Based on the information contained in these financial statements, compute free cash flow for this company. Show your work (Show a negative fee cash flow with either 0-signe -15.000 or in parenthesis es 15.000 Enter amounts in thousands COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS ila thirants, ) Net Cute Gross produit Selling en and administrative exposes Neticeminino come from operations Investice, ... Interest expenses ole payable to related party (Note 22) Others operating Income before income tax Income tax expense (None 103 Netcome Netowe butable to controlling Netice butable to Columbia Sportswear Como Eines per share atbutable to Columbia Sportwear Company (Note 161 Year the 2014 523770145 2,736 110 52.100,39 1.266.17 1.352.00 1.145,62 1.11145 1,073.500 954,951 564,054 $31.971 263063 10.344 3.192 6.956 256.508 249,721 198,844 2.000 1.331 1,094 (1.041) (1.999) (1,003) 3723 (2,034) (214) 256,898 347.319 198321 38,459 56.6623 19.499 129351 141,859 6.541 5.514 40 1919 174337 5137.173 2755 2.72 2485 2.45 1.97 194 Diluted Weighted average shares outstanding Note 16 683 20,162 21.064 69,807 7063 Dild 70.633 See scompanying could financial statement COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME clothed , $195 1790815141 123 16) 10 843 2.500 7,751 Other comprese di focale of affects of...pechy Legins onder taxele of 2 (19d (51.507, respectively Fuentrada of selects of ( 57) 500.003. ephy) Other couple ou Congeni Camerong interest Chce Spot (4 (147) (27.7895 0.64 37.00 20.02) 194,795 110.000 121.21 673 4382 IS 1917 5.137.663 5 1175 See accompanying to come facial COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED BALANCE SHEETS (In thousands) December 31 2016 2015 $ 551,389 $ 369.770 472 629 333.678 371,953 487.997 473.637 38.487 33,400 1.412.023 1.249389 279.650 291.687 133438 138.584 68.594 68.594 92.494 76,181 27.695 21,718 $2.013.894 S 1.846, 153 ASSETS 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) Tatangible assets, net (Note 7 Goodwill (Noto 7), Deferred income taxes (Note 10). Other non-current assets Total assets LIABILITIES AND EQUITY Current Liabilities: Short-term bonowings (Note 8) Accounts payable. Accrued liabilities (Note %). 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 Mock (no par value: 250.000 shares authorized: 69.873 and 69.277 issued and outstanding (Note 14). Retained earnings Accumulated other comprehensive low (Note 17). Total Columbia Sportswear Company Shurcholders equity Non controlling interest (Note 4). Total quity Total liabilities and equity 215.08 142.158 5.645 3622851 14.053 42.622 12.710 147 432.383 1.940 217.230 141.862 5,038 366,070 15.030 40,172 8R19 229 430,340 5301 34,776 1.529.6.36 1.385.860 (22.617) (20,836) 1.560.500 1.399,800 20,691 16,013 1.581.311 1415.813 $ 2.013894 S 1.846,153 See accompanying notes to constated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands Year Ended December 31 2016 Cash flows from operating activities: Net Income $198.49 $ 179.8515 141.859 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 60,016 56521 54,017 Loss on disposal or impuirment of property, plant, and equipment 4.805 5,098 481 Deferred income taxes (19.178) (11.709 16,978) Stock-based compensation 10.986 11,672 11.120 Excess tax benefit from employee stock plans (7.873) (4.977) Changes in operating assets and liabilities: Accounts receivable 36,710 (40.419) 1.47) Inventories (18.777) (103.296) (62,086) Prepaid expenses and other current assets (3.452) 4411 (4.860) Other assets (5,948) (2524) 4,291 Accounts payable 1.483 11.418 41.941 Accrued liabilities 4,847 (2017) 33.051 Income taxes payable 4,768 (10.990) 1.166 Other liabilities 2.468 4.966 6.195 Net cash provided by operating activities 275.167 95.105 185,783 Cash flows from investing activities: Acquisition of business, net of cash acquired (188467) Purchases of short-term investments (21.263) (38.208) (48.243) Sales of short-term investments 21,263 64.980 112,895 Capital expenditures. (49.987) (69.917) Proceeds from sale of property, plant, and equipment. 