The financial statements of Louis Vuitton are presented in Appendix A. The complete annual report, including the notes to its financial statements, is available at the company's website. Click here to view Appendix F. 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) What was the company's operating profit for 2016? % The 2016 operating profit was (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. Specimen Financial Statements: Louis Vuitton Louis Vuitton is a French company and is one of the leading international fashion houses in the world. Louis Vuitton has been named the world's most valuable luxury brand. Note that its financial statements are IFRS-based and are presented in euros (). The complete financial statements are available at the company's website. CONSOLIDATED INCOME STATEMENT (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 Notes. 23-24 7 23-24 25 2016 37,600 (13,039) 24,561 (14,607) (2,931) 3 7,026 (122) 6,904 2015 35,664 (12,553) 23,111 APP (13,830) (2,663) (13) 6,605 (221) 6,384 2014 30,638 (10,801) 19,837 (11,744) (2,373) (5) 5,715 (284) 5,431 CONSOLIDATED STATEMENT OF COMPREHENSIVE GAINS AND LOSSES (EUR millions) Net profit before minority interests Translation adjustments Amounts transferred to income statement Tax impact Change in value of available for sale financial assets Amounts transferred to income statement Tax impact Change in value of hedges of future foreign currency cash flows Amounts transferred to income statement Tax impact Gains and losses recognized in equity, transferable to income statement Change in value of vineyard land Amounts transferred to consolidated reserves Tax impact Notes 15.4 8, 13 6 2016 4,363 109 (32) (9) 68 18. 4 1 23 48 (26) (2) 20 111 30 - 108 138 2015 4,001 631 135 766 (32) (91) 20 (103) (63) 33 3 (27) 636 64 (21) 43 2014 6,105 534 104 638 494 (3,326) 184 (2,648) (30) (163) 57 (136) (2,146) (17) (10) 9 (18) Employee benefit commitments: change in value resulting from actuarial gains and losses Tax impact Gains and losses recognized in equity, not transferable to income statement Comprehensive income Minority interests Comprehensive income, Group share 29 (86) 17 (69) 69 4,543 (434) 4,109 42 (16) 26 69 4,706 (558) 4,148 (161) 52 (109) (127) 3,832 (565) 3,267 CONSOLIDATED BALANCE SHEET 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 Current assets Total assets Notes 346769N 8 27 10 11 12 14 2016 13,335 10,401 12,139 770 744 777 2,058 40,224 10,546 2,685 280 2,343 3,544 19,398 59,622 2015 13,572 10,122 11,157 729 574 552 1,945 38,651 10,096 2,521 384 2,355 3,594 18,950 57,601 2014 13,031 8,810 10,387 519 580 489 1,436 35,252 9,475 2,274 354 1,916 4,091 18,110 53,362 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 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 Total liabilities and equity Notes 15.1 15.1 15.2 15.4 17 18. 19 27 20 18 21.1 19. 21.2 2016 152 2,601 (520) 1,165 1,049 17,965 3,981 26,393 1,510 27,903 3,932 2,342 4,137 8,498 18,909 3,447 4,184 428 352 4,399 12,810 59,622 2015 152 2,579 (240) 1,137 949 16,189 3,573 24,339 1,460 25,799 4,511 1,950 4,685 7,957 19,103 3,769 3,960 640 421 3,909 12,699 57,601 2014 152 2,655 (374) 492 1,019 12,171 5,648 21,763 1,240 23,003 5,054 2,291 4,392 6,447 18,184 4,189 3,606 549 332 3,499 12,175 53,362 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR millions) Notes. As of December 31, 2013 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 Retirement of LVMH shares Capital increase in subsidiaries Interim and final dividends paid Distribution in kind of Herms shares Changes in control of consolidated entities Acquisition and disposal of minority interests' shares Number of shares Purchase commitments for minority interests' shares 507,793,661 980,323 (1,062,271) Share Share Treasury Cumulative capital premium shares and translation account LVMH adjustment share- settled derivatives 15.1 152 3,849 59 (50) (1,203) 15.2 (451) 27 50 15.4 (8) 500 500 Available for sale financial assets 2,855 (2,648) (2,648) Hedges of future foreign currency cash flows 136 (122) (122) Revaluation reserves Net profit and other reserves Vineyard Employee land benefit commit- ments 946 (15) (15) (37) (96) (96) 19,437 5,648 5,648 37 (17) (1,579) (5,652) (5) (2) (48) Group Minority share interests 26,879 (2,381) 5,648 3,267 37 10 59 (1,579) (6,855) (5) (2) (48) 17 1,028 27,907 108 (2,273) 6.105 3,832 457 565 2 - 3 (328) 11 32 Total equity Total (73) 39 10 59 3 (1,907) (6,855) 6 30 (121) As of December 31, 2014 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 Retirement of LVMH shares 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 507,711,713 552,137 (1,124,740) 152 2,655 35 (111) (374) 23 111 492 645 645 207 (103) (103) 14 (25) (25) 931 33 33 (133) 25 25 17,819 21,763 575 3,573 4,148 35 3,573 3,573 35 (13) (1,659) (9) 5 11 10 35 (1,659) (9) 5 11 1,240 130 428 558 2 89 (229) 1 (3) (198) 23,003 705 4,001 4,706 37 10 3.5 89 (1,888) (8) 2 (187) As of December 31, 2014 Gains and losses recognized in equity Net profit 507,711,713 Comprehensive income Stock option plan and similar expenses (Acquisition)/disposal of treasury shares and LVMH share-settled derivatives Exercise of LVMH share subscription options Retirement of LVMH shares 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 552,137 (1,124,740) 152 2,655 35 (111) (374) 23 111 492 645 645 207 (103) (103) 14 (25) (25) 931 33 33 (133) 25 25 17,819 3,573 3,573 35 (13) (1,659) (9) 5 11 21,763 575 3,573 4,148 35 10 35 (1,659) (9) 5 11 1,240 23,003 130 705 428 4,001 558 4,706 37 2 1 89 (229) 1 (3) (198) 10 35 89 (1,888) (8) 2 (187) As of December 31, 2015 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 Retirement of LVMH shares 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 (a) See Note 8. 