Columbia Sportswear Company's financial statements are presented in Appendix B. Click here to view Appendix B. Financial statements of VF Corporation are presented in Appendix C. Click here to view Appendix C. (a) Based on the information in these financial statements, determine the following for each company. (Enter amounts in thousands. Show amounts that decrease cash flow with either a sign e.g.-15,000 or in parenthesis e.g. (15,000). Columbia Sportswear Company VF Corporation $ $ Total liabilities at December 31, 2016. Net property, plant and equipment at December 31, 2016. $ $ $ Net cash provided (used) by investing activities for 2016, $ $ $ Net income for 2016. Mac COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) . 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. Year Ended December 31, 2016 2015 2014 $ 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 1.97 1.94 2.72 2.45 69,683 70,162 69.807 Diluted 70,632 71,064 71,064 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 2016 $ 198,4395 179,851 S 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 S. (53), and (55), respectively). Unrealized gains (losses) on derivative transactions (net of tax effects of ($1.923), (5849) and ($1.507), respectively). Foreign currency translation adjustments (net of tax effects of ($347). (5760) 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 S 137.668 $ 117.646 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED BALANCE SHEETS (In thousands) December 31 2016 2015 ASSETS Current Assets Cash and cash equivalents... Short-term investments Accounts receivable, nct (Note 5). $ 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 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 2014 141.859 54,017 481 (6.978) 11,120 (4,927) COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31 2016 2015 Cash flows from operating activities: Net income $198.439 $ 179,851 $ Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 60,016 56,521 Loss on disposal or impairment of property, plant, and equipment.... 4,805 5,098 Deferred income taxes. (19.178) (11.709) Stock-based compensation 10.986 11,672 Excess tax benefit from employee stock plans. (7.873) Changes in operating assets and liabilities: Accounts receivable 36,710 (40,419) Inventories ... (18,777) (103,296) Prepaid expenses and other current assets (5.452) 4,411 Other assets. (5.948) (2,524) Accounts payable 1.483 11,418 Accrued liabilities 4.847 (2,017) Income taxes payable 4.768 (10,994) Other liabilities.... 2,468 4,966 Net cash provided by operating activities 275.167 95.105 Cash flows from investing activities: Acquisition of business, net of cash acquired Purchases of short-term investments (21.263) (38,208) Sales of short-term investments. 21.263 64.980 Capital expenditures... (49.987) (69.917) Proceeds from sale of property, plant, and equipment. 97 144 (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 (43.001) (184,027) 53,429 (51,479) 17,442 (4.895) 7.873 (70,068) (43,547) Net cash used in investing activities (49,890) Cash flows from financing activities: Proceeds from credit facilities 62,885 Repayments on credit facilities (64.825) Proceeds from issuance of common stock under employee stock plans 13,167 Tax payments related to restricted stock unit issuances. (5.117) Excess tax benefit from employee stock plans Repurchase of common stock (11) Cash dividends paid. (48,122) Proceeds from note payable to related party Net cash used in financing activities. (42.023) Net effect of exchange rate changes on cash (1.635) Net increase (decrease) in cash and cash equivalents. 181.619 Cash and cash equivalents, beginning of year 369,770 Cash and cash equivalents, end of year... S 551.389 Supplemental disclosures of cash flow information: Cash paid during the year for income taxes.. 70,424 $ Cash paid during the year for interest on note payable to related party 1.049 Supplemental disclosures of non-cash investing activities: Capital expenditures incurred but not yet paid 2.710 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF EQUITY (in thousands) 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 (91.245) (4,647) (43.788) 413.558 369,770 S 87,350 $ 1.115 53.958 838 4,698 7.196 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 S 35,360 $ 7.446 S 1.252.864 137,173 4,686 141,859 1 10 10 7.751 (27,288) (501) 7.751 (27.789) (39,836) (39.836) 1.059 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 (80.57 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 (50.62 per share). Issuance of common stock under employee stock plans, net 19,136 5.119 11.120 (15,000) 72,700 III III (421) 69,828 19,136 5,119 11.120 (15,000) 1.355.234 179.851 15,833 1.255,070 174,337 11.631 5,514 (6) (6) III (2,908) (33,755) (1.132) (2.908) (34.887) (43,547) (43,547) 835 12.547 12.547 (6) (6) 1111 (2,908) (33,755) (1,132) (2,908) (34,887) (43,547) (43,547) 