Mih Use the company's 2016 annual report to answer the following questions. (a) What was the company's profit margin for 2016? (Round profit margin percentage to 1 decimal place, e.g. 15.2%.) The company's profit margin for 2016 Has it increased or decreased from 2015? Increased (b) dy What was the company's operating pro for 2016? 6904 The 2016 operating profit was cl (c) The company reported comprehensive income of 4,543 billion in 2016. What are the other comprehensive gains and losses recorded in 2016? Other comprehensive gains and losses was million. Click If you would like to Show Work for this question: Open Show Work SHOW ANSWER LINK TO TEXT Notes 2016 2015 2014 23-24 37,600 (13,039) 35,664 (12,553) 24,561 23,111 (14,607) (2,931) 3 30,638 (10,801) 19,837 (11,744) (2,373) (5) 5,715 7 (13,830) (2,663) (13) 6,605 (221) 23-24 7,026 (EUR millions, except for earnings per share) Revenue Cost of sales Gross margin Marketing and selling expenses General and administrative expenses Income (loss) from joint ventures and associates Profit from recurring operations Other operating income and expenses Operating profit Cost of net financial debt Other financial income and expenses Net financial income (expense) Income taxes Net profit before minority interests Minority interests Net profit, Group share 25 (122) (284) 6,904 (83) (349) 6,384 (78) (336) 5431 (115) 3,062 26 (432) (414) 2,947 27 (1,969) (2,273) 12,109) 4,363 4,001 (428) 6,105 (457) 17 (382) 3,981 3,573 5,648 28 7.92 502,911,125 7.11 502,395,491 11.27 501,309,369 Basic Group share of net earnings per share (EUR) Number of shares on which the calculation is based Diluted Group share of net earnings per share (EUR) Number of shares on which the calculation is based 28 7.89 504,640,459 7.08 504,894,946 11.21 503,861,733 Notes 2016 2015 EUR millions) Net profit before minority interests 2014 6,105 4,363 4,001 15.4 631 534 Translation adjustments Amounts transferred to income statement Tax Impact 109 (32) (9) 135 104 68 766 638 8,13 Change in value of available for sale financial assets Amounts transferred to income statement Tax impact 18 4 1 (32) 191) 20 3,326) 184 23 (2,648) Change in value of hedges of future foreign currency cash flows Amounts transferred to income statement Tax impact 48 (26) (2) (103) (63) 33 3 (30) (163) 57 20 (27) (136) 111 636 (2,146) Gains and losses recognized in equity, transferable to income statement Change in value of vineyard land Amounts transferred to consolidated reserves Tax impact 30 64 (17) (10) 108 (21) 43 (18) 29 Employee benefit commitments: change in value resulting from actuarial gains and losses Tax impact (86) 17 42 (16) (161) 52 (109) (69) 26 Gains and losses recognized in equity, not transferable to income statement 69 (127) 4,543 (434) 4,706 (558) 3,832 (565) Comprehensive Income Minority interests Comprehensive income, Group share 4,109 4,148 3,267 Notes 2016 2015 2014 3 4 13,335 10,401 12,139 13,572 10,122 11,157 729 7 770 ASSETS (EUR millions) Brands and other intangible assets Goodwill Property, plant and equipment Investments in joint ventures and associates Non-current available for sale financial assets Other non-current assets Deferred tax Non-current assets Inventories and work in progress Trade accounts receivable Income taxes Other current assets Cash and cash equivalents 13,031 8,810 10,387 519 580 489 1,436 574 8 9 27 744 777 2,058 10 11 40,224 10,546 2,685 280 2,343 3,544 19,398 552 1,945 38,651 10,096 2,521 384 2,355 3,594 35,252 9,475 2,274 354 1,916 4,091 12 14 Current assets 18,950 18,110 Total assets 59,622 57,601 53,362 Notes 2016 2015 2014 LIABILITIES AND EQUITY (EUR millions) Share capital Share premium account Treasury shares and LVMH share-settled derivatives Cumulative translation adjustment Revaluation reserves Other reserves Net profit, Group share Equity, Group share Minority interests 15.1 15.1 15.2 15.4 152 2,601 (520) 1,165 1,049 17,965 3,981 152 2,579 (240) 1,137 949 16,189 