Columbia Sportswear Companys financial statements are presented in Appendix B. Click here to view Appendix B. The financial statements of VF Corporation are presented in Appendix C. Click here to view Appendix C. (a) For each company, calculate the following values for 2016. Assume Columbias weighted-average common shares outstanding was 69,683,000, and VFs was 416,103,000. (Hint: When calculating free cash flow, do not consider business acquisitions to be part of capital expenditures.) (Round all ratios to 1 decimal places, e.g. 15.2:1 or 15.2% and all other answers to thousands. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) (1) Working capital.
COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year Ended December 31, 2015 2016 2014 $ 2,377,045 $2,326,180 $2,100,590 1,252,680 1,145,639 1,266,697 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 2.48 $ 1.97 2.75 $ 2.72 2.45 1.94 70,162 69,807 71,064 70,681 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 69,683 70,632 See accompanying notes to consolidated financial statements See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) 2016 198,439 $ (2) 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.... Year Ended December 31, 2015 179,851 (6) (2,908) (34,887) (37,801) 194,795 142,050 4,678 4,382 190,117 $ 137,668 $ 843 (4,485) (3,644) See accompanying notes to consolidated financial statements 2014 141,859 10 7,751 (27,789) (20,028) 121,831 4,185 117,646 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 See accompanying notes to consolidated financial statements 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 1,415,813 $2,013,894 $1,846,153 COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2015 2016 198,439 $ 179,851 $ 60,016 56,521 4,805 5,098 (19,178) (11,709) 10,986 11,672 (7,873) 36,710 (40,419) (18,777) (103,296) (5,452) 4,411 (5,948) (2,524) 1,483 11,418 4,847 (2,017) 4,768 (10,994) 2,468 4,966 275,167 95,105 (21,263) (38,208) 21,263 64,980 (49,987) (69,917) 97 144 (49,890) (43,001) 62,885 53,429 (64,825) (51,479) 13,167 17,442 (5,117) (4,895) 7,873 (11) (70,068) (48,122) (43,547) (42,023) (91,245) (1,635) (4,647) (43,788) 413,558 369,770 $ 87,350 $ 1,115 4,698 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. Cash flows from investing activities: Net cash provided by operating 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. S Cash paid during the year for interest on note payable to related party.... Supplemental disclosures of non-cash investing activities: Capital expenditures incurred but not yet paid See accompanyi 181,619 369,770 551,389 $ 70,424 $ 1,049 2,710 consolidated financial statements 2014 141,859 54,017 481 (6,978) 11,120 (4,927) (31,478) (62,086) (4,869) 4,291 41,941 35,051 1,166 6,195 185,783 (188,467) (48,243) 112,895 (60,283) 71 (184,027) 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 53,958 838 7,196 CONSOLIDATED STATEMENTS OF EQUITY (In thousands) 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, net... 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 Columbia Sportswear Company Shareholders' Equity Common Stock Accumulated Other Comprehensive Income (Loss) Shares Retained Earnings Outstanding Amount 69,190 $ 52,325 $1,157,733 $ 137,173 (39,836) 19,136 5,119 11,120 (421) (15,000) 69,828 72,700 1,255,070 174,337 1,059 T ||| I I I (43,547) 835 12,547 7,925 11,672 (70,068) 34,776 1,385,860 191,898 35,360 $ 10 7,751 (27,288) 15,833 (1,386) 69,277 596 8,050 10,986 (11) 69,873 $ 53,801 $1,529,636 $ (22,617) See accompanying notes to consolidated financial statements (48,122) 1 112 11 11 Non- Controlling Interest (6) (2,908) (33,755) (1,132) (20,836) (2) 686 (2,465) Total 7,446 $1,252,864 4,686 141,859 10 7,751 (501) (27,789) (39,836) 19,136 5,119 11,120 (15,000) 1,355,234 179,851 (6) (2,908) (34,887) (43,547) 12,547 7,925 11,672 (70,068) 16,013 1,415,813 6,541 198,439 11,631 5,514 I ||| I 157 (2,020) 843 (4,485) (48,122) 8,050 10,986 (11) 20,691 $ 1,581,511 (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 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 a orized, 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 $ December In thousands, except share amounts. 2016 1,227,862 $ 1,197,678 1,569,325 298,233 4,293,098 939,650 1,839,698 1,736,959 929,882 9,739,287 $ 26,029 S 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 9,739,287 $ 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 $ 116,689 12,019,003 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 $ 2.82 $ (0.24) $ 2.58 $ 2.78 $ (0.24) $ 2.54 $ $ 1.5300 $ See notes to consolidated financial statements. 