835 12,547 7,925 11,672 (70,068) 34,776 111111 (1.386) 69.277 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 (50.69 per share).. Issuance of common stock under employee stock plans, net ... Stock-based compensation expense Repurchase of common stock BALANCE, DECEMBER 31, 2016 12,547 7.925 11,672 (70,068) 1,415,813 198.439 1,385,860 191,898 (20,836) 16,013 6,541 (2) 111 843 IL 686 (2,465) 157 (2,020) (48,122) (4.485) (48,122) 596 8,050 10.986 (11) 69.873 $ 53,801 $1.529,636 $ 8,050 10.986 (11) S 1,581,511 (22,617) $ 20,691 e at the company's website. VF CORPORATION Consolidated Balance Sheets December 2016 2015 In thousands, Encept 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 ASSETS Current assets Cash and equivalents Accounts receivablo, 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 s 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 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 9,739,2875 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 Total liabilities Stockholders' equity Preferred Stock, par value SI 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 103,503 3,333,423 (1.041.463) 2,545.458 4.940,921 9.739.2875 106,654 3.192.675 (1,043,222) 3.128,731 5,384,838 9,639,542 s See notes to consolidated financial statements. VF CORPORATION Consolidated Statements of Income 2016 2014 s Year Ended 2015 In thousands of per shares 11.902.314 $ 11.909,635 $ 116,689 123.020 12.019,003 12,032.655 11.757399 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), nel 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 6,196,335 4.243.798 79.614 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) 1.231.5935 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 s 1024) 2.585 1095 10.19 2905 307 1065 240 Cute Decoder Totalcaris per share Eacharelated C. Descope Tutela pared foted Cushdvidere 2.765 034) 256S 1330 1045 019 2355 TRIO 3.00 1064 22 T105 See on.comded fancial VY CORPORATION Chaalai maarbai me 1,0941065 1.231.99 $ 11347.50 Net Other comprime wher iyya 32.00) CM 36 015 2012141 37318 65.212 2554 30:922 3.445 61.966 303 400 CISTI 0,706 Defined on poste Coachines and medias Adford Amedeemed services Recent walls from walement change Las con effect Derivative financiare Oai ining rin year Laalaandipat Related Los con effect Marie Gide) writing Lassione fect Recensione Locus 1995 046659 164976 25,404 107,4571 5092 (34.736) 12.111 (12.619 995 195) (1.17) (9) 274 Other comprehensive income (lon) Comprehensive income 1.759 14075,8655 (340,950) 2,6135 (90552) 356,953 See notes to consolidated financial statements VF CORPORATION Consolidated Statements of Cash Flows Year Ended December 2015 In thousands 2016 2014 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 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 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) 14.225 4,206 (14,505) 2.599 1.203.430 854 (130.540) 69.807 20.293 41.989 22.614 1.762,066 Investing activities Capital expenditures (175,840) (254,501) (234,077) Proceeds from sale of businesses, net of cash sold 115,983 Software purchases (44.226) (63,283) (67.943) Othernet (8,331) (5,038) (27.235) Cash used by investing activities (112,414) (322,822) (329,255) Financing activities Net (decrease) increase in short-term borrowings (421,069) 432,262 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 (1.0XX),468) (732,623) (727.795) Cash dividends paid (635.994) (565,275) (478,933) Proceeds from issuance of Common Stock, nel 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 945,605 971,895 776,403 Cash and equivalents -- end of year 1.227,862 5 945,605 $ 971,895 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." See notes to consolidated financial statements 1 VF CORPORATION Consolidated Statements of Stockholders' Equity TO 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 Accumulated Common Stock Additional Other Paid in Comprehensive Retained Shares Amounts Capital Loss Earnings In thousands, except share amounts 440,310,370 $ 110,078 $ 2.746,590 $ (211,720) S 3,432,090 1,047,505 (478,933) (12,037,000) (3,009) (724,786) 4,586,521 1,146 246,596 (44,123) (463,588) (99,683) 73.143 (424) 432,859,891 108,215 2,993,186 (702,272) 3.231.753 1.231.593 (565,275) (10,036,100) (2,509) (730,114) 3,790,483 948 199.489 (39.226) (361,228) 4.939 15,753 (414) 426,614,274 106,654 3,192,675 (1.043.222) 3.128.731 IIIIIIIIIIIII PULSU 1.146 4,586,521 (44.123) 246,596 (463.588) (99,683) 73.143 (424) (702.272) 432.859,891 108,215 2,993,186 3.231.753 1.231.593 (565,275) (730,114) (39.226) (10,036,100) 3.790,483 (2,509) 948 199,489 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 (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) 832 140,748 (76,410) 69,498 8,671 3,333.423 $ (1,041,463) S 414,012,954 S 103,503 $ 2.545.458 See notes to consolidated financial statements