507,139,110 907,929 (920,951) 507,126,088 152 152 2,579 64 (42) 2,601 (240) (322) 42 (520) 1,137 28 28 1,165 104 23 23 127 (11) 19. 19 8 964 113. 113 1,077 (108) 19,762 24,339 (55) 128 3,981 4,109 (55) 3,981 3,981 39 (21) (1,811) (5) (56) 57 (163) 21,946 39 (343) 64 (1,811) (5) (56) 57 26,393 1,460 25,799 52 382 434 2 41 (272) 22 (35) (142) 1,510 180 4,363 4,543 41 (343) 64 41 (2,083) 17 (91) (85) 27,903 (EUR millions) I. 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 al 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 Notes 14.2 14.3 8, 13 8 8 3 2.4 2016 6,904 18 2,143 (177) (155) 8,733 (59) (1,923) 6,751 (512) 6,239 (2,265) 3,974 (28) 91 6 (461) 310 (82) 2015 6,384 27 2,081 (456) (91) 7,945 (75) (1,807) 6,063 (429) 5,634 (1,955) 3,679 (78) 68 4 (265) (240) (511) 2014 5,431 26 1,895 (188) (84) 7,080 (116) (1,639) 5,325 (718) 4,607 (1,775) 2,832 (57) 160 69 (237) (167) (232) III. 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 SE Tax paid related to interim and final dividends paid Interim and final dividends paid to minority interests in consolidated subsidiaries Purchase and proceeds from sale of minority interests Net cash from (used in) transactions relating to equity Change in cash before financing activities IV. FINANCING ACTIVITIES Proceeds from borrowings Repayment of borrowings Purchase and proceeds from sale of current available for sale financial assets) 15.1 17 Net cash from (used in) financing activities V. EFFECT OF EXCHANGE RATE CHANGES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (I+II+III+IV+V) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS AT END OF PERIOD TOTAL TAX PAID 15.2 15.3 17 2.4 18.1 18.1 8, 13 64 41 14.1 14.1 (352) (1,810) (145) (267) (95) (2,564) 1,328 913 (2,134) 35 81 1 (1,671) (304) (228) (4) (2,090) 1,078 1,008 (2,443) (3) (1,438) (33) (393) 3,783 3,390 (2,376) 59 3 1 (1,619) (79) (336) 10 (1,961) 639 2,407 (2,100) (113) (1,334) (47) (53) 867 3,390 2,916 3,337 3,783 (2,529) (1,955) (a) The cash impact of non-current available for sale financial assets used to hedge net financial debt (see Note 18) is presented under "IV. Financing activities" as "Purchase and proceeds from sale of current available for sale financial assets". (b) The distribution in kind of Herms shares in 2014 had no impact on cash, apart from related tax effects. See Note 8. (106) 201 27 The financial statements of Louis Vuitton are presented in Appendix A. The complete annual report, including the notes to its financial statements, is available at the company's website. Click here to view Appendix F. 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) What was the company's operating profit for 2016? % The 2016 operating profit was (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. Specimen Financial Statements: Louis Vuitton Louis Vuitton is a French company and is one of the leading international fashion houses in the world. Louis Vuitton has been named the world's most valuable luxury brand. Note that its financial statements are IFRS-based and are presented in euros (). The complete financial statements are available at the company's website. CONSOLIDATED INCOME STATEMENT (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 Notes. 23-24 7 23-24 25 2016 37,600 (13,039) 24,561 (14,607) (2,931) 3 7,026 (122) 6,904 2015 35,664 (12,553) 23,111 APP (13,830) (2,663) (13) 6,605 (221) 6,384 2014 30,638 (10,801) 19,837 (11,744) (2,373) (5) 5,715 (284) 5,431 CONSOLIDATED STATEMENT OF COMPREHENSIVE GAINS AND LOSSES (EUR millions) Net profit before minority interests Translation adjustments Amounts transferred to income statement Tax impact Change in value of available for sale financial assets Amounts transferred to income statement Tax impact Change in value of hedges of future foreign currency cash flows Amounts transferred to income statement Tax impact Gains and losses recognized in equity, transferable to income statement Change in value of vineyard land Amounts transferred to consolidated reserves Tax impact Notes 15.4 8, 13 6 2016 4,363 109 (32) (9) 68 18. 