Financial Analysis Purpose: To help familiarize you with the financial reporting of a real company in order to fur-ther your understanding of the chapter material. This case uses both the income statement (statement of operations) and the balance sheet of Columbia Sportswear in Appendix A at the end of the book. Requirements 1. What income statement format does Columbia Sportswear use? How can you tell? 2. Calculate the gross proft percentage for Columbia Sportswear for 2014, 2015, and 2016. Did the gross proft percentage improve or deteriorate over those years? 3. Calculate the net income percentage for Columbia Sportswear for 2014, 2015, and 2016. Did the net income percentage improve or deteriorate? 4. Does Columbia Sportswear report a classifed balance sheet? How can you tell?
Appendix A 663 COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED BALANCE SHEETS (In thousands) December 31, 2016 2015 $ 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 ASSETS Current Assets: Cash and cash equivalents.... Short-term investments .. Accounts receivable, net (Note 5). 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 $ 1,846,153 664 Appendix A 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..... Diluted 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 S 137,173 2.75$ 2.72 2.48 $ 2.45 1.97 1.94 69,683 70,632 70,162 71,064 69,807 70,681 Appendix A 665 COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Year Ended December 31, 2016 2015 2014 $ 198,439 $ 179,851 $ 141,859 (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 $0, ($3), and ($5), respectively). .. Unrealized gains (losses) on derivative transactions (net of tax effects of ($1,922), ($849) and ($1,507), respectively).. Foreign currency translation adjustments (net of tax effects of ($347), ($760) 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) (3,644) 194,795 4,678 190,117 $ (34,887) (37,801) 142,050 4,382 137,668 $ (27,789) (20,028) 121,831 4,185 117,646 $
