COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year Ended December 31, 2015 2016 $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) (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 $191,898 $ 174,337 $ 137,173 2.75 S 2.48 $ 1.97 2.72 2.45 1.94 69,683 70,162 69,807 70,632 71,064 70,681 Net sales www. Cost of sales www 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 COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Year Ended December 31, 2016 2015 2014 198.439 S 179.851 S 141.859 (2) 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 ($1.922X ($849) and ($1.507), respectively). Foreign currency translation adjustments (net of tax effects of ($347). ($760) and S1.023, respectively) Other comprehensive loss. Comprehensive income. Comprehensive income attributable to non-controlling interest. Comprehensive income attributable to Columbia Sportswear Company MOM (4.485) (34.887) (27.789) (3.644) (37.801) (20,028) 194.795 142,050 121,831 4,678 4,382 4,185 $ 190,112 $ 137,668 $ 117.646 ON See accompanying notes to consolidated financial statements Current Assets: COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED BALANCE SHEETS (In thousands) 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. Current Liabilities: LIABILITIES AND EQUITY 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 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 1,249,389 279,650 291,687 133,438 138.584 68,594 68,594 92,494 76,181 27,695 21,718 $2,013,894 $ 1,846,153 $ $ 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 (22,617) (20,836) 1,560,820 1,399,800 20,691 16.013 1.581.511 1415,813 $2,013,894 $1,846,153 COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year End December 2016 2015 Cash flows from operating activities Net Income $ 198.4395 179.831 $ 141,859 Adjustments to reconcile net income to net cash provided by operating activides: Depreciation and amortization 60,016 56,521 54,017 Loss on disposal or impairment of property, plant, and equipment.... 4.805 5.098 481 Deferred income taxes (19,178) (11,709) (6,978) Stock-based compensation 10.986 11,672 11.120 Excess tax benefit from employee sock plans. (1873) (4.927) Changes in operating assets and liabilities: Accounts receivable 36.710 (40,419) (31.478) Inventories (18.777) (103,296) (62,086) Prepaid expenses and other current assets (5452) 4411 (4.869) Other assets. (5.948) (2.524) 4.291 Accounts payable 1.483 11.418 41.941 Accrued liabilities, 4,847 (2.017) 35.051 Income taxes payable 4.768 (10.994) 1.166 Other liabilities 2.468 4,966 6,195 Net cash provided by operating activities 275.167 95,105 185.780 Cash Nows from Investing activities: Acquisition of business, net of cash acquired (188,467) 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) (60,283) Proceeds from sale of property, plant, and equipement. 97 144 71 Net cash used in investing activities (49.890) (43.001) (184.027) Cash News 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 issuance of common stock under employee stock plans 13.167 17.442 22.277 Tax payments related to restricted stock unit issuances 05.117) (4.895) (3.141) Excess tax benefit from employee stock plans 7.873 4.927 Repurchase of common stock (11) (70.068) (15.000) Cash dividends paid (48,122) (43.547) (39.836) Proceeds from note payable to related party 16,072 Net cash used in financing activities. (42.023) 091.245) (14.550) Net effect of exchange rate changes on cash. (1.635) (4.647) (LL.137) Net increase (decrease) in cash and cash equivalents. 181.619 (43,788) 23.931) Cash and cash equivalents, beginning of year 369.770 413.558 437,489 Cash and cash equivalents, end of year. S 551 3895 369,770 S 413358 Supplemental disclosures of cash flow information: Cash paid during the year for income taxes. $ 20,424 $ 87,350 $ 53.958 Cush paid during the year for interest on note payable to related party.... 