4 1 23 48 (26) (2) 20 111 30 - 108 138 2015 4,001 631 135 766 (32) (91) 20 (103) (63) 33 3 (27) 636 64 (21) 43 2014 6,105 534 104 638 494 (3,326) 184 (2,648) (30) (163) 57 (136) (2,146) (17) (10) 9 (18) Employee benefit commitments: change in value resulting from actuarial gains and losses Tax impact Gains and losses recognized in equity, not transferable to income statement Comprehensive income Minority interests Comprehensive income, Group share 29 (86) 17 (69) 69 4,543 (434) 4,109 42 (16) 26 69 4,706 (558) 4,148 (161) 52 (109) (127) 3,832 (565) 3,267 CONSOLIDATED BALANCE SHEET 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 Current assets Total assets Notes 346769N 8 27 10 11 12 14 2016 13,335 10,401 12,139 770 744 777 2,058 40,224 10,546 2,685 280 2,343 3,544 19,398 59,622 2015 13,572 10,122 11,157 729 574 552 1,945 38,651 10,096 2,521 384 2,355 3,594 18,950 57,601 2014 13,031 8,810 10,387 519 580 489 1,436 35,252 9,475 2,274 354 1,916 4,091 18,110 53,362 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 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 Total liabilities and equity Notes 15.1 15.1 15.2 15.4 17 18. 19 27 20 18 21.1 19. 21.2 2016 152 2,601 (520) 1,165 1,049 17,965 3,981 26,393 1,510 27,903 3,932 2,342 4,137 8,498 18,909 3,447 4,184 428 352 4,399 12,810 59,622 2015 152 2,579 (240) 1,137 949 16,189 3,573 24,339 1,460 25,799 4,511 1,950 4,685 7,957 19,103 3,769 3,960 640 421 3,909 12,699 57,601 2014 152 2,655 (374) 492 1,019 12,171 5,648 21,763 1,240 23,003 5,054 2,291 4,392 6,447 18,184 4,189 3,606 549 332 3,499 12,175 53,362 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR millions) Notes. As of December 31, 2013 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 Retirement of LVMH shares Capital increase in subsidiaries Interim and final dividends paid Distribution in kind of Herms shares Changes in control of consolidated entities Acquisition and disposal of minority interests' shares Number of shares Purchase commitments for minority interests' shares 507,793,661 980,323 (1,062,271) Share Share Treasury Cumulative capital premium shares and translation account LVMH adjustment share- settled derivatives 15.1 152 3,849 59 (50) (1,203) 15.2 (451) 27 50 15.4 (8) 500 500 Available for sale financial assets 2,855 (2,648) (2,648) Hedges of future foreign currency cash flows 136 (122) (122) Revaluation reserves Net profit and other reserves Vineyard Employee land benefit commit- ments 946 (15) (15) (37) (96) (96) 19,437 5,648 5,648 37 (17) (1,579) (5,652) (5) (2) (48) Group Minority share interests 26,879 (2,381) 5,648 3,267 37 10 59 (1,579) (6,855) (5) (2) (48) 17 1,028 27,907 108 (2,273) 6.105 3,832 457 565 2 - 3 (328) 11 32 Total equity Total (73) 39 10 59 3 (1,907) (6,855) 6 30 (121) As of December 31, 2014 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 Retirement of LVMH shares 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 507,711,713 552,137 (1,124,740) 152 2,655 35 (111) (374) 23 111 492 645 645 207 (103) (103) 14 (25) (25) 931 33 33 (133) 25 25 17,819 21,763 575 3,573 4,148 35 3,573 3,573 35 (13) (1,659) (9) 5 11 10 35 (1,659) (9) 5 11 1,240 130 428 558 2 89 (229) 1 (3) (198) 23,003 705 4,001 4,706 37 10 3.5 89 (1,888) (8) 2 (187) As of December 31, 2014 Gains and losses recognized in equity Net profit 507,711,713 Comprehensive income Stock option plan and similar expenses (Acquisition)/disposal of treasury shares and LVMH share-settled derivatives Exercise of LVMH share subscription options Retirement of LVMH shares 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 552,137 (1,124,740) 152 2,655 35 (111) (374) 23 111 492 645 645 207 (103) (103) 14 (25) (25) 931 33 33 (133) 25 25 17,819 3,573 3,573 35 (13) (1,659) (9) 5 11 21,763 575 3,573 4,148 35 10 35 (1,659) (9) 5 11 1,240 23,003 130 705 428 4,001 558 4,706 37 2 1 89 (229) 1 (3) (198) 10 35 89 (1,888) (8) 2 (187) As of December 31, 2015 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 Retirement of LVMH shares 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 (a) See Note 8. 507,139,110 907,929 (920,951) 507,126,088 152 152 2,579 64 (42) 2,601 (240) (322) 42 (520) 1,137 28 28 1,165 104 23 23 127 (11) 19. 19 8 964 113. 113 1,077 (108) 19,762 24,339 (55) 128 3,981 4,109 (55) 3,981 3,981 39 (21) (1,811) (5) (56) 57 (163) 21,946 39 (343) 64 (1,811) (5) (56) 57 26,393 1,460 25,799 52 382 434 2 41 (272) 22 (35) (142) 1,510 180 4,363 4,543 41 (343) 64 41 (2,083) 17 (91) (85) 27,903 (EUR millions) I. 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 al 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 Notes 14.2 14.3 8, 13 8 8 3 2.4 2016 6,904 18 2,143 (177) (155) 8,733 (59) (1,923) 6,751 (512) 6,239 (2,265) 3,974 (28) 91 6 (461) 310 (82) 2015 6,384 27 2,081 (456) (91) 7,945 (75) (1,807) 6,063 (429) 5,634 (1,955) 3,679 (78) 68 4 (265) (240) (511) 2014 5,431 26 1,895 (188) (84) 7,080 (116) (1,639) 5,325 (718) 4,607 (1,775) 2,832 (57) 160 69 (237) (167) (232) III. 