Columbia Sportswear Company's financial Statements
VF Corporation Financial Statements
Columbia Sportswear Company's 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 2014. (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 $ 892921 VF Corporation 2565613 (2) Current ratio. Current ratio 3.39 Columbia Sportswear Company VF Corporation 2.58 (3) Debt to assets ratio. Debt to assets ratio Columbia Sportswear Company 24.38 VF Corporation 100 (4) Free cash flow. Free cash flow Columbia Sportswear Company $ VF Corporation COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) 2012 $ Year Ended December 31, 2014 2013 2,100,590 $ 1,684,996 $ 1,145,639 941.341 954,951 743,655 763,063 625,656 6,956 13,795 198,844 131,794 1,004 503 (1,053) (274) (871) 198,521 131,426 (56,662) (37,823) 141,859 93,603 4,686 (738) 137,173 $ 94,341 $ 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 11) Net income Net income (loss) attributable to non-controlling interest Net income attributable to Columbia Sportswear Company Earnings per share attributable to Columbia Sportswear Company (Note 17): Basic Diluted Weighted average shares outstanding (Note 17): Basic Diluted 1,669,563 953,169 716,394 596,635 13,769 133,528 379 133.907 (34,048) 99,859 $ 99,859 $ $ $ 1.97 1.94 1.37 1.36 1.48 1.46 69,807 70,681 68,756 69,434 67,680 68,264 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED BALANCE SHEETS (In thousands) December 31, 2014 2013 ASSETS Current Assets: Cash and cash equivalents $ 437,489 Short-term investments 91,755 306,878 Accounts receivable, net (Note 6) Inventories Deferred income taxes (Note 11) 329.228 52,041 Prepaid expenses and other current assets 413,558 27,267 344,390 384,650 57,001 39,175 1,266,041 291,563 143,731 68,594 22,280 1,792,209 33,081 1,250,472 279,373 36,288 14,438 25,017 1,605,588 $ $ $ $ 214,275 144,288 14,388 169 373, 120 15,728 35,435 9,388 3,304 436,975 173,557 120,397 7.251 49 301,254 Total current assets Property, plant, and equipment, net (Note 7) Intangible assets, net (Notes 3,8) Goodwill (Notes 3,8) Other non-current assets Total assets LIABILITIES AND EQUITY Current Liabilities: Accounts payable Accrued liabilities (Note 10) Income taxes payable (Note 11) Deferred income taxes (Note 11) Total current liabilities Note payable to related party (Note 22) Other long-term liabilities (Notes 12, 13) Income taxes payable (Note 11) Deferred income taxes (Note 11) Total liabilities Commitments and contingencies (Note 14) Shareholders' Equity: Preferred stock; 10,000 shares authorized; none issued and outstanding Common stock (no par value); 250,000 shares authorized; 69,828 and 69,190 issued and outstanding (Note 15) Retained earnings Accumulated other comprehensive income (Note 18) Total Columbia Sportswear Company shareholders' equity Non-controlling interest (Note 5) Total equity Total liabilities and equity 29,527 13,984 7,959 352,724 72,700 1,255,070 15,833 1,343,603 11,631 1,355,234 1,792,209 52,325 1,157,733 35,360 1,245,418 7,446 1.252.864 1,605,588 $ $ See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Year Ended December 31, 2014 2013 141.859 $ 93,603 $ 2012 99,859 $ 10 3 (7) 7,751 (1,261) (4,745) Net income Other comprehensive loss: Unrealized holding gains (losses) on available-for-sale securities (net of tax (expense) benefit of ($5), ($2), and $4, respectively) Unrealized gains (losses) on derivative transactions (net of tax (expense) benefit of ($1,507), $9 and ($171), respectively) Foreign currency translation adjustments (net of tax benefit (expense) of $1,023, ($191) and ($59), respectively) Other comprehensive loss Comprehensive income Comprehensive income (loss) attributable to non-controlling interest Comprehensive income attributable to Columbia Sportswear Company (27.789) (9,861) (11,119) 82,484 (554) 83,038 4,518 (234) 99,625 (20,028) 121,831 4,185 $ 117,646 $ $ 99,625 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2013 2014 2012 Cash flows from operating activities: $ 141,859 $ 93,603 $ 99.859 54,017 481 (6,978) 11,120 (4,927) 40,871 9.344 8,818 8,878 (1,532) 40,892 1,582 7,140 7,833 (1,016) 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: (31,478) (62,086) (4,869) 4,291 41,941 35,051 1,166 6,195 185,783 27,442 34,089 5,166 (4.215) 31,711 12,210 5,534 2,356 274,275 18,166 2.951 (2,025) (1.259) (12,330) (5,199) (11,052) 3,126 148,668 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: (188,467) (48,243) 112,895 (60,283) 71 (184,027) (125,390) 78,636 (69,443) 111 (116,086) (83.969) 42,319 (50,491) 7,099 (85,042) 52,356 (52,205) 22,277 (3,141) 4,927 (15,000) 16,072 69,136 (69,292) 19.537 (2.291) 1,532 - 100.654 (100.498) 14,600 (1,486) 1,016 (206) 