3,573 152 2,655 (374) 492 1,019 12,171 5,648 26,393 1,510 24,339 1,460 21,763 1,240 17 17 1,510 1,240 23,003 19 27,903 3,932 2,342 4,137 8,498 Minority interests Equity Long-term borrowings Non-current provisions Deferred tax Other non-current liabilities Non-current liabilities Short-term borrowings Trade accounts payable Income taxes Current provisions Other current liabilities Current liabilities 20 1,460 25,799 4,511 1,950 4,685 7,957 19,103 3,769 3,960 640 421 3,909 5,054 2,291 4,392 6,447 18,184 18 21.1 18,909 3,447 4.184 428 352 4.399 4.189 3,606 549 332 3,499 19 21.2 12,810 12,699 12,175 Total liabilities and equity 59,622 57,601 53,362 EUR bons Number of shares Share capital Share Treasury Cumulate premium shares and anslation account LVHH Relation reserves Netpro and other reserves Totally benet Group Available for sale franc asset Tee Hedges of Mare foreign curreny cash flows derivatives ments 152 154 152 1,849 2,055 136 07) 18,437 26.IT 500 2,648 (159 17 1,028 108 45T 565 2.3.1) 5.648 1,267 27,907 Q2 6105 3,832 500 584 5,648 2.648) (122) 015) (96) 37 37 2 B 27 ) 10 59 5 59 150 (1.579 (1.579 1320 don 15,652) 16855) 05.855 IS 11 Notes As of December 31, 2013 507,791.41 Gairs and losses recognized in equity Net profit Comprehensive Income Stock option plan and similar expenses Acquisition disposal of treasury shares and LVMH share-settled derivatives Exercise of LVMH share subscription options 980,323 Retirement of LVMH shares (1.062,271) Capital increase in subsidiaries Interim and final dividends paid Distrution in kind of Hermes shares Changes in control of consolidated entities Acquisition and disposal of minority interests' shares Purchase commitments for minority interests' shares As of December 31, 2014 507,711,713 Gains and losses recognized in equity Net profit Comprehensive Income Stock option plan and similar expenses Acquisition disposal of treasury shares and LVMH share-settled derivatives Exercise of LVMH share subscription options 552,137 Retirement of LVMH shares 01.124,7401 Capital increase in subsidiaries Interim and final dividends paid Changes in control of consolidated entities Acquisition and disposal of minority interest shares Purchase commitments 128 152 2,655 074 492 645 207 (103 14 0251 1481 17,819 931 33 (133) 25 (72) 1,240 130 2170 STS 3,573 4148 35 (121) 23,003 T05 4.001 4,706 37 645 0101 3,573 1,573 35 225) 33 558 2 23 (131 10 10 35 25 35 011 (1659) (1659 1.8 19 3) 2 192 2.655 374) 931 33 17,819 14 05 (103) (111) 25 1240 139 21,6 575 3,573 4,148 15 (121) 23,003 705 4,001 4,706 37 645 (107 25) 1.53 3.573 35 33 25 2 23 22 (12 10 30 35 35 (111) 35 89 09 (1,65 (16591 (1888) 19 19 3 5 5 2 11 2,579 11 19,762 152 (198) 1.450 1,137 040 104 (11) 964 (106) for minority interests shares As of December 31, 2014 507,711,713 Gains and losses recognized in equity Net profit Comprehensive Income Stock option plan and similar expenses Acquisition/disposal of treasury shares and LVMH share-settled derivatives Exercise of LVM share subscription options 552,137 Retirement of LVMH shares (1,124,7401 Capital increase in subsidiaries Interim and final dividends paid Changes in control of consolidated entities Acquisition and disposal of minority interests shares Purchase commitments for minority interests' shares As of December 31, 2015 507,139,110 Gains and losses recognized in equity Net pro Comprehensive Income Stock option plan and similar expenses Acquisition disposal of treasury shares and LVMH sharested derivatives Exercise of LVMH share subscription options 907.929 Retirement of LVMH shares 1920,951) Capital increase in subsidiaries Interim and final dividends paid Changes in control of consolidated entities Acquisition and disposal of minority interests' shares Purchase commitments for minority interests' shares As of December 31, 2016 507,126,038 al See Note 8 28 19 113 (55) 24,335 121 3,981 4,101 25,719 180 4,363 4,543 52 382 434 28 3,981 1.981 23 19 113 (SS 19 2 322 (21) 