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 SE Tax paid related to interim and final dividends paid Interim and final dividends paid to minority interests in consolidated subsidiaries Purchase and proceeds from sale of minority interests Net cash from (used in) transactions relating to equity Change in cash before financing activities IV. FINANCING ACTIVITIES Proceeds from borrowings Repayment of borrowings Purchase and proceeds from sale of current available for sale financial assets) 15.1 17 Net cash from (used in) financing activities V. EFFECT OF EXCHANGE RATE CHANGES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (I+II+III+IV+V) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS AT END OF PERIOD TOTAL TAX PAID 15.2 15.3 17 2.4 18.1 18.1 8, 13 64 41 14.1 14.1 (352) (1,810) (145) (267) (95) (2,564) 1,328 913 (2,134) 35 81 1 (1,671) (304) (228) (4) (2,090) 1,078 1,008 (2,443) (3) (1,438) (33) (393) 3,783 3,390 (2,376) 59 3 1 (1,619) (79) (336) 10 (1,961) 639 2,407 (2,100) (113) (1,334) (47) (53) 867 3,390 2,916 3,337 3,783 (2,529) (1,955) (a) The cash impact of non-current available for sale financial assets used to hedge net financial debt (see Note 18) is presented under "IV. Financing activities" as "Purchase and proceeds from sale of current available for sale financial assets". (b) The distribution in kind of Herms shares in 2014 had no impact on cash, apart from related tax effects. See Note 8. (106) 201 27 The financial statements of Louis Vuitton are presented in Appendix A. The complete annual report, including the notes to its financial statements, is available at the company's website. Click here to view Appendix F. 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) What was the company's operating profit for 2016? % The 2016 operating profit was (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. Specimen Financial Statements: Louis Vuitton Louis Vuitton is a French company and is one of the leading international fashion houses in the world. Louis Vuitton has been named the world's most valuable luxury brand. Note that its financial statements are IFRS-based and are presented in euros (). The complete financial statements are available at the company's website. CONSOLIDATED INCOME STATEMENT (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 Notes. 23-24 7 23-24 25 2016 37,600 (13,039) 24,561 (14,607) (2,931) 3 7,026 (122) 6,904 2015 35,664 (12,553) 23,111 APP (13,830) (2,663) (13) 6,605 (221) 6,384 2014 30,638 (10,801) 19,837 (11,744) (2,373) (5) 5,715 (284) 5,431 CONSOLIDATED STATEMENT OF COMPREHENSIVE GAINS AND LOSSES (EUR millions) Net profit before minority interests Translation adjustments Amounts transferred to income statement Tax impact Change in value of available for sale financial assets Amounts transferred to income statement Tax impact Change in value of hedges of future foreign currency cash flows Amounts transferred to income statement Tax impact Gains and losses recognized in equity, transferable to income statement Change in value of vineyard land Amounts transferred to consolidated reserves Tax impact Notes 15.4 8, 13 6 2016 4,363 109 (32) (9) 68 18. 4 1 23 48 (26) (2) 20 111 30 - 108 138 2015 4,001 631 135 766 (32) (91) 20 (103) (63) 33 3 (27) 636 64 (21) 43 2014 6,105 534 104 638 494 (3,326) 184 (2,648) (30) (163) 57 (136) (2,146) (17) (10) 9 (18) Employee benefit commitments: change in value resulting from actuarial gains and losses Tax impact Gains and losses recognized in equity, not transferable to income statement Comprehensive income Minority interests Comprehensive income, Group share 29 (86) 17 (69) 69 4,543 (434) 4,109 42 (16) 26 69 4,706 (558) 4,148 (161) 52 (109) (127) 3,832 (565) 3,267 CONSOLIDATED BALANCE SHEET 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 Current assets Total assets Notes 346769N 8 27 10 11 12 14 2016 13,335 10,401 12,139 770 744 777 2,058 40,224 10,546 2,685 280 2,343 3,544 19,398 59,622 2015 13,572 10,122 11,157 729 574 552 1,945 38,651 10,096 2,521 384 2,355 3,594 18,950 57,601 2014 13,031 8,810 10,387 519 580 489 1,436 35,252 9,475 2,274 354 1,916 4,091 18,110 53,362 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 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 Total liabilities and equity Notes 15.1 15.1 15.2 15.4 17 18. 19 27 20 18 21.1 19. 21.2 2016 152 2,601 (520) 1,165 1,049 17,965 3,981 26,393 1,510 27,903 3,932 2,342 4,137 8,498 18,909 3,447 4,184 428 352 4,399 12,810 59,622 2015 152 2,579 (240) 1,137 949 16,189 3,573 24,339 1,460 25,799 4,511 1,950 4,685 7,957 19,103 3,769 3,960 640 421 3,909 12,699 57,601 2014 152 2,655 (374) 492 1,019 12,171 5,648 21,763 1,240 23,003 5,054 2,291 4,392 6,447 18,184 4,189 3,606 549 332 3,499 12,175 53,362 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR millions) Notes. As of December 31, 2013 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 Retirement of LVMH shares Capital increase in subsidiaries Interim and final dividends paid Distribution in kind of Herms shares Changes in control of consolidated entities Acquisition and disposal of minority interests' shares Number of shares Purchase commitments for minority interests' shares 507,793,661 980,323 (1,062,271) Share Share Treasury Cumulative capital premium shares and translation account LVMH adjustment share- settled derivatives 15.1 152 3,849 59 (50) (1,203) 15.2 (451) 27 50 15.4 (8) 500 500 Available for sale financial assets 2,855 (2,648) (2,648) Hedges of future foreign currency cash flows 