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 Proceeds from note payable to related party Capital contribution from non-controlling interest Cash dividends paid 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 (39,836) (14,550) (11,137) (23,931) 437,489 413,558 8,000 (31,298) (4,676) (6,805) 146,708 290,781 437,489 (29,780) (15,700) 1,821 49,747 241,034 290,781 $ $ $ $ 53,958 $ 22,771 $ 43,696 Supplemental disclosures of cash flow information: Cash paid during the year for income taxes Supplemental disclosures of non-cash investing activities: Capital expenditures incurred but not yet paid 7,1965,1955,313 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF EQUITY (In thousands) Columbia Sportswear Company Shareholders' Equity Common Stock Shares Outstanding Amount Non- Controlling Interest Accumulated Other Comprehensive Income $ 46,897 - $ Retained Earnings $ 1,024611 99,859 $ 67,276 - $ 3,037 - - - Total 1,074,545 99,859 BALANCE, JANUARY 1, 2012 Net income Other comprehensive income (loss): Unrealized holding losses on available-for-sale securities, net Unrealized holding losses on derivative transactions, net (4,745) 4,518 (29,780) - 882 - - (8) 68,150 - - (4,745) 4,518 (29,780) 13,114 1,036 7,833 (206) 1.166,167 93,603 13,114 1,036 7,833 (206) 24,814 - 1,094,690 94341 46.663 - - (738) - (1.261) (10,045) (31,298) 1,040 17.246 Foreign currency translation adjustment, net Cash dividends ($0.44 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, 2012 Net income (loss) Other comprehensive income (loss): Unrealized holding gains on available-for-sale securities, net Unrealized holding losses on derivative transactions, net Foreign currency translation adjustment, net Cash dividends ($0.46 per share) Issuance of common stock under employee stock plans, net Capital contribution from non-controlling interest Tax adjustment from stock plans Stock-based compensation expense BALANCE, DECEMBER 31, 2013 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 - 8,000 (1,261) (9,861) (31,298) 17,246 8,000 1,387 8,878 1.252,864 141,859 ILIT 1387 8,878 52.325 - 69,190 - 35.360 1,157,733 137,173 7,446 4,686 7,751 (27.288) - (501) (39,836) 1,059 19,136 5,119 11,120 (15,000) 72,700 10 7,751 (27,789) (39.836) 19,136 5,119 11,120 (15,000) 1,355,234 - (421) 69,828 $ $ 1,255,070 $ 15,833 $ 11,631 $ VF CORPORATION Consolidated Balance Sheets December 2014 2013 In thousands, except share amounts $ 971,895 1,276,224 1,482,804 154,285 300,646 4,185,854 942,181 2,433,552 1,824,956 593,597 $ 9,980,140 $ 776,403 1,360,443 1,399,062 169,321 177,753 3,882,982 932,792 2,960,201 2,021,750 517,718 $ 10,315,443 $ S ASSETS Current assets Cash and equivalents Accounts receivable, less allowance for doubtful accounts of $26,694 in 2014 and $45,350 in 2013 Inventories Deferred income taxes Other current assets Total current assets Property, plant and equipment Intangible assets Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Short-term borrowings Current portion of long-term debt Accounts payable Accrued liabilities Total current liabilities Long-term debt Other liabilities Commitments and contingencies Stockholders' equity Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding in 2014 and 2013 Common Stock, stated value $0.25; shares authorized, 1,200,000,000; 432,859,891 shares outstanding in 2014 and 440,310,370 in 2013 Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 21,822 3,975 690,842 903,602 1,620,241 1,423,581 1,305,436 18,810 5,167 638,732 905,292 1,568,001 1,426,829 1,243,575 108,215 2,993,186 (702,272) 3,231,753 5,630,882 $ 9,980,140 110,078 2,746,590 (211,720) 3,432,090 6,077,038 $ 10,315,443 See notes to consolidated financial statements VF CORPORATION Consolidated Statements of Income Year Ended December 2014 2013 2012 In thousands, except per share amounts $ 12,154,784 $ 11,302,350 $ 10,766,020 127,377 117,298 113,835 12,282,161 11,419,648 10,879,855 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 5,931,469 3,841,032 5,817,880 3,596,708 Operating income Interest income Interest expense Other income (expense), net Income before income taxes Income taxes Net income Net income attributable to noncontrolling interests Net income attributable to VF Corporation common stockholders Earnings per common share attributable to VF Corporation common stockholders Basic Diluted Cash dividends per common share 6,288,190 4,159,885 396,362 10.844,437 1,437,724 6,911 (86,725) (5,544) 1,352,366 304,861 1,047,505 9,772,501 1,647,147 4.141 (84,773) (4,025) 1,562,490 352,371 1,210,119 9,414,588 1,465,267 3,353 (93,605) 46,860 1,421,875 335,737 1,086,138 (139) 1,085,999 $ 1,047,505 $ 1,210,119 $ $ 2.42 $ $ 2.76 2.71 0.9150 2.47 2.43 