Expand Your Critical Thinking 5-2

>The financial statements of Columbia Sportswear Company are presented in the first 7 figures below.

> The financial statements of VF Corporation are presented in the figures below-

Answer the following questions for each company.

P.S- For the drop-down option boxes, the options are INCREASED or DECREASED.

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 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 Year Ended December 31. 2014 2013 2012 $ 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 6,956 13,795 13,769 198.844 131,794 133,528 1,004 503 379 (1.053) (274) (871) 198,521 131,426 133.907 (56,662) (37,823) (34,048) 141.859 93.603 99.859 4.686 (738) $ 137.173 $ 94,341 $ 99,859 1.37 1.48 1.97 $ 1.94 1.36 1.46 69.807 70,681 68,756 69,434 67,680 68,264 See accompanying notes to consolidated financial statements CONSOLIDATED BALANCE SHEETS (In thousands) December 31. 2014 2013 413.5585 27.267 91.755 3-43 306.878 329.228 52.041 384,650 57,001 39.175 1.266,041 291,563 143,731 68.594 22.280 1.792,2095 33.081 1.250.472 279.373 36.32 14,438 25.017 1.605.59 ASSETS Current Assets Cash and cash equivalents Short-term investments Accounts receivable. set (Note 6 Inventories Deferred income taxes (Note II) Prepaid expenses and other current assets 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 inconte 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 one issued and outstanding Common stock (no par values: 250.000 shares authorized: 09.828 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 214,2755 144.288 173,557 120,397 7.251 19 301.254 169 373.120 15.728 35,435 29 520 13.984 7.990 352.724 3,304 436,975 72.700 1.255070 15.83 1.343,603 11.631 1.355.224 1,792.2095 $2325 1.157.733 35.160 1.245,418 7416 1.252.861 $ COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands Year Ended December 31. 2014 2013 2012 Net income $141.859 5 93.603 5 99.859 Other comprehensive loss Unrealized holding gains (losses) on available-for-sale securities (net of tax (expense) benefit of ($5), (S2), and S4, respectively) 10 Unrealized gains (losses) on derivative transactions (net of tax (expense) benefit of ($1.507.89 and ($171), respectively) 7.751 (1.261) (4.745) Foreign currency translation adjustments (net of tax benefit (expense) of $1,023, ($191) and (559), respectively) (27.789) (9.861) 4.518 Other comprehensive loss (20.028) (11.119) (234) Comprehensive income 121.831 82,484 99,625 Comprehensive income (loss) attributable to non-controlling interest 4,185 (554) Comprehensive income attributable to Columbia Sportswear Company $ 117,646 $ 83,038 S 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 $ 141.859 $ 93 603 $9.859 40.892 1.582 34.017 481 (6,978) 11.120 (4.927) 40.871 9.344 8.818 8.878 (1 532) 7.140 7833 (1,016) Cash flows from operating aetivities: 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 annet Other assets Accounts payable Accrued liabilities Income taxes payable Other liabilities Net cash provided by operating activities Cash flows from investing 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 (31478) (62.066) (4.869) 4.291 41941 35051 1.166 6,195 185,783 27442 34.189 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 (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 69.136 (69.292) 19.537 100.654 (100.498) 14.600 Tax payments related to restricted stock unit instances Excess tx 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 (3.141) (2.291) (1486) 4.927 1.532 1,016 (15,000) (206) 16,072 8.000 (39.836) (31.298) (29,780) (14.550) (4.676) (15.700) (11.137) (6.805) 1821 (23.931) 146.708 49,747 437 489 290,781 241,034 $ 413.558 $ 437 489 $ 290,781 53.958 S 22.771 43.86 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 7.196 5.195 5313 See accompanying notes to consolidated financial statements Non- Controlling Interest 1.074.545 99859 (4.745) 11 4.518 COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF EQUITY (In thousands) Columbia Sportswear Company Shareholders' Equity Common Stock Shares Accumulated Other Retained Comprehensive Outstanding Amount Earnings Income BALANCE, JANUARY 1, 2012 67.276 $ 3.6037 $ 1.024.611 S 46,897 Net income 99859 Other comprehensive income (loss): Unrealized holding losses on available for sale securities.net Unrealized holding losses on derivative transactions, net (4.745) Foreign currency translation adjustment.net 4.518 