136 (122) (122) Revaluation reserves Net profit and other reserves Vineyard Employee land benefit commit- ments 946 (15) (15) (37) (96) (96) 19,437 5,648 5,648 37 (17) (1,579) (5,652) (5) (2) (48) Group Minority share interests 26,879 (2,381) 5,648 3,267 37 10 59 (1,579) (6,855) (5) (2) (48) 17 1,028 27,907 108 (2,273) 6.105 3,832 457 565 2 - 3 (328) 11 32 Total equity Total (73) 39 10 59 3 (1,907) (6,855) 6 30 (121) As of December 31, 2014 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 Retirement of LVMH shares 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 507,711,713 552,137 (1,124,740) 152 2,655 35 (111) (374) 23 111 492 645 645 207 (103) (103) 14 (25) (25) 931 33 33 (133) 25 25 17,819 21,763 575 3,573 4,148 35 3,573 3,573 35 (13) (1,659) (9) 5 11 10 35 (1,659) (9) 5 11 1,240 130 428 558 2 89 (229) 1 (3) (198) 23,003 705 4,001 4,706 37 10 3.5 89 (1,888) (8) 2 (187) As of December 31, 2014 Gains and losses recognized in equity Net profit 507,711,713 Comprehensive income Stock option plan and similar expenses (Acquisition)/disposal of treasury shares and LVMH share-settled derivatives Exercise of LVMH share subscription options Retirement of LVMH shares 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 552,137 (1,124,740) 152 2,655 35 (111) (374) 23 111 492 645 645 207 (103) (103) 14 (25) (25) 931 33 33 (133) 25 25 17,819 3,573 3,573 35 (13) (1,659) (9) 5 11 21,763 575 3,573 4,148 35 10 35 (1,659) (9) 5 11 1,240 23,003 130 705 428 4,001 558 4,706 37 2 1 89 (229) 1 (3) (198) 10 35 89 (1,888) (8) 2 (187) As of December 31, 2015 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 Retirement of LVMH shares 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 (a) See Note 8. 507,139,110 907,929 (920,951) 507,126,088 152 152 2,579 64 (42) 2,601 (240) (322) 42 (520) 1,137 28 28 1,165 104 23 23 127 (11) 19. 19 8 964 113. 113 1,077 (108) 19,762 24,339 (55) 128 3,981 4,109 (55) 3,981 3,981 39 (21) (1,811) (5) (56) 57 (163) 21,946 39 (343) 64 (1,811) (5) (56) 57 26,393 1,460 25,799 52 382 434 2 41 (272) 22 (35) (142) 1,510 180 4,363 4,543 41 (343) 64 41 (2,083) 17 (91) (85) 27,903 (EUR millions) I. 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 al 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 Notes 14.2 14.3 8, 13 8 8 3 2.4 2016 6,904 18 2,143 (177) (155) 8,733 (59) (1,923) 6,751 (512) 6,239 (2,265) 3,974 (28) 91 6 (461) 310 (82) 2015 6,384 27 2,081 (456) (91) 7,945 (75) (1,807) 6,063 (429) 5,634 (1,955) 3,679 (78) 68 4 (265) (240) (511) 2014 5,431 26 1,895 (188) (84) 7,080 (116) (1,639) 5,325 (718) 4,607 (1,775) 2,832 (57) 160 69 (237) (167) (232) III. 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 SE Tax paid related to interim and final dividends paid Interim and final dividends paid to minority interests in consolidated subsidiaries Purchase and proceeds from sale of minority interests Net cash from (used in) transactions relating to equity Change in cash before financing activities IV. FINANCING ACTIVITIES Proceeds from borrowings Repayment of borrowings Purchase and proceeds from sale of current available for sale financial assets) 15.1 17 Net cash from (used in) financing activities V. EFFECT OF EXCHANGE RATE CHANGES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (I+II+III+IV+V) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS AT END OF PERIOD TOTAL TAX PAID 15.2 15.3 17 2.4 18.1 18.1 8, 13 64 41 14.1 14.1 (352) (1,810) (145) (267) (95) (2,564) 1,328 913 (2,134) 35 81 1 (1,671) (304) (228) (4) (2,090) 1,078 1,008 (2,443) (3) (1,438) (33) (393) 3,783 3,390 (2,376) 59 3 1 (1,619) (79) (336) 10 (1,961) 639 2,407 (2,100) (113) (1,334) (47) (53) 867 3,390 2,916 3,337 3,783 (2,529) (1,955) (a) The cash impact of non-current available for sale financial assets used to hedge net financial debt (see Note 18) is presented under "IV. Financing activities" as "Purchase and proceeds from sale of current available for sale financial assets". (b) The distribution in kind of Herms shares in 2014 had no impact on cash, apart from related tax effects. See Note 8. (106) 201 27 The financial statements of Louis Vuitton are presented in Appendix A. The complete annual report, including the notes to its financial statements, is available at the company's website. Click here to view Appendix F. 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) What was the company's operating profit for 2016? % The 2016 operating profit was (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. Specimen Financial Statements: Louis Vuitton Louis Vuitton is a French company and is one of the leading international fashion houses in the world. Louis Vuitton has been named the world's most valuable luxury brand. Note that its financial statements are IFRS-based and are presented in euros (). The complete financial statements are available at the company's website. CONSOLIDATED INCOME STATEMENT (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 Notes. 