EYK9-1 and EYK9-2 page 457
this the most clear they can get
Chapter 9 Accounting for Long-Lived and intangible Assets SPORTIN AND ANALYSIS 457 EXTENDING YOUR KNOWLEDGE EYK9-1. Fancial R ancial Reporting Problem: Columbia Sportswear Company The financial statements for Columbia Sportswear Company can be found in Appendix A at the end of this book Required COLUMBIA SPORTSWEAR COMPANY Answer the following questions. What was the total cost of Columbia's property, plant, and equipment at December 31, 2017 h. What was the total accumulated depreciation at December 31, 2017? What percentage of the total cost of property, plant, and equipment at December 31.0 was from building and improvements? How much depreciation and amortization expense was taken in 2017? e. What amount of property, plant, and equipment purchases (capital expenditures) occurred in COLUMBIA SPORTSWEAR COMPANY UNDER ARMOUR 2017? VK9.2. Comparative Analysis Problem: Columbia Sportswear Company vs. Under Armour, Inc. The financial statements for the Columbia Sportswear Company can be found in Appendix A at the end of this book, and the financial statements of Under Armour, Ine, can be found in Appendix Appendix B (the complete annual report is available on this book's Website). Required a. Calculate the following ratios for Columbia Sportswear and for Under Armour, Inc. for 2017: 1. Return on assets 2. Asset turnover b. Comment on your findings. -3. Business Decision Problem I vle Fleming nresident of Fleming. Ine wants van te melve hie FINANCIAL STK IAL STATEMENTS COLUMNA SPORTSWEAR COMPANY CONSOLIDATED BALANCE SEXTS hand cash equivalents (Note 20 Short-term investments (Note 201 unts receivable, net (Note 5 Inventories 457 ad expenses and other current Tocal current assets ry, plant, and equipment, net (Nede weible assets, bet (Note 7) Goodwill (Note 7) Pred income taxes (Note 10) Other non-current assets Total assets LIABILITIES AND FOUITY 252. 15.00 Current Liabilities: Accounts payable Accrued liabilities (Note 9) Income taxes payable (Note 10) Total current liabilities Note payable to related party (Note 21) Other long-term liabilities (Notes 11, 12) Income taxes payable (Note 10) Deferred income taxes ( 10) Total liabilities Comitments and contingencies Note 13) 48.735 104 560,643 432.383 Shareholders' Equity 1.529,635 2.617) 1.560.00 Preferred stock: 10,000 shares authorized: none issued and outstanding common stock (no par value: 125.000 shares authorized 69.995 and 69,873 issued and outstanding (Note 14) Retained camnings Accumulated other comprchensive loss (Note 17) Total Columbia Sportswear Company shareholders equity Non-controlling interest (Note 4) Total equity Total liabilities and equity 1.585.009 (8,887) 1,631.95 20,305 1852.259 2.212.2005 1.581.5II 2,01394 $ See accompanying notes to consolidated fancial statements l. 13157,173-30)/[($1,355,234+$1,252,864)/2] - Appendix Financial Statement for Under Armour Under Armour, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share data) December 31, 2017 31, Dee $ 250,00 6225 917 17459 $ 312,483 609.670 1,158,548 256,978 2,337.679 885,774 555,674 46.995 82.801 97,444 $4,006,367 1,985,163 B04211 84310 56330 1362 110.204 $3,644331 $ 125.000 561,108 296,841 27,000 Assets Current assets Cash and cash equivalents Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property and equipment, net Goodwill Intangible assets, net Deferred income taxes Other long term assets Total assets Liabilities and Stockholders' Equity Current abilities Revolving credit facility, current Accounts payable Accrued expenses Current maturities of long term debt Other current liabilities Total current liabilities Long term debt, net of current maturities Other long term liabilities Total liabilities Commitments and contingencies (see Note 6) Stockholders' equity Class A Common Stock. $0.0003 1/3 par value: 400,000,000 shares authorized as of December 31, 2017, and 2016: 185,257,423 shares issued and outstanding as of December 31, 2017, and 183,814,911 shares issued and outstanding as of December 31, 2016. Class B Convertible Common Stock, S0.0003 1/3 par value: 34,450,000 shares authorized, issued and outstanding as of December 31, 2017, and December 31, 2016. Class C Common Stock. $0.0003 1/3 par value; 400,000,000 shares authorized as of December 31, 2017 and 2016, 222,375,079 shares issued and outstanding as of December 31, 2017, and 220,174,048 shares issued and outstanding as of December 31, 2016. Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total stockholders' equity Total liabilities and stockholders' equity 50,426 1,060,375 765.046 162,304 1,987.725 $ 409,679 208.750 27.000 40,387 685,816 790,388 137,227 1,613,431 Sharer Zed as or Dock. 80.000anber 31, 20 Jutstandino e 74 872.266 1,184,441 (38,211) 2,018,642 $4,006,367 823,484 1,259,414 (52.143 2,030,900 $3,644,331 See accompanying notes, heldge Business Publishers Cambridge B Chapter 9 Accounting for Long-Lived and Intangible Assets 44 EXTENDING YOUR KNOWLEDG EPORTING AND ANALYSIS EYK9-1. COLUMBIA SPORTSWEAF COMPANY 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. What was the total cost of Columbia's property, plant, and equipment at December 31, 2017? b. What was the total accumulated depreciation at December 31, 2017? c. What percentage of the total cost of property, plant, and equipment at December 31, 2017, was from building and improvements? d. How much depreciation and amortization expense was taken in 2017? e. What amount of property, plant, and equipment purchases (capital expenditures) occurred in 2017? EYK9-2. Comparative Analysis Problem: Columbia Sportswear Company vs. Under Armour, Inc. The financial statements for the Columbia Sportswear Company can be found in Appendix A at the end of this book, and the financial statements of Under Armour, Inc. can be found in Appendix B (the complete annual report is available on this book's Website). COLUMBIA SPORTSWEA COMPANY UNDER ARMO INC. Required a. Calculate the following ratios for Columbia Sportswear and for Under Armour, Inc. for 2017: 1. Return on assets 2. Asset turnover b. Comment on your findings. In talebin A4 Appendix A Columbia Sportswear Company COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (is thousands, except per share amounts) Year Ended December 2016 $ 5 $ 2735 2.466,105 1,306,143 1,159,962 910,894 13.901 2,377,045 1,266,697 1.110,348 864,054 10.244 262.969 4.SIS 19 Net sales Cost of sales Gross profit Selling general and administrative expenses Net licensing income lecome from operations Interest income, nes Interest expense on note payable to related party (Note 21) 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 atributable to Columbia Sportswear Company (Note 16): 256,505 2,003 (1.041) (572) 256.898 (58,459) 198,419 6.341 191,898 (321) 266,734 (154,419) 112,315 2473 7.192 $ 105,123 $ $ 1 7 1.51 $ Diluted Weighted average shares outstanding (Note 16 $ 2.75 2.72 1.49 Basic Diluted 69,683 69,759 70,453 70,10 71,054 70,632 See accompanying notes to consolidated financial statements 3.2 Appendix Financial Sements for Under Armour Under Armour, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share data) December 31. December 2017 Netre Costc Sellin Restr $ 312,483 609 670 1,158,548 256,978 2.337.679 885,774 555.674 46,995 82,801 97.444 $4,006,367 $ 250 470 622 FA 917 491 174.507 1.965,153 804211 563 591 64310 136,862 110.204 $3,644,331 Intere Othe Incor $ Assets Current assets Cash and cash equivalents Accounts receivable, net Inventorios Prepaid expenses and other current assets Total current assets Property and equipment, net Goodwill Intangible assets, net Deferred income taxes Other long term assets Total assets Liabilities and Stockholders' Equity Current liabilities Revolving credit facility, current Accounts payable Accrued expenses Current maturities of long term debt Other current liabilities Total current liabilities Long term debt, net of current maturities Other long term liabilities Total liabilities Commitments and contingencies (see Note 6) Stockholders' equity Class A Common Stock, S0.0003 1/3 par value: 400,000,000 shares authorized as of December 31, 2017 and 2016; 185,257,423 shares issued and outstanding as of December 31, 2017, and 183,814,911 shares issued and outstanding as of December 31. 2016. 