0.7575 $ 1.1075 $ $ See notes to consolidated financial statements. VF CORPORATION Consolidated Statements of Comprehensive Income 2014 2012 Year Ended December 2013 In thousands $1,210,119 $1,047,505 $1,086,138 (469,663) 6,075 109.463 1,252 37,648 9,443 (203,234) 37,518 5,445 60,588 146,746 85,356 1,270 (90,285) (173,959) 69,744 3,357 37,013 Net income Other comprehensive income (loss) Foreign currency translation 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 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 Other comprehensive income (loss) Comprehensive income including noncontrolling interests Comprehensive (income) loss attributable to noncontrolling interests Comprehensive income attributable to VF Corporation 88,387 (34,736) 32,111 (12,619) (8,133) 3,196 (12,169) 4,782 (9,555) 3,976 (15,883) 6,199 (401) (698) 274 (490,552) 556,953 1,239 (542) 242,175 1,452,294 (32,418) 1,053,720 (139) $1,053,581 $ 556,953 $1,452,294 See notes to consolidated financial statements. VF CORPORATION Consolidated Statements of Cash Flows 2014 Year Ended December 2013 In thousands 2012 $ 1,047,505 $1,210,119 $1,086,138 396,362 172,443 42,061 60,379 104,313 (2,198) (9,864) (78,064) 157,810 45,787 49,676 87,118 15,756 (28,102) (12,370) 148,969 47,929 41,058 92,814 19,264 (20,198) (20,797) (44,485) (40,931) 4,112 14 14,306 Operating activities Net income Adjustments to reconcile net income to cash provided by operating activities: Impairment of goodwill and intangible assets Depreciation Amortization of intangible assets Other amortization Stock-based compensation Provision for doubtful accounts Pension expense less than contributions Deferred income taxes Gain on sale of businesses Other, net Changes in operating assets and liabilities, net of purchases and sales of businesses: Accounts receivable Inventories Accounts payable Income taxes Accrued liabilities Other assets and liabilities Cash provided by operating activities Investing activities Capital expenditures Business acquisitions, net of cash acquired Proceeds from sale of businesses Software purchases Other, net Cash used by investing activities Financing activities Net increase (decrease) in short-term borrowings Payments on long-term debt Purchases of treasury stock Cash dividends paid Proceeds from issuance of Common Stock, net of shares withheld for taxes Tax benefits of stock-based compensation Other, net 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 854 (130,540) 69,807 (44,144) 41,989 22,614 1,697,629 (155,053) (47,240) 75,073 16,628 84,472 (7,939) 1,506,041 (111,571) 87,620 (74,294) 26.213 (35,912) 73,183 1,275,000 (234,077) (271,153) (67,943) (27,235) (329,255) (251,940) (1,750) 72,519 (30,890) (8,230) (220,291) (53,989) (25,131) (350,273) 4,761 (4,760) (727,795) (478,933) 34,869 64,437 9,032 (404.872) (282,024) (402,136) 48,029 48,140 (269,010) (2,776) (307,282) (333,229) 62,770 47,213 (201) (802,515) 4,039 256,233 341,228 $ 597,461 (1,107,421) (65,461) 195,492 776,403 $ 971,895 (983,831) 7,005 178,942 597,461 $ 776,403 See notes to consolidated financial statements. VF CORPORATION Consolidated Statements of Stockholders' Equity VF Corporation Stockholders Accumulated Common Additional Other Stock Paid-in Comprehensive Shares Amounts Capital Capital Income (Loss) In thousands, except share amounts 442,227,924 $110,557 $2,316,107 $ (421,477) Retained Earnings Non- controlling Interests $ (816) 139 $2,520,804 1,085,999 (333,229) (297,692) (34,435) (8,072,920) 6,663,932 (2,018) 1,666 211,761 47,091 (63,845) (15,263) (401) $ (453,895) 440,818,936 $110,205 $2,527,868 $ Balance, December 2011 Net income Dividends on Common Stock Purchase of treasury stock Stock-based compensation, net Disposition of noncontrolling interests Foreign currency translation Defined benefit pension plans Derivative financial instruments Marketable securities Balance, December 2012 Net income Dividends on Common Stock Purchase of treasury stock Stock-based compensation, net Foreign currency translation Defined benefit pension plans Derivative financial instruments Marketable securities Balance, December 2013 Net income Dividends on Common Stock Purchase of treasury stock Stock-based compensation, net Foreign currency translation Defined benefit pension plans Derivative financial instruments Marketable securities Balance, December 2014 $2,941,447 1,210,119 (402,136) (280,408) (36,932) (6,849,160) 6,340,594 (1,712) 1,585 218,722 110,715 143,087 (12,324) 697 $ (211,720) 440,310,370 $110,078 $2,746,590 $ $3,432,090 1,047,505 (478,933) (724,786) (44,123) (12,037,000) 4,586,521 (3,009) 1,146 246,596 (463,588) (99,683) 73,143 (424) $(702,272) 432,859,891 $108,215 $2,993,186 $3,231,753