23-24 7 23-24 25 2016 37,600 (13,039) 24,561 (14,607) (2,931) 3 7,026 (122) 6,904 2015 35,664 (12,553) 23,111 APP (13,830) (2,663) (13) 6,605 (221) 6,384 2014 30,638 (10,801) 19,837 (11,744) (2,373) (5) 5,715 (284) 5,431 CONSOLIDATED STATEMENT OF COMPREHENSIVE GAINS AND LOSSES (EUR millions) Net profit before minority interests Translation adjustments Amounts transferred to income statement Tax impact Change in value of available for sale financial assets Amounts transferred to income statement Tax impact Change in value of hedges of future foreign currency cash flows Amounts transferred to income statement Tax impact Gains and losses recognized in equity, transferable to income statement Change in value of vineyard land Amounts transferred to consolidated reserves Tax impact Notes 15.4 8, 13 6 2016 4,363 109 (32) (9) 68 18. 4 1 23 48 (26) (2) 20 111 30 - 108 138 2015 4,001 631 135 766 (32) (91) 20 (103) (63) 33 3 (27) 636 64 (21) 43 2014 6,105 534 104 638 494 (3,326) 184 (2,648) (30) (163) 57 (136) (2,146) (17) (10) 9 (18) Employee benefit commitments: change in value resulting from actuarial gains and losses Tax impact Gains and losses recognized in equity, not transferable to income statement Comprehensive income Minority interests Comprehensive income, Group share 29 (86) 17 (69) 69 4,543 (434) 4,109 42 (16) 26 69 4,706 (558) 4,148 (161) 52 (109) (127) 3,832 (565) 3,267 CONSOLIDATED BALANCE SHEET 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 Current assets Total assets Notes 346769N 8 27 10 11 12 14 2016 13,335 10,401 12,139 770 744 777 2,058 40,224 10,546 2,685 280 2,343 3,544 19,398 59,622 2015 13,572 10,122 11,157 729 574 552 1,945 38,651 10,096 2,521 384 2,355 3,594 18,950 57,601 2014 13,031 8,810 10,387 519 580 489 1,436 35,252 9,475 2,274 354 1,916 4,091 18,110 53,362 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 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 Total liabilities and equity Notes 15.1 15.1 15.2 15.4 17 18. 19 27 20 18 21.1 19. 21.2 2016 152 2,601 (520) 1,165 1,049 17,965 3,981 26,393 1,510 27,903 3,932 2,342 4,137 8,498 18,909 3,447 4,184 428 352 4,399 12,810 59,622 2015 152 2,579 (240) 1,137 949 16,189 3,573 24,339 1,460 25,799 4,511 1,950 4,685 7,957 19,103 3,769 3,960 640 421 3,909 12,699 57,601 2014 152 2,655 (374) 492 1,019 12,171 5,648 21,763 1,240 23,003 5,054 2,291 4,392 6,447 18,184 4,189 3,606 549 332 3,499 12,175 53,362 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR millions) Notes. As of December 31, 2013 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 Retirement of LVMH shares Capital increase in subsidiaries Interim and final dividends paid Distribution in kind of Herms shares Changes in control of consolidated entities Acquisition and disposal of minority interests' shares Number of shares Purchase commitments for minority interests' shares 507,793,661 980,323 (1,062,271) Share Share Treasury Cumulative capital premium shares and translation account LVMH adjustment share- settled derivatives 15.1 152 3,849 59 (50) (1,203) 15.2 (451) 27 50 15.4 (8) 500 500 Available for sale financial assets 2,855 (2,648) (2,648) Hedges of future foreign currency cash flows 136 (122) (122) Revaluation reserves Net profit and other reserves Vineyard Employee land benefit commit- ments 946 (15) (15) (37) (96) (96) 19,437 5,648 5,648 37 (17) (1,579) (5,652) (5) (2) (48) Group Minority share interests 26,879 (2,381) 5,648 3,267 37 10 59 (1,579) (6,855) (5) (2) (48) 17 1,028 27,907 108 (2,273) 6.105 3,832 457 565 2 - 3 (328) 11 32 Total equity Total (73) 39 10 59 3 (1,907) (6,855) 6 30 (121) As of December 31, 2014 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 Retirement of LVMH shares 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 507,711,713 552,137 (1,124,740) 152 2,655 35 (111) (374) 23 111 492 645 645 207 (103) (103) 14 (25) (25) 931 33 33 (133) 25 25 17,819 21,763 575 3,573 4,148 35 3,573 3,573 35 (13) (1,659) (9) 5 11 10 35 (1,659) (9) 5 11 1,240 130 428 558 2 89 (229) 1 (3) (198) 23,003 705 4,001 4,706 37 10 3.5 89 (1,888) (8) 2 (187) As of December 31, 2014 Gains and losses recognized in equity Net profit 507,711,713 Comprehensive income Stock option plan and similar expenses (Acquisition)/disposal of treasury shares and LVMH share-settled derivatives Exercise of LVMH share subscription options Retirement of LVMH shares 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 552,137 (1,124,740) 152 2,655 35 (111) (374) 23 111 492 645 645 207 (103) (103) 14 (25) (25) 931 33 33 (133) 25 25 17,819 3,573 3,573 35 (13) (1,659) (9) 5 11 21,763 575 3,573 4,148 35 10 35 (1,659) (9) 5 11 1,240 23,003 130 705 428 4,001 558 4,706 37 2 1 89 (229) 1 (3) (198) 10 35 89 (1,888) (8) 2 (187) As of December 31, 2015 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 Retirement of LVMH shares 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 (a) See Note 8. 507,139,110 907,929 (920,951) 507,126,088 152 152 2,579 64 (42) 2,601 (240) (322) 42 (520) 1,137 28 28 1,165 104 23 23 127 (11) 19. 19 8 964 113. 113 1,077 (108) 19,762 24,339 (55) 128 3,981 4,109 (55) 3,981 3,981 39 (21) (1,811) (5) (56) 57 (163) 21,946 39 (343) 64 (1,811) (5) (56) 57 26,393 1,460 25,799 52 382 434 2 41 (272) 22 (35) (142) 1,510 180 4,363 4,543 41 (343) 64 41 (2,083) 17 (91) (85) 27,903 (EUR millions) I. 