1.049 1.115 838 Supplemental disclosures of non-cash Investing activities Capital expenditures incurred but not yet paid 2.710 4.698 7.196 - COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF EQUITY (In thousands) Other Non Total 69,190 $ 52.325 $1,157,733 S 35,360 S 7,446 $1,252,864 137,173 4,686 141,859 10 10 7,751 7,751 (27,288) (501) (27,789) (39,836) 19,136 5.119 11.120 (15,000) 15.833 11,631 1.355.234 5,514 179.851 (6) (6) (2,908) (1,132) (34,387) (43.547) 12.347 7.925 11.672 (70,068) 1415,813 198,439 BALANCE, JANUARY 1, 2014. Net Income. Other comprehemive income (los) Unrealized holding gains on availah securities, net Unrealized holding gains on derivative transactions, net Foreign currency translation adjustment, net Cash dividends ($50.57 per shan Issuance of common stock under employee r plans, net Tax adjustment from stock plans Stock-based compensation expense. Repurchase of common stock BALANCE, DECEMBER 31, 2014. Net Income Other comprehemive lon Unrealized holding losses on available-for- sale securities, net. Unrealized holding losses on derivative transactions, net Foreign currency translation adjustment, net Cash dividends (50.62 per share). Issuance of common stock under employee stock plans, ne Tax adjustment from stock plans. Stock-based compensation expense Repurchase of common stock BALANCE, DECEMBER 31, 2015 Net income Other comprehensive income (lous Unmalized holding losses oe available-for- sale securities, net. Unrealized holding gains on derivative transactions, net Foreign currency translation adjustment, net Cash dividends ($0.69 per share) Isance of common stock under employee stock plans, net Stock-based compensation expense Repurchase of common stock BALANCE, DECEMBER 31, 2016 1,059 19.136 5,119 - 11,120 (421) (15,000) 69,828 1111 211 835 1 1111 1 72,700 1.255,070 174337 111 113 111185 (39.836) 1 THIE 12.547 7.925 11.672 (1386) (70,068) 69,277 34,776 1.385,860 191.398 1 115 11LISE (43.547) II 16,013 6.541 686 157 843 (2,465) (2020) (4.485) (48,122) 596 8,050 10.986 (11) 8,050 10,986 (11) 69,873 $ 53.801 $1.52966 S (22.617) $ 20,691 $1.581.511 (2.908) (33,755) 821 111IST 20,836) See accompanying notes to consolidated financial statement (2) 1 (2) VF CORPORATION Consolidated Balance Sheets ASSETS Current assets Cash and equivalents $ Accounts receivable, less allowance for doubtful accounts of $21,131 in 2016 and $23,275 in 2015 Inventaries 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 abilities Short-term borrowings S 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 2016 December In thands except share a 1.227,862 S 1.197,678 1.569,325 298,233 4,293,098 939,650 1.839,698 1,736,959 929,882 9,739,287 S 26,029 $ 253,689 664,644 841,038 1,785,400 2,039,180 973,786 4,798,366 103,503 3,333,423 (1,041,463) 2.545.458 4.940,921 S 9.739.287 S 2015 944,423 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 9,639,542 449,590 3,351 680,606 782,148 26,018 1.941,713 1.401,820 900,256 10,915 4.254,704 106,654 3,192,675 (1,043,222) 3,128,731 5,384,838 9.639,542 VF CORPORATION Consolidated Statements of Income 2016 11,902,314 S 11,909,635 $ 116,689 123,020 12,019,003 12,032,655 6,196,335 6,235,699 4,243,798 4,009,029 79,644 10,519,777 10,244,728 1,499,226 1,787,927 9,094 7,152 (94,730) (88,772) 2,001 1,028 1,415,591 1,707,335 243,064 392,204 1,172,527 1.315,131 (98,421) 1,074,106 S 2.82 $ 2.58 S 2.78 $ 2.54 $ S 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 common share S $ Year Ended December 2015 In thousands, except per share amounts (0.24) (0.24) 1.5300 (83,538) 1,231,593 $ 3.09 $ (0.19) 2.90 S 3.04 S (0.19) 2.85 S 1.3300 $ 2014 11,757,399 124,331 11,881,730 6,112,880 3,970,536 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 3.07 (0.65) 2.42 3.02 (0.64) 2.38 1.1075 VF CORPORATION Consolidated Statements of Comprehensive Income 2016 1,074,106 $ (52,028) (24,382) (5,384) 65,212 2,584 50,922 (43,836) 