343 64 44 1421 42 41 0,811) 0.010 12 15 17 636 150 05 57 21,345 57 26,00 (142 1,510 152 2.601 15201 1,165 127 8 1,077 27.900 ATED CASH FLOW STATEMENT ATED CASH FLOW STATEMENT Notes 2016 2015 2014 6,904 18 2.143 (177) (155) 6,384 27 2,081 (456) (91) 5,431 26 1,895 (188) (84) 8,733 (59) (1,923) 6,751 (512) 7,945 (75) (1,807 6,063 (429) 7,080 (116) (1,639) 14.2 5,325 (718) 143 (EUR millions) 1. OPERATING ACTIVITIES AND OPERATING INVESTMENTS Operating profit Income loss) and dividends from joint ventures and associates Net increase in depreciation, amortization and provisions Other computed expenses Other adjustments Cash from operations before changes in working capital Cost of net financial debt: Interest paid Tax paid Net cash from operating activities before changes in working capital Change in working capital Net cash from operating activities Operating Investments Net cash from operating activities and operating investments (free cash flow) II. FINANCIAL INVESTMENTS Purchase of non current available for sale financial assets Proceeds from sale of non-current available for sale financial assets Dividends received Tax paid related to non-current available for sale financial assets and consolidated investments Impact of purchase and sale of consolidated investments Net cash from (used in) financial investments II. TRANSACTIONS RELATING TO EQUITY Capital increases of LVMH SE Capital increases of subsidiaries subscribed by minority interests Acquisition and disposals of treasury shares and LVMH share-settled derivatives Interim and final dividends paid by LVMH SEM Tax paid related to interim and final dividends paid 6,239 (2,265) 3,974 5,634 (1,955) 3/679 4,607 (1,775) 2,032 8,13 (28) 91 6 (78) 68 (57) 160 69 8 (461) 310 (265) 2.4 (40) (237) (167) (82) (511) (232) 15.1 17 35 81 41 59 3 15.2 1 1 (352) (1,810) 153 (145) (1,671) (304) (1,619) (79) vuugu Iwi (461) 24 3 1 15.3 Purchase of non-current available for sale financial assets 8,13 (28) (78) Proceeds from sale of non-current available for sale financial assets (57) 91 6B 160 Dividends received 8. 6 4 69 Tax paid related to non-current available for sale financial assets and consolidated investments (265) (227) Impact of purchase and sale of consolidated investments 310 (240) (167) Net cash from (used in) financial investments (82) (511) (232) III. TRANSACTIONS RELATING TO EQUITY Capital increases of LVMH SE 15.1 64 35 59 Capital increases of subsidiaries subscribed by minority interests 17 41 81 Acquisition and disposals of treasury shares and LVMH share-settled derivatives 15.2 (352) Interim and final dividends paid by LVMH SE (1,810) (1,671) (1,619) Tax paid related to interim and final dividends paid (145) (304) (79) Interim and final dividends paid to minority interests in consolidated subsidiaries 17 (267) (228) (336) Purchase and proceeds from sale of minority interests 24 (95) 14) 10 Net cash from (used in) transactions relating to equity (2.564) (2,090) (1,961) Change in cash before financing activities 1,328 1,078 639 IV. FINANCING ACTIVITIES Proceeds from borrowings 18.1 913 1,008 2,407 Repayment of borrowings 18.1 (2,134) (2,443) 02.100) Purchase and proceeds from sale of current available for sale financial assets 8,13 (113) (3) (106) Net cash from (used in) financing activities (1,334) (1438) 201 V. EFFECT OF EXCHANGE RATE CHANGES (47) (33) 27 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1+II+II+IV+V) (53) (393) 867 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 14.1 3,390 3,783 2,916 CASH AND CASH EQUIVALENTS AT END OF PERIOD 14.1 3,337 3,390 3,783 TOTAL TAX PAID (2,529) (2,376) (1,955) The cash impact of non-current available for sale financial assets used to hedge net franca de Note 1) is presented under "Iv. Financing activities as "Purchase and proceeds from sale of current available for sale financial assets The distribution in kind of Hermes shares in 2014 had no impact on cash, apart from related to effects. See Note 8