409,679 208,750 27.000 40,387 $ 125,000 561,108 296,841 27.000 50,426 1,060,375 765,046 162,304 1,987.725 790 388 137227 1.613,431 Class B Convertible Common Stock, 50.0003 1/3 par value; 34,450.000 shares authorized, issued and outstanding as of December 31, 2017, and December 31, 2016 Class C Common Stock, $0.0003 1/3 par value: 400,000,000 shares authorized as of December 31, 2017 and 2016: 222,375,079 shares issued and outstanding as of December 31, 2017. and 220,174,048 shares issued and outstanding as of December 31, 2016. Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total stockholders' equity Total liabilities and stockholders' equity a 74 823.484 1,259,414 872.266 1,184,441 (38,211) 2,018,642 $4,006,367 2,030.900 $3,64433 See accompanying notes Under Armour, Inc. and Subsidiaries Consolidated Statements of Operations (In thousands, except per share amounts) Net revenues Cost of goods sold Gross profit Baling, general and administrative expensee Restructuring and impairment charges Income from operations Interest expense, net Other expense, net Income (loss) before income taxes Income tax expense Net income (loss) Adjustment payment to Class C capital stockholders Net income (loss) available to all stockholders Basic net income (loss) per share of Class A and B common stock Basic net income (loss) per share of Class C common stock Diuted net income (loss) per share of Class A and B common stock Year Ended December 31 2017 2016 2015 $4,976,553 $4,825 335 $3.963,313 2,737,830 2,584,724 2.057.768 2.238.723 2240,611 1,905,547 2.086,831 1.823 140 1,497.000 124049 27843417,471 408 547 (34,538) (26.434) (14,628) 13,614) (2.755) (7.234) (10.309) 388.282 385,685 37,951 131,303 154,112 (48.260) 256,979 232,573 59,000 (48200) 197,979 232,573 $ $ 0.11) $ 0.11) S 0.45 0.72 $ $ 0.54 0.54 10.11) $ (0.11) S 0.45 $ 0.71 $ 0.53 0.53 S bluted net income (loss) per share of Class C common stock Weighted average common shares outstanding Class A 219.254 219.254 217,707 221,944 215,498 220,868 and B common stock Basic Diluted Weighted averag common stock Basic Diuted 221,475 221,475 215,498 220,868 218,623 222,904 hted average common shares outstanding Class C Chapter 9 Accounting for Long-Lived and intangible Assets SPORTIN AND ANALYSIS 457 EXTENDING YOUR KNOWLEDGE EYK9-1. Fancial R ancial Reporting Problem: Columbia Sportswear Company The financial statements for Columbia Sportswear Company can be found in Appendix A at the end of this book Required COLUMBIA SPORTSWEAR COMPANY Answer the following questions. What was the total cost of Columbia's property, plant, and equipment at December 31, 2017 h. What was the total accumulated depreciation at December 31, 2017? What percentage of the total cost of property, plant, and equipment at December 31.0 was from building and improvements? How much depreciation and amortization expense was taken in 2017? e. What amount of property, plant, and equipment purchases (capital expenditures) occurred in COLUMBIA SPORTSWEAR COMPANY UNDER ARMOUR 2017? VK9.2. Comparative Analysis Problem: Columbia Sportswear Company vs. Under Armour, Inc. The financial statements for the Columbia Sportswear Company can be found in Appendix A at the end of this book, and the financial statements of Under Armour, Ine, can be found in Appendix Appendix B (the complete annual report is available on this book's Website). Required a. Calculate the following ratios for Columbia Sportswear and for Under Armour, Inc. for 2017: 1. Return on assets 2. Asset turnover b. Comment on your findings. -3. Business Decision Problem I vle Fleming nresident of Fleming. Ine wants van te melve hie FINANCIAL STK IAL STATEMENTS COLUMNA SPORTSWEAR COMPANY CONSOLIDATED BALANCE SEXTS hand cash equivalents (Note 20 Short-term investments (Note 201 unts receivable, net (Note 5 Inventories 457 ad expenses and other current Tocal current assets ry, plant, and equipment, net (Nede weible assets, bet (Note 7) Goodwill (Note 7) Pred income taxes (Note 10) Other non-current assets Total assets LIABILITIES AND FOUITY 252. 