Rutgers Business School - Corporate FinanceUnder Armour BudgetProfessor Lisa Kaplowitz% of Revenue% Growth($ in thousands)20152016201720152016201715-'1616-'17Notes/CommentsRevenues:Apparel$2,801,062$3,229,14271%67%15%6-8% growth.Slower than footwear, per press releaseFootwear677,7441,013,54417%21%50%24-26% growth.Higher than apparel, per press releaseAccessories346,885406,6149%8%17%12-14% growth.Lower growth than prior yearTotal net sales3,825,6914,649,30097%96%22%Licensing revenues84,20799,8492%2%19%14-16% growth.Growth continues, but at reduced rateConnected fitness53,41580,4471%2%51%24-26% growth. Growth continues, but at reduced rateIntersegment eliminations-(1,410)0%0%n/a0% growth. not materialTotal net revenues$3,963,313$4,828,186100%100%22%Total revenue increase 11-12% to $5.4b, per press releaseCost of goods sold2,057,7662,584,72451.9%53.5%25.6%54-56% of revenue.Increase based on press release discussion on GMGross Profit1,905,5472,243,46248.1%46.5%17.7%Down slightly, per press release, due to sales mix of lower margin and intl busSelling, general and administrative expense1,497,0001,823,14037.8%37.8%21.8%38-40% of revenue.Increase based on press release discussion on Op IncomeIncome from operations408,547420,32210.3%8.7%2.9%Decline to approx. $320m, per press releaseInterest expense, net(14,628)(26,434)-0.4%-0.5%80.7%Approx. $40m, per press release.Other expense, net(7,234)(2,755)-0.2%-0.1%-61.9%Keep as same 2016 % total revenueIncome before income taxes386,685391,1339.8%8.1%1.2%Provision for income taxes154,112132,4733.9%2.7%-14.0%Tax rate 32-34%, per press releaseNet income$232,573$258,6605.9%5.4%11.2%Directions:1.Estimate green % growth (column Q) for each line of revenue (lines 7-9, 11-13).2.Calculate sales and revenues (lines 7-9, 11-13 of column F) based on your estimates in column Q.3.Estimate green % of revenue (column L) for each line of expense (line 16, 18, 20 and 21).4.Calculate expenses (lines 16, 18, 20 and 21 of column F) based on your estimates in column L.Note Press releases gives interest estimate.5.Calculate the totals for net sales, net revenues, gross profit, income from operations and income before income taxes.6.Assume provision for income tax based on % given in press release for Income before income tax.7.Calculate net income.8.Calculate the remaining % of revenue (column L) for each line item9.Calculate the remaining % growth (column Q) for each line item.10. Note your rationale/reasoning for each line item assumptions.11.Blue text=hard code; black=calc