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 al 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 Notes 14.2 14.3 8, 13 8 8 3 2.4 2016 6,904 18 2,143 (177) (155) 8,733 (59) (1,923) 6,751 (512) 6,239 (2,265) 3,974 (28) 91 6 (461) 310 (82) 2015 6,384 27 2,081 (456) (91) 7,945 (75) (1,807) 6,063 (429) 5,634 (1,955) 3,679 (78) 68 4 (265) (240) (511) 2014 5,431 26 1,895 (188) (84) 7,080 (116) (1,639) 5,325 (718) 4,607 (1,775) 2,832 (57) 160 69 (237) (167) (232) III. 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 SE Tax paid related to interim and final dividends paid Interim and final dividends paid to minority interests in consolidated subsidiaries Purchase and proceeds from sale of minority interests Net cash from (used in) transactions relating to equity Change in cash before financing activities IV. FINANCING ACTIVITIES Proceeds from borrowings Repayment of borrowings Purchase and proceeds from sale of current available for sale financial assets) 15.1 17 Net cash from (used in) financing activities V. EFFECT OF EXCHANGE RATE CHANGES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (I+II+III+IV+V) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS AT END OF PERIOD TOTAL TAX PAID 15.2 15.3 17 2.4 18.1 18.1 8, 13 64 41 14.1 14.1 (352) (1,810) (145) (267) (95) (2,564) 1,328 913 (2,134) 35 81 1 (1,671) (304) (228) (4) (2,090) 1,078 1,008 (2,443) (3) (1,438) (33) (393) 3,783 3,390 (2,376) 59 3 1 (1,619) (79) (336) 10 (1,961) 639 2,407 (2,100) (113) (1,334) (47) (53) 867 3,390 2,916 3,337 3,783 (2,529) (1,955) (a) The cash impact of non-current available for sale financial assets used to hedge net financial debt (see Note 18) is presented under "IV. Financing activities" as "Purchase and proceeds from sale of current available for sale financial assets". (b) The distribution in kind of Herms shares in 2014 had no impact on cash, apart from related tax effects. See Note 8. (106) 201 27 The financial statements of Louis Vuitton are presented in Appendix A. The complete annual report, including the notes to its financial statements, is available at the company's website. Click here to view Appendix F. 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) What was the company's operating profit for 2016? % The 2016 operating profit was (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. Specimen Financial Statements: Louis Vuitton Louis Vuitton is a French company and is one of the leading international fashion houses in the world. Louis Vuitton has been named the world's most valuable luxury brand. Note that its financial statements are IFRS-based and are presented in euros (). The complete financial statements are available at the company's website. CONSOLIDATED INCOME STATEMENT (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 Notes. 23-24 7 23-24 25 2016 37,600 (13,039) 24,561 (14,607) (2,931) 3 7,026 (122) 6,904 2015 35,664 (12,553) 23,111 APP (13,830) (2,663) (13) 6,605 (221) 6,384 2014 30,638 (10,801) 19,837 (11,744) (2,373) (5) 5,715 (284) 5,431 CONSOLIDATED STATEMENT OF COMPREHENSIVE GAINS AND LOSSES (EUR millions) Net profit before minority interests Translation adjustments Amounts transferred to income statement Tax impact Change in value of available for sale financial assets Amounts transferred to income statement Tax impact Change in value of hedges of future foreign currency cash flows Amounts transferred to income statement Tax impact Gains and losses recognized in equity, transferable to income statement Change in value of vineyard land Amounts transferred to consolidated reserves Tax impact Notes 15.4 8, 13 6 2016 4,363 109 (32) (9) 68 18. 4 1 23 48 (26) (2) 20 111 30 - 108 138 2015 4,001 631 135 766 (32) (91) 20 (103) (63) 33 3 (27) 636 64 (21) 43 2014 6,105 534 104 638 494 (3,326) 184 (2,648) (30) (163) 57 (136) (2,146) (17) (10) 9 (18) Employee benefit commitments: change in value resulting from actuarial gains and losses Tax impact Gains and losses recognized in equity, not transferable to income statement Comprehensive income Minority interests Comprehensive income, Group share 29 (86) 17 (69) 69 4,543 (434) 4,109 42 (16) 26 69 4,706 (558) 4,148 (161) 52 (109) (127) 3,832 (565) 3,267 CONSOLIDATED BALANCE SHEET 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 Current assets Total assets Notes 346769N 8 27 10 11 12 14 2016 13,335 10,401 12,139 770 744 777 2,058 40,224 10,546 2,685 280 2,343 3,544 19,398 59,622 2015 13,572 10,122 11,157 729 574 552 1,945 38,651 10,096 2,521 384 2,355 3,594 18,950 57,601 2014 13,031 8,810 10,387 519 580 489 1,436 35,252 9,475 2,274 354 1,916 4,091 18,110 53,362 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 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 Total liabilities and equity Notes 15.1 15.1 15.2 15.4 17 18. 19 27 20 18 21.1 19. 