 (1,171,858) (840,215) (6,369) 282.257 945,605 1,227,862 (66,683) (26.290) 971.895 945,605 (65,461) 195,492 776,403 971.895 S VF CORPORATION Consolidated Statements of Cash Flows 2016 Year Ended December 2015 In thousands 2014 S 1,074,106 $ 1.231,593 $ 1,047,505 79,644 281,577 67,762 17,283 89,005 (71,625) 104,357 (15,232) 143,562 272.075 73,420 12.006 (208,709) 7,088 396,362 274,883 104,313 (2,198) (9,864) (78,064) (34,784) 4,112 47,102 (37,210) (9,553) (129,574) 28.904 (48,627) 1,477,919 (124,248) (175,098) 225 4,206 (14,505) 2.599 1,203,430 854 (130,540) 69,807 20,293 41,989 22,614 1,762,066 Operating activities Net income Adjustments to reconcile net income to cash provided by operating activities: Impairment of goodwill and intangible assets Depreciation and amortization Stock-based compensation Provision for doubtful accounts Pension expense in excess of (less than) contributions Deferred income taxes Loss on sale of businesses Other, net Changes in operating assets and liabilities: Accounts receivable Inventories Accounts payable Income taxes Accrued liabilities Other assets and liabilities Cash provided by operating activities Investing activities Capital expenditures Proceeds from sale of businesses, net of cash sold Software purchases Other, net Cash used by investing activities Financing activities Net (decrease) increase in short-term borrowings Payments on long-term debt Payment of debt issuance costs Proceeds from long-term debt Purchases of treasury stock Cash dividends paid Proceeds from issuance of Common Stock, net of shares withheld for taxes Cash used by financing activities Effect of foreign currency rate changes on cash and equivalents Net change in cash and equivalents Cash and equivalents beginning of year) Cash and equivalents - end of year (a) (254,501) (234,077) (175,840) 115.983 (44,226) (8,331) (112,414) (63,283) (5,038) (322.822) (67,943) (27,235) (329,255) 4,761 432,262 (3,975) (1,475) (4,760) (421,069) (13,276) (6,807) 951,817 (1,000,468) (635,994) (732,623) (565,275) (727,795) (478,933) 30,871 48,918 (1.076,879) 34,869 (1,171,858) (840,215) (6,369) 282.257 945,605 1,227,862 (66,683) (26.290) 971.895 945,605 (65,461) 195,492 776,403 971.895 S VF CORPORATION Consolidated Statements of Stockholders' Equity Retained Accumulated Additional Common Stock Other Paid in Comprehensive Shares Amounts Capital Loss In thousands, except share amounts 440,310,370 $ 110,078 $ 2,746,590 $ (211,720) $ Earnings 3,432,090 1,047,505 (478,933) (724,786) (44,123) (12,037,000) 4,586,521 (3,009) 1,146 246,596 III (463,588) (99,683) 73,143 (424) (702,272) 432,859,891 108,215 2,993,186 Balance, December 2013 Net income Dividends on Common Stock Purchase of treasury stock Stock-based compensation, net Foreign currency translation and other Defined benefit pension plans Derivative financial instruments Marketable securities Balance, December 2014 Net income Dividends on Common Stock Purchase of treasury stock Stock-based compensation, net Foreign currency translation and other Defined benefit pension plans Derivative financial instruments Marketable securities Balance, December 2015 Net income Dividends on Common Stock Purchase of treasury stock Stock-based compensation, net Foreign currency translation and other Defined benefit pension plans Derivative financial instruments Balance, December 2016 3,231,753 1,231,593 (565,275) (730,114) (39,226) (10,036,100) 3,790,483 (2,509) 948 199,489 (361,228) 4,939 15,753 (414) (1,043,222) 426,614,274 106,654 3,192,675 3,128,731 1,074,106 (635,994) (996,485) (24,900) (15,932,075) 3,330,755 (3,983) 832 TI (76,410) 69,498 8,671 (1,041,463) $ 414,012,954 $ 103,503 $ 3,333,423 $ 2,545,458 See notes to consolidated financial statements