15.00 Current Liabilities: Accounts payable Accrued liabilities (Note 9) Income taxes payable (Note 10) Total current liabilities Note payable to related party (Note 21) Other long-term liabilities (Notes 11, 12) Income taxes payable (Note 10) Deferred income taxes ( 10) Total liabilities Comitments and contingencies Note 13) 48.735 104 560,643 432.383 Shareholders' Equity 1.529,635 2.617) 1.560.00 Preferred stock: 10,000 shares authorized: none issued and outstanding common stock (no par value: 125.000 shares authorized 69.995 and 69,873 issued and outstanding (Note 14) Retained camnings Accumulated other comprchensive loss (Note 17) Total Columbia Sportswear Company shareholders equity Non-controlling interest (Note 4) Total equity Total liabilities and equity 1.585.009 (8,887) 1,631.95 20,305 1852.259 2.212.2005 1.581.5II 2,01394 $ See accompanying notes to consolidated fancial statements l. 13157,173-30)/[($1,355,234+$1,252,864)/2] - Appendix Financial Statement for Under Armour Under Armour, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share data) December 31, 2017 31, Dee $ 250,00 6225 917 17459 $ 312,483 609.670 1,158,548 256,978 2,337.679 885,774 555,674 46.995 82.801 97,444 $4,006,367 1,985,163 B04211 84310 56330 1362 110.204 $3,644331 $ 125.000 561,108 296,841 27,000 Assets Current assets Cash and cash equivalents Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property and equipment, net Goodwill Intangible assets, net Deferred income taxes Other long term assets Total assets Liabilities and Stockholders' Equity Current abilities Revolving credit facility, current Accounts payable Accrued expenses Current maturities of long term debt Other current liabilities Total current liabilities Long term debt, net of current maturities Other long term liabilities Total liabilities Commitments and contingencies (see Note 6) Stockholders' equity Class A Common Stock. $0.0003 1/3 par value: 400,000,000 shares authorized as of December 31, 2017, and 2016: 185,257,423 shares issued and outstanding as of December 31, 2017, and 183,814,911 shares issued and outstanding as of December 31, 2016. Class B Convertible Common Stock, S0.0003 1/3 par value: 34,450,000 shares authorized, issued and outstanding as of December 31, 2017, and December 31, 2016. Class C Common Stock. $0.0003 1/3 par value; 400,000,000 shares authorized as of December 31, 2017 and 2016, 222,375,079 shares issued and outstanding as of December 31, 2017, and 220,174,048 shares issued and outstanding as of December 31, 2016. Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total stockholders' equity Total liabilities and stockholders' equity 50,426 1,060,375 765.046 162,304 1,987.725 $ 409,679 208.750 27.000 40,387 685,816 790,388 137,227 1,613,431 Sharer Zed as or Dock. 80.000anber 31, 20 Jutstandino e 74 872.266 1,184,441 (38,211) 2,018,642 $4,006,367 823,484 1,259,414 (52.143 2,030,900 $3,644,331 See accompanying notes, heldge Business Publishers Cambridge B Chapter 9 Accounting for Long-Lived and Intangible Assets 44 EXTENDING YOUR KNOWLEDG EPORTING AND ANALYSIS EYK9-1. COLUMBIA SPORTSWEAF COMPANY 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. What was the total cost of Columbia's property, plant, and equipment at December 31, 2017? b. What was the total accumulated depreciation at December 31, 2017? c. What percentage of the total cost of property, plant, and equipment at December 31, 2017, was from building and improvements? d. How much depreciation and amortization expense was taken in 2017? e. What amount of property, plant, and equipment purchases (capital expenditures) occurred in 2017? EYK9-2. Comparative Analysis Problem: Columbia Sportswear Company vs. Under Armour, Inc. The financial statements for the Columbia Sportswear Company can be found in Appendix A at the end of this book, and the financial statements of Under Armour, Inc. can be found in Appendix B (the complete annual report is available on this book's Website). COLUMBIA SPORTSWEA COMPANY UNDER ARMO INC. Required a. Calculate the following ratios for Columbia Sportswear and for Under Armour, Inc. for 2017: 1. Return on assets 2. Asset turnover b. Comment on your findings. In talebin A4 Appendix A Columbia Sportswear Company COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (is thousands, except per share amounts) Year Ended December 2016 $ 5 $ 