90,708 (9,672) (107,457) 35,092 1,759 1,075,865 $ 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 $ See notes to consolidated fin Year Ended December 2015 In thousands 1,231,593 $ (361,814) 586 (62,556) 61,966 3,038 4,062 (1,571) 89.993 (34,668) (64,976) 25,404 495 (195) (1.177) 463 (340,950) 890,643 S 2014 1,047,505 (469,663) 6,075 (203,234) 37,518 5,445 60,588 88.387 (34,736) 32,111 (12,619) (698) 274 (490,552) 556,953 VF CORPORATION Consolidated Statements of Cash Flows 2016 1,074,106 S 79,644 281,577 67,762 17.283 89,005 (71.625) 104,357 (15,232) 47.102 (37,210) (9.553) (129,574) 28,904 (48,627) 1.477.919 (175,840) 115,983 (44.226) (8,331) (112,414) (421,069) (13,276) (6,807) Year Ended December 2015 In thousands 2014 Operating activities Net income 1,231,593 $ 1,047,505 Adjustments to reconcile net income to cash provided by operating activities: Impairment of goodwill and intangible assets 143,562 396,362 Depreciation and amortization 272.075 274,883 Stock-based compensation 73,420 104,313 Provision for doubtful accounts 12,006 (2,198) Pension expense in excess of (less than) contributions (208,709) (9,364) Deferred income taxes 7,088 (78,064) Loss on sale of businesses Other, net (34,784) 4,112 Changes in operating assets and liabilities: Accounts receivable (124,248) 854 Inventories (175,098) (130,540) Accounts payable 14.225 69,807 Income taxes 4,206 20,293 Accrued liabilities (14,505) 41,989 Other assets and liabilities 2,599 22,614 Cash provided by operating activities 1.203,430 1.762,066 Investing activities Capital expenditures (254,501) (234,077) Proceeds from sale of businesses, net of cash sold Software purchases (63,283) (67,943) Other, net (5,038) (27,235) Cash used by investing activities (322,822) (329.255) Financing activities Net (decrease) increase in short-term borrowings 432,262 4,761 Payments on long-term debt (3,975) (4,760) Payment of debt issuance costs (1475) Proceeds from long-term debt Purchases of treasury stock (732,623) (727,795) Cash dividends paid (565,275) (478,933) Proceeds from issuance of Common Stock, net of shares withheld for taxes 30,871 34,869 Cash used by financing activities (840,215) (1,171,858) Effect of foreign currency rate changes on cash and equivalents (66.683) (65,461) Net change in cash and equivalents 282,257 (26,290) 195,492 Cash and equivalents-beginning of year 945.605 971,895 776,403 Cash and equivalents-end of year $ 1.227.862 S 945,605 S 971,895 W The cash flows related to discontinued operations have not been segregated and are included in the Consolidated Statement of Cash Flows, The cash and equivalent 951,817 (1,000,468) (635,994) 48,918 (1.076,879) (6.369) VF CORPORATION Consolidated Statements of Stockholders' Equity Accumulated Other Additional Stock Pald-in Comprehensive Retained Capital Loss Earnings In thousands, except share amounts 440.310.370 $ 110,078 $ 2,746.590 S (211,720) $ 3.432.090 1,047,505 - (478,933) (12,037,000) (3,009) (724,786) 4,586,521 1.146 (44,123) (463,588) (99,683) 73,143 (424) 432,859,891 (702,272) - (10,036,100) 3,790,483 (361,228) fom 4,939 15,753 426,614,274 (15.932.075) 3.330.755 414,012.954 S 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 1111211 108,215 (2.509) 948 - - 106,654 111811112111811 1 246,596 2.993.186 199,489 (414) 3,192,675 (1,043.222) (3.983) 832 140,748 (76,410) 69,498 8.671 103.503 $ 3.333,423 S (1.041.463) 3,231,753 1.231.593 (565,275) (730,114) (39,226) 3,128,731 1,074.106 (635.994) (996,485) (24,900) 2.545.458 (a) 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, eg. 15.2%) Columbia Sportswear Company VF Corporation Return on common stockholders' equity de % % Debt to assets % %6 Return on assets % se (c) Compute the payout ratio for each company. (Round answers to 1 decimal places, eg. 15.2%) Columbia Sportswear Company VF Corporation Payout ratio % % (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