97 71 Ner cash used in investing activities (49.890) (43.001) (184.27 Cash flows from financing activities Proceeds from credit facilities 62.885 53,429 52.356 Repayments on credit facilities (64.825) (51.479) (52.205) Proceeds from issue of common stock under employee stock plans 13.167 17,442 22.277 Tax payments related to restricted stock unit issuances (5.117) (4.895) 3.141) Excess tax benefit from employee stock plans 7873 4927 Repurchase of common stock (11) (70.068) (15.000) Cash dividends paid (48.122) (43.547) 39.636) Proceeds from note payable to related party 16,072 Net cash used in financing activities (42.023) 091.245) (14550) Net effect of exchange rate changes on cash (1.635) (4.647) (1137) Net increase (decrease in cash and cash equivalents 181.619 (43,788) 23.931) Cash and cash equivalents, beginning of year 369,770 413.558 437489 Cash and cash equivalents, end of year. $ 551,389 $ 169,770 S 413558 Supplemental disclosures of cash flow Information: Cash paid during the year for income taxes 70.4245 87.3505 53.958 Cash paid during the year for interest on note payable to related party 1,049 1.115 RU Supplemental disclosures of non-cash investing activities: Capital expenditures incurred but not yet poid 2.710 See accompanying notes to consolidated financial statements 144 -- - LI $1 COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF EQUITY (In thousands) Columbia Sportswear Company Shareholders Egally Common Stock Armed Other Noe Retained Comprehenste Controlling Outstanding Amount Earnings Income BALANCE, JANUARY 1, 2014 Interest Total 69,190 552.325 $1,157,7335 35.360 $ Net income 7,416 S 1.252.354 137,173 Other comprehensive income (lossy 4.686 141.859 Unrealized holding sains on available for sale Securities, et 10 10 Unrealized holding gains on derivative transactions, nel 7,751 7.751 Foreign currency translation adjustment, net (27.288) CSOL) (27.789) Cash dividends (80.57 per share)... (39.836) (396) Issuance of common stock under employee stock plans.net 1,059 19,136 19.136 Tax adjustment from stock plans 5,119 5.119 Stock-based compensation expense. 11.120 11.120 Repurchase of common stock (421) (15,000) (15.000) BALANCE, DECEMBER 31, 2014 69,828 72.700 1.255.000 15.333 11.631 1.355.234 Net income 174337 55514 1790251 Other comprehensive low Unrealized holding losses on available for sale securities, niet 16) 6 Unrealized holding hones on derivative transactions, net 2.SOR 2.90 Foreign currency translation adjustment, net.. (33.755) (1,132) OLURT Cash dividends (50.62 per shure) (43.547 0.547) Issuutice of common stock under employee stock plans, nel 12.547 12.547 Tax adjustinent from stock plans 7,925 7.925 11,672 11,672 Stock-based compensation expense, Repurchase of common stock (1.386) (70,068) 00.06) 34.776 BALANCE, DECEMBER 31, 2015 69.277 11.50 16.013 (20.836) 141.813 6541 191,898 196.439 Net income Other comprehensive income (low) Unrclined holding loves on available for sale securities, net Unrealized holding sains on derivative 66 157 340 transactions, net 465) 0.020 (446) Foreign currency translation adjustment, met (46.122) Cash dividends (50.69 per share) OSO Issuance of common stock under employee stock 596 ROSO plans, net 10956 10.986 Stock-based compensation expertise.. (11) (11) Repurchase of common Mock 69,873 553801 $1.529,6365 (22.617) 5 2091 S 1581311 BALANCE. DECEMBER 31, 2016...... -- - TIL 1 - 11 181 1883 2 B BIL 1 151118 - See accompanying notes to consolidated financial statements