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 Year Ended December 2015 In thousands, except per share amounts 11,909,635 $ 123,020 12,032,655 6,235,699 4,009,029 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 $ 3.09 $ 2.90 $ 3.04 S (0.19) 2.85 $ 1.3300 $ (0.19) 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 $ See notes to consolidated financial statements. 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 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 $ 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 2014 Operating activities Net income 1,074,106 $ 1,047,505 Adjustments to reconcile net income to cash provided by operating activities: Impairment of goodwill and intangible assets 79,644 396,362 Depreciation and amortization 281,577 274,883 Stock-based compensation 67,762 104,313 Provision for doubtful accounts 17,283 (2,198) Pension expense in excess of (less than) contributions 89,005 (9,864) Deferred income taxes (71,625) (78,064) Loss on sale of businesses. 104,357 Other, net (15,232) 4,112 Changes in operating assets and liabilities: Accounts receivable 47,102 854 Inventories (37,210) (130,540) Accounts payable (9,553) 69,807 Income taxes (129,574) 20,293 Accrued liabilities 28,904 41,989 Other assets and liabilities (48,627) 22,614 Cash provided by operating activities 1,477,919 1,762,066 Investing activities Capital expenditures (175,840) (234,077) Proceeds from sale of businesses, net of cash sold 115,983 Software purchases (44,226) (67,943) Other, net (8,331) (27,235) Cash used by investing activities (112,414) (329,255) Financing activities Net (decrease) increase in short-term borrowings (421,069) 4,761 Payments on long-term debt (13,276) (3,975) (4,760) Payment of debt issuance costs (6,807) (1,475) Proceeds from long-term debt. 951,817 Purchases of treasury stock (1,000,468) (732,623) (727,795) Cash dividends paid (635,994) (565,275) (478,933) Proceeds from issuance of Common Stock, net of shares withheld for taxes 48,918 30,871 34,869 Cash used by financing activities (1,076,879) (840,215) (1,171,858) Effect of foreign currency rate changes on cash and equivalents (6,369) (66,683) (65,461) Net change in cash and equivalents 282,257 (26,290) 195,492 Cash and equivalents - beginning of year (2) 945,605 1,227,862 $ 971,895 945,605 $ 776,403 971,895 Cash and equivalents- end of year (a) (a) The cash flows related to discontinued operations have not been segregated and are included in the Consolidated Statements of Cash Flows. The cash and equivalents amount presented at December 2015 differs from cash and equivalents in the Consolidated Balance Sheet due to cash included in "Current assets of discontinued operations." lidated Ginonaial Year Ended December 2015 In thousands 1,231,593 $ 143,562 272,075 73,420 12,006 (208,709) 7,088 (34,784) (124,248) (175,098) 14,225 4,206 (14,505) 2,599 1,203,430 (254,501) (63,283) (5,038) (322,822) 432,262 VF CORPORATION Consolidated Statements of Stockholders' Equity Accumulated Other Additional Common Stock Paid-in Comprehensive Shares Amounts Capital Loss In thousands, except share amounts 440,310,370 $ 110,078 $ 2,746,590 $ (211,720) $ (12,037,000) (3,009) 4,586.521 1,146 (463,588) (99,683) 73,143 (424) 432,859,891 108,215 (702,272) (10,036,100) 3,790,483 (361,228) 4,939 15,753 (414) 426,614,274 (1,043,222) (15,932,075) (3,983) 832 3,330,755 (76,410) 69,498 8,671 414,012,954 $ 103,503 $ 3,333,423 $ (1,041,463) $ See notes to consolidated financial statements. 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 (2,509) 948 106,654 |||||||||||||||||||| 246,596 2,993,186 199,489 3,192,675 140,748 Retained Earnings. 3,432,090 1,047,505 (478,933) (724,786) (44,123) 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 Click here to view Appendix B. The financial statements of VF Corporation are presented in Appendix C. Click here to view Appendix C. (a) For each company, calculate the following values for 2016. Assume Columbia's weighted-average common shares outstanding was 69,683,000, and VF's was 416,103,000. (Hint: When calculating free cash flow, do not consider business acquisitions to be part of capital expenditures.) (Round all ratios to 1 decimal places, e.g. 15.2:1 or 15.2% and all other answers to thousands. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) (1) Working capital. Working capital Columbia Sportswear Company $ VF Corporation (2) Current ratio. Columbia Sportswear Company VF Corporation (3) Debt to assets ratio. Columbia Sportswear Company VF Corporation (4) Free cash flow. Columbia Sportswear Company VF Corporation eTextbook and Media $ Current ratio Debt to assets ratio Free cash flow $ :1 :1 % %