Cash dividends (S0.44 per share) (29,780) Issuance of common stock under employee stock plans, net 882 13.114 Tax adjustment from stock plans 1.036 Stock-based compensation expense 7833 Repurchase of common stock (8) (206) BALANCE, DECEMBER 31, 2012 68,150 24814 1.094,690 46.663 Net income (loss) 94.341 Other comprehensive income (loss): Unrealized holding gains on available-for-sale securities.net Unrealized holding losses on derivative transactions net (1.261) Foreign currency translation adjustment.net (10.045) Cash dividends (S0.46 per share) (31.298) Issuance of common stock under employee stock plans.net 1.040 17.246 Capital contribution from non-controlling interest Tax adjustment from stock plans 1.387 Stock-based compensation expense 8878 BALANCE, DECEMBER 31, 2013 69.190 52.325 1.157.733 35.360 (29.780) 13.114 1.036 7833 (206) 1.166,167 93.603 (738) 3 184 (1.261) (9.861) (31.298) 17.246 8.000 8.000 1.387 8878 1.252.864 7.446 137.173 - 4.686 141 859 10 11 7,751 (27,288) (501) 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 (39.836) 1.059 19.136 5.119 11.120 (421) (15.000) 69.828 $ 72,700 S 1.255.070 $ 10 7,751 (27,789) (39836) 19.136 5.119 11.120 (15,000) 1355.234 158335 11.631 See accompanying notes to consolidated financial statements VF CORPORATION Consolidated Balance Sheets December 2014 2013 In thousands spl share amants $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 1,360443 1.399,062 169,321 177.753 3,882.982 932,792 2.960,201 2.021.750 517.718 10.315.443 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 Sl; 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 eamings 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 905292 1,568,001 1.426,829 1,243,575 108.213 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 S 10,315,443 See notes to consolidated financial statements VF CORPORATION Consolidated Statements of Income 2013 Year Ended December 2014 2012 In thousands, except per share amounts $ 12.154.784 S 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 $ 2.38 1.1075 S 2.76 2.71 0.9150 2.47 2.43 0.7575 s 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 (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 146,746 85,356 1,270 (90.285) (8,133) 3.196 (12.169) 4.782 (9,355) 3.976 (15,883) 6.199 88,387 (34.736) 32,111 (12,619) (698) 274 (490,552) 556,953 (401) 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 14,306 Operating activities Net income Adjustments to reconcile net income to cash provided by operating activities: Impaiment 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 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) (53.989) (25.131) (350,273) (251.940) (1,750) 72,519 (30,890) (8.230) (220.291) 329.23 (330,413 4.761 (4.760) (727,795) (478,933) 34,869 64.437 9,032 (404,872) (282,024) (402,136) 48,029 48,140 used by inve 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 See notes to consolidated financial statements. (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 VF CORPORATION Consolidated Statements of Stockholders' Equity VF Corporation Stockholders Accumulated Common Additional Other Stock Paid in Comprehensive Amounts Capital Income (Loss) In thousands, except share amounts 442,227,924 $110,557 $2,316,107 $ (421,477) Non controlling Interests Retained Earnings Shares $ (816) 139 $2,520.804 1,085.999 (333.229) (297.692) (8,072.920) 6,663,932 (2,018) 1,666 211,761 (34,435) 677 47,091 (63,845) (15.263) (401) $ (453,895) Balance. 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 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 S (211,720) 440,310,370 S110,078 $2,746,590 S3,432,090 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 53.231.753 What is the balance in cash and cash equivalents at December 31, 2014? (Enter the amounts in thousands.) Cash and cash equivalents Columbia Sportswear VF Corporation $ What percentage of total assets does cash represent for each company over the last 2 years? (Round answers to 1 decimal place, e.g. 15.2%.) Cash as percentage of total assets 2014 2013 Columbia Sportswear % % VF Corporation % % Has it changed significantly for either company? Cash as a percentage of total assets eby % for Columbia Sportswear and by % for VF Corporation. How much cash was provided by operating activities during 2014? (Enter the amounts in thousands.) Cash was provided by operating activities Columbia Sportswear VF Corporation $