Based on the information contained in these financial statements, compute free cash flow for this company. Show your work (Show a negative fee cash flow with either 0-signe -15.000 or in parenthesis es 15.000 Enter amounts in thousands COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS ila thirants, ) Net Cute Gross produit Selling en and administrative exposes Neticeminino come from operations Investice, ... Interest expenses ole payable to related party (Note 22) Others operating Income before income tax Income tax expense (None 103 Netcome Netowe butable to controlling Netice butable to Columbia Sportswear Como Eines per share atbutable to Columbia Sportwear Company (Note 161 Year the 2014 523770145 2,736 110 52.100,39 1.266.17 1.352.00 1.145,62 1.11145 1,073.500 954,951 564,054 $31.971 263063 10.344 3.192 6.956 256.508 249,721 198,844 2.000 1.331 1,094 (1.041) (1.999) (1,003) 3723 (2,034) (214) 256,898 347.319 198321 38,459 56.6623 19.499 129351 141,859 6.541 5.514 40 1919 174337 5137.173 2755 2.72 2485 2.45 1.97 194 Diluted Weighted average shares outstanding Note 16 683 20,162 21.064 69,807 7063 Dild 70.633 See scompanying could financial statement COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME clothed , $195 1790815141 123 16) 10 843 2.500 7,751 Other comprese di focale of affects of...pechy Legins onder taxele of 2 (19d (51.507, respectively Fuentrada of selects of ( 57) 500.003. ephy) Other couple ou Congeni Camerong interest Chce Spot (4 (147) (27.7895 0.64 37.00 20.02) 194,795 110.000 121.21 673 4382 IS 1917 5.137.663 5 1175 See accompanying to come facial COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED BALANCE SHEETS (In thousands) December 31 2016 2015 $ 551,389 $ 369.770 472 629 333.678 371,953 487.997 473.637 38.487 33,400 1.412.023 1.249389 279.650 291.687 133438 138.584 68.594 68.594 92.494 76,181 27.695 21,718 $2.013.894 S 1.846, 153 ASSETS 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) Tatangible assets, net (Note 7 Goodwill (Noto 7), Deferred income taxes (Note 10). Other non-current assets Total assets LIABILITIES AND EQUITY Current Liabilities: Short-term bonowings (Note 8) Accounts payable. Accrued liabilities (Note %). 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 Mock (no par value: 250.000 shares authorized: 69.873 and 69.277 issued and outstanding (Note 14). Retained earnings Accumulated other comprehensive low (Note 17). Total Columbia Sportswear Company Shurcholders equity Non controlling interest (Note 4). Total quity Total liabilities and equity 215.08 142.158 5.645 3622851 14.053 42.622 12.710 147 432.383 1.940 217.230 141.862 5,038 366,070 15.030 40,172 8R19 229 430,340 5301 34,776 1.529.6.36 1.385.860 (22.617) (20,836) 1.560.500 1.399,800 20,691 16,013 1.581.311 1415.813 $ 2.013894 S 1.846,153 See accompanying notes to constated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands Year Ended December 31 2016 Cash flows from operating activities: Net Income $198.49 $ 179.8515 141.859 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 60,016 56521 54,017 Loss on disposal or impuirment of property, plant, and equipment 4.805 5,098 481 Deferred income taxes (19.178) (11.709 16,978) Stock-based compensation 10.986 11,672 11.120 Excess tax benefit from employee stock plans (7.873) (4.977) Changes in operating assets and liabilities: Accounts receivable 36,710 (40.419) 1.47) Inventories (18.777) (103.296) (62,086) Prepaid expenses and other current assets (3.452) 4411 (4.860) Other assets (5,948) (2524) 4,291 Accounts payable 1.483 11.418 41.941 Accrued liabilities 4,847 (2017) 33.051 Income taxes payable 4,768 (10.990) 1.166 Other liabilities 2.468 4.966 6.195 Net cash provided by operating activities 275.167 95.105 185,783 Cash flows from investing activities: Acquisition of business, net of cash acquired (188467) Purchases of short-term investments (21.263) (38.208) (48.243) Sales of short-term investments 21,263 64.980 112,895 Capital expenditures. (49.987) (69.917) Proceeds from sale of property, plant, and equipment. 