2735 2.466,105 1,306,143 1,159,962 910,894 13.901 2,377,045 1,266,697 1.110,348 864,054 10.244 262.969 4.SIS 19 Net sales Cost of sales Gross profit Selling general and administrative expenses Net licensing income lecome from operations Interest income, nes Interest expense on note payable to related party (Note 21) 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 atributable to Columbia Sportswear Company (Note 16): 256,505 2,003 (1.041) (572) 256.898 (58,459) 198,419 6.341 191,898 (321) 266,734 (154,419) 112,315 2473 7.192 $ 105,123 $ $ 1 7 1.51 $ Diluted Weighted average shares outstanding (Note 16 $ 2.75 2.72 1.49 Basic Diluted 69,683 69,759 70,453 70,10 71,054 70,632 See accompanying notes to consolidated financial statements 3.2 Appendix Financial Sements for Under Armour Under Armour, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share data) December 31. December 2017 Netre Costc Sellin Restr $ 312,483 609 670 1,158,548 256,978 2.337.679 885,774 555.674 46,995 82,801 97.444 $4,006,367 $ 250 470 622 FA 917 491 174.507 1.965,153 804211 563 591 64310 136,862 110.204 $3,644,331 Intere Othe Incor $ Assets Current assets Cash and cash equivalents Accounts receivable, net Inventorios Prepaid expenses and other current assets Total current assets Property and equipment, net Goodwill Intangible assets, net Deferred income taxes Other long term assets Total assets Liabilities and Stockholders' Equity Current liabilities Revolving credit facility, current Accounts payable Accrued expenses Current maturities of long term debt Other current liabilities Total current liabilities Long term debt, net of current maturities Other long term liabilities Total liabilities Commitments and contingencies (see Note 6) Stockholders' equity Class A Common Stock, S0.0003 1/3 par value: 400,000,000 shares authorized as of December 31, 2017 and 2016; 185,257,423 shares issued and outstanding as of December 31, 2017, and 183,814,911 shares issued and outstanding as of December 31. 2016. 409,679 208,750 27.000 40,387 $ 125,000 561,108 296,841 27.000 50,426 1,060,375 765,046 162,304 1,987.725 790 388 137227 1.613,431 Class B Convertible Common Stock, 50.0003 1/3 par value; 34,450.000 shares authorized, issued and outstanding as of December 31, 2017, and December 31, 2016 Class C Common Stock, $0.0003 1/3 par value: 400,000,000 shares authorized as of December 31, 2017 and 2016: 222,375,079 shares issued and outstanding as of December 31, 2017. and 220,174,048 shares issued and outstanding as of December 31, 2016. Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total stockholders' equity Total liabilities and stockholders' equity a 74 823.484 1,259,414 872.266 1,184,441 (38,211) 2,018,642 $4,006,367 2,030.900 $3,64433 See accompanying notes Under Armour, Inc. and Subsidiaries Consolidated Statements of Operations (In thousands, except per share amounts) Net revenues Cost of goods sold Gross profit Baling, general and administrative expensee Restructuring and impairment charges Income from operations Interest expense, net Other expense, net Income (loss) before income taxes Income tax expense Net income (loss) Adjustment payment to Class C capital stockholders Net income (loss) available to all stockholders Basic net income (loss) per share of Class A and B common stock Basic net income (loss) per share of Class C common stock Diuted net income (loss) per share of Class A and B common stock Year Ended December 31 2017 2016 2015 $4,976,553 $4,825 335 $3.963,313 2,737,830 2,584,724 2.057.768 2.238.723 2240,611 1,905,547 2.086,831 1.823 140 1,497.000 124049 27843417,471 408 547 (34,538) (26.434) (14,628) 13,614) (2.755) (7.234) (10.309) 388.282 385,685 37,951 131,303 154,112 (48.260) 256,979 232,573 59,000 (48200) 197,979 232,573 $ $ 0.11) $ 0.11) S 0.45 0.72 $ $ 0.54 0.54 10.11) $ (0.11) S 0.45 $ 0.71 $ 0.53 0.53 S bluted net income (loss) per share of Class C common stock Weighted average common shares outstanding Class A 219.254 219.254 217,707 221,944 215,498 220,868 and B common stock Basic Diluted Weighted averag common stock Basic Diuted 221,475 221,475 215,498 220,868 218,623 222,904 hted average common shares outstanding Class C
