EPORTING AND ANALYSIS YK11-1. Financial Reporting Problem: Columbia Sportswear Company The financial statements for the Columbia Sportswear Company can be found in Appendix A at the end of this book. Required Answer the following questions: a. How many shares of common stock are authorized at the end of 2014? b. What percentage of the common shares authorized are outstanding at the end of 2014? c. Does Columbia Sportswear have any preferred shares outstanding at the end of 2014? d. How many shares of common stock did Columbia Sportswear repurchase in 2014? What was the dollar amount of this repurchase? What amount of dividends per share did Columbia Sportswear report for 2014? 2013? 2012? e. A-3 Appendix A Columbia Sportswear Company FINANCIAL STATEMENTS COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED BALANCE SHEETS December 31 2013 ASSETS Current Assets s 413,558 S 437489 91,755 Cash and cash cquivalents Short-term investments Accounts receivable, net (Note 6) Inventories Deferred income taxes (Note 11) Prepaid 27,267 344,390 384,650 57,001 39,175 329,228 52,041 and other current assets 1,266,041 1,250,472 279,373 Total current assets 291,563 143,731 36,288 roperty, plant, and equipment, net (Note 7) Intangible assets, net (Notes 3, 8) Goodwill (Notes 3, 8) Other non-current assets 4.438 68,594 $ 1,792,209 S 1,605,588 Total assets LIABILITIES AND EQUITY Current Liabilities: s 214,275 s 173,557 120,397 14,3887,251 49 ccounts payable Accrued liabilities (Note 10) Income taxes payable (Note 11) Deferred income taxes (Note 11) 144,288 169 373,120 301,2 Total current liabilities 15,728 Note payable to related party (Note 22) 35,435 long-term liabilities (Notes 12, 13) 9,388 3,304 7959 13,984 Income taxes payable (Note 11) ferred income taxes (Note I1 436,975 32,724 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 72,700 52,325 and outstanding (Note 15) 1,255,070 1,157,733 35.360 Accumulated other comprehensive income (Note 18) 15,833 1,343,603 1,245,418 7,446 Total Columbia Sportswear Company shareholders' equity Non-controlling interest (Note 5) 11.631 Total equity Total liabilities and equity 1,355,234 1,252,864 S 1,792,209 $ 1,605,588 See accompanying notes to consolidated financial statements Appendix A Columbia Sportswear Company A-4 COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year Ended December 31 Net sales Cost of sales Gross profit 2014 $2,100,590 $1,684,996 $1,669,563 1,145,639 941,341 953,169 954,951 743,655 716,394 763,063 625,656 596,635 ling, general and administrative expenses Net licensing income Income from operations 198,844 131,794 133,528 1,004 (1,053) Interest expense on note payable to related party (Note 22) Other non-operating expense Income before income tax Income tax expense (Note 11) Net income Net income (loss) attributable to non-controlling interest Net income attributable to Columbia Sportswear Company (274) 198,521 131,426 133,907 (56,662) (37823) 34.048) 141,859 93,603 99,859 S 137.173 S 94.341 S 99,859 ings per share attributable to Columbia Sportswear Company (Note 17): Basic S 1.97$ 1.37 S 1.48 Weighted average shares outstanding (Note 17): 67,680 69,434 68,264 Basic Diluted 70,681 Appendix A Columbia Sportswear Company COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWs In thousands) Year Eeded Deewenber 31, 141,859 S 93,603 99,859 Cash flows from operating activities: Net income 54,017 40,871 481 9,344 1,582 (6,978) 8,818 11,120 8,878 7833 4.927) (1532) (1,016) Adjustments to reconcile net income to net cash provided by operating activiti and amortization Loss on disposal or impairment of property, plant, and equipment Deferred income taxes 7,140 Excess tax benefit from employee stock plans ges in operating assets and liabilities: Accounts receivable (31,478) 27,442 18,16 (62,086) 34,089|: 2951 (4,869)--5,166 (2,025) Prepaid expenses and other current assets Other assets 41,941 31.711 (12.330) 35,051 2210 (5,199) Accounts payable 5,534 (11,052) 2356 3,126 1,166 Income taxes payable Other liabilities 195 185,783 274,275 148,668 Net cash provided by operating activities Cash flows from investing activities: (188,467) Acquisition of business, net of cash acquired Sales of short-term investments Proceeds from sale of property, plant, and equi (48,243) (125,390) (83969) 112,895 78,636 42.319 (60,283) (69 es of short-term investments 7,099 (184,027) (116,086) (85,042) Net cash used in investing activities Cash flows from financing activities: Proceeds from credit facilities 52,356 69,136 100,654 (32,205) (69,292) (100,498) 22,277 19,537 14,600 (3,141) (2,291) (1,486) Repayments on credit facilities Proceeds from issuance of common stock under employce stock plans Tax payments related to restricted stock unit issuances Excess tax benefit from employee stock plans Repurchase of common stock (15,000) 16,072 (206) ceeds from note payable to related party Capital contribution from non-controlling interest 8,000 (39,836) (31,298) (29,780 (14,550) (4,676) (15,700) (11,137) (6,805) 1,82 (23,931) 146,708 49,747 437.489 290,781 241 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 Supplemental disclosures of cash flow information: Cash paid during the year for income taxes s 53,958 22,771 S 43,696 Supplemental disclosures of non-cash investing activities Capital expenditures incurred but not yet paid 5,313 7,196 5,195 See accompanying notes to consolidated financial statements Appendix A Columbia Sportswear Company A-6 COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF EQUITY (In thousands) Celumbia Sportswear C BALANCE, JANUARY 1, 2012 67,276 3037 $1,024,6115 6897 $ 1,074,545 99,859 holding losses on available-for- Unrealized holding losses on derivative transactions, net (4,745) (4,745) (29,780) 13,114 -4,518 Cash dividends (30.44 per share) (29,780) of common stock under employee stock 882 13,114 Tax adjustment from stock plans 1,036 1,036 Repurchase of common stock BALANCE, DECEMBER 31, 2012 Net income (loss) (206) -1,166.167 93,603 (206) 68,150 24,814 1,094,690 (8) 94,341 (738) Unecalized holdi Unrealized holding losses on derivative Foreign currency translation adjustment, net ng gains on available-for-sale (1.261) (10,045) 184 (9,861) 31.298) 17,246 8,000 8,000 dividends ($0.46 per share) Issuance of common stock under employee stock 1040 17.246 plans, net 1,387 8,878 69,190 52,325 1,157,733 Tax adjustment from stock planss 7,446 1,252,864 4,686 141,859 BALANCE, DECEMBER 31, 2013 137,173 income Other comprehensive income (loss) Unrealized holding gains on available-for-sale 10 securities, net Unrealized holding gains on derivative 7,751 789) (39,836) transactions, net (39,836) Cash dividends (50.57 per share) of common stock under employee stock 1,059 19,136 Tax adjustment from stock plans Stock-based compensation expense Repurchase of common stock 11,120 (15,000) 11,631 S 1,355.234 11,120 69,828 S 72,700 $1.255,070 s15,833 ALANCE, DECEMBER 31, 2014 See accompanying notes to consolidated financial statements