97 71 Ner cash used in investing activities (49.890) (43.001) (184.27 Cash flows from financing activities Proceeds from credit facilities 62.885 53,429 52.356 Repayments on credit facilities (64.825) (51.479) (52.205) Proceeds from issue of common stock under employee stock plans 13.167 17,442 22.277 Tax payments related to restricted stock unit issuances (5.117) (4.895) 3.141) Excess tax benefit from employee stock plans 7873 4927 Repurchase of common stock (11) (70.068) (15.000) Cash dividends paid (48.122) (43.547) 39.636) Proceeds from note payable to related party 16,072 Net cash used in financing activities (42.023) 091.245) (14550) Net effect of exchange rate changes on cash (1.635) (4.647) (1137) Net increase (decrease in cash and cash equivalents 181.619 (43,788) 23.931) Cash and cash equivalents, beginning of year 369,770 413.558 437489 Cash and cash equivalents, end of year. $ 551,389 $ 169,770 S 413558 Supplemental disclosures of cash flow Information: Cash paid during the year for income taxes 70.4245 87.3505 53.958 Cash paid during the year for interest on note payable to related party 1,049 1.115 RU Supplemental disclosures of non-cash investing activities: Capital expenditures incurred but not yet poid 2.710 See accompanying notes to consolidated financial statements 144 -- - LI $1 COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF EQUITY (In thousands) Columbia Sportswear Company Shareholders Egally Common Stock Armed Other Noe Retained Comprehenste Controlling Outstanding Amount Earnings Income BALANCE, JANUARY 1, 2014 Interest Total 69,190 552.325 $1,157,7335 35.360 $ Net income 7,416 S 1.252.354 137,173 Other comprehensive income (lossy 4.686 141.859 Unrealized holding sains on available for sale Securities, et 10 10 Unrealized holding gains on derivative transactions, nel 7,751 7.751 Foreign currency translation adjustment, net (27.288) CSOL) (27.789) Cash dividends (80.57 per share)... (39.836) (396) Issuance of common stock under employee stock plans.net 1,059 19,136 19.136 Tax adjustment from stock plans 5,119 5.119 Stock-based compensation expense. 11.120 11.120 Repurchase of common stock (421) (15,000) (15.000) BALANCE, DECEMBER 31, 2014 69,828 72.700 1.255.000 15.333 11.631 1.355.234 Net income 174337 55514 1790251 Other comprehensive low Unrealized holding losses on available for sale securities, niet 16) 6 Unrealized holding hones on derivative transactions, net 2.SOR 2.90 Foreign currency translation adjustment, net.. (33.755) (1,132) OLURT Cash dividends (50.62 per shure) (43.547 0.547) Issuutice of common stock under employee stock plans, nel 12.547 12.547 Tax adjustinent from stock plans 7,925 7.925 11,672 11,672 Stock-based compensation expense, Repurchase of common stock (1.386) (70,068) 00.06) 34.776 BALANCE, DECEMBER 31, 2015 69.277 11.50 16.013 (20.836) 141.813 6541 191,898 196.439 Net income Other comprehensive income (low) Unrclined holding loves on available for sale securities, net Unrealized holding sains on derivative 66 157 340 transactions, net 465) 0.020 (446) Foreign currency translation adjustment, met (46.122) Cash dividends (50.69 per share) OSO Issuance of common stock under employee stock 596 ROSO plans, net 10956 10.986 Stock-based compensation expertise.. (11) (11) Repurchase of common Mock 69,873 553801 $1.529,6365 (22.617) 5 2091 S 1581311 BALANCE. DECEMBER 31, 2016...... -- - TIL 1 - 11 181 1883 2 B BIL 1 151118 - See accompanying notes to consolidated financial statements