21.2 2016 152 2,601 (520) 1,165 1,049 17,965 3,981 26,393 1,510 27,903 3,932 2,342 4,137 8,498 18,909 3,447 4,184 428 352 4,399 12,810 59,622 2015 152 2,579 (240) 1,137 949 16,189 3,573 24,339 1,460 25,799 4,511 1,950 4,685 7,957 19,103 3,769 3,960 640 421 3,909 12,699 57,601 2014 152 2,655 (374) 492 1,019 12,171 5,648 21,763 1,240 23,003 5,054 2,291 4,392 6,447 18,184 4,189 3,606 549 332 3,499 12,175 53,362 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR millions) Notes. As of December 31, 2013 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 Retirement of LVMH shares Capital increase in subsidiaries Interim and final dividends paid Distribution in kind of Herms shares Changes in control of consolidated entities Acquisition and disposal of minority interests' shares Number of shares Purchase commitments for minority interests' shares 507,793,661 980,323 (1,062,271) Share Share Treasury Cumulative capital premium shares and translation account LVMH adjustment share- settled derivatives 15.1 152 3,849 59 (50) (1,203) 15.2 (451) 27 50 15.4 (8) 500 500 Available for sale financial assets 2,855 (2,648) (2,648) Hedges of future foreign currency cash flows 136 (122) (122) Revaluation reserves Net profit and other reserves Vineyard Employee land benefit commit- ments 946 (15) (15) (37) (96) (96) 19,437 5,648 5,648 37 (17) (1,579) (5,652) (5) (2) (48) Group Minority share interests 26,879 (2,381) 5,648 3,267 37 10 59 (1,579) (6,855) (5) (2) (48) 17 1,028 27,907 108 (2,273) 6.105 3,832 457 565 2 - 3 (328) 11 32 Total equity Total (73) 39 10 59 3 (1,907) (6,855) 6 30 (121) As of December 31, 2014 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 Retirement of LVMH shares 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 507,711,713 552,137 (1,124,740) 152 2,655 35 (111) (374) 23 111 492 645 645 207 (103) (103) 14 (25) (25) 931 33 33 (133) 25 25 17,819 21,763 575 3,573 4,148 35 3,573 3,573 35 (13) (1,659) (9) 5 11 10 35 (1,659) (9) 5 11 1,240 130 428 558 2 89 (229) 1 (3) (198) 23,003 705 4,001 4,706 37 10 3.5 89 (1,888) (8) 2 (187) As of December 31, 2014 Gains and losses recognized in equity Net profit 507,711,713 Comprehensive income Stock option plan and similar expenses (Acquisition)/disposal of treasury shares and LVMH share-settled derivatives Exercise of LVMH share subscription options Retirement of LVMH shares 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 552,137 (1,124,740) 152 2,655 35 (111) (374) 23 111 492 645 645 207 (103) (103) 14 (25) (25) 931 33 33 (133) 25 25 17,819 3,573 3,573 35 (13) (1,659) (9) 5 11 21,763 575 3,573 4,148 35 10 35 (1,659) (9) 5 11 1,240 23,003 130 705 428 4,001 558 4,706 37 2 1 89 (229) 1 (3) (198) 10 35 89 (1,888) (8) 2 (187) As of December 31, 2015 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 Retirement of LVMH shares 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 (a) See Note 8. 507,139,110 907,929 (920,951) 507,126,088 152 152 2,579 64 (42) 2,601 (240) (322) 42 (520) 1,137 28 28 1,165 104 23 23 127 (11) 19. 19 8 964 113. 113 1,077 (108) 19,762 24,339 (55) 128 3,981 4,109 (55) 3,981 3,981 39 (21) (1,811) (5) (56) 57 (163) 21,946 39 (343) 64 (1,811) (5) (56) 57 26,393 1,460 25,799 52 382 434 2 41 (272) 22 (35) (142) 1,510 180 4,363 4,543 41 (343) 64 41 (2,083) 17 (91) (85) 27,903 (EUR millions) I. 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 al 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 Notes 14.2 14.3 8, 13 8 8 3 2.4 2016 6,904 18 2,143 (177) (155) 8,733 (59) (1,923) 6,751 (512) 6,239 (2,265) 3,974 (28) 91 6 (461) 310 (82) 2015 6,384 27 2,081 (456) (91) 7,945 (75) (1,807) 6,063 (429) 5,634 (1,955) 3,679 (78) 68 4 (265) (240) (511) 2014 5,431 26 1,895 (188) (84) 7,080 (116) (1,639) 5,325 (718) 4,607 (1,775) 2,832 (57) 160 69 (237) (167) (232) III. 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 SE Tax paid related to interim and final dividends paid Interim and final dividends paid to minority interests in consolidated subsidiaries Purchase and proceeds from sale of minority interests Net cash from (used in) transactions relating to equity Change in cash before financing activities IV. FINANCING ACTIVITIES Proceeds from borrowings Repayment of borrowings Purchase and proceeds from sale of current available for sale financial assets) 15.1 17 Net cash from (used in) financing activities V. EFFECT OF EXCHANGE RATE CHANGES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (I+II+III+IV+V) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS AT END OF PERIOD TOTAL TAX PAID 15.2 15.3 17 2.4 18.1 18.1 8, 13 64 41 14.1 14.1 (352) (1,810) (145) (267) (95) (2,564) 1,328 913 (2,134) 35 81 1 (1,671) (304) (228) (4) (2,090) 1,078 1,008 (2,443) (3) (1,438) (33) (393) 3,783 3,390 (2,376) 59 3 1 (1,619) (79) (336) 10 (1,961) 639 2,407 (2,100) (113) (1,334) (47) (53) 867 3,390 2,916 3,337 3,783 (2,529) (1,955) (a) The cash impact of non-current available for sale financial assets used to hedge net financial debt (see Note 18) is presented under "IV. Financing activities" as "Purchase and proceeds from sale of current available for sale financial assets". (b) The distribution in kind of Herms shares in 2014 had no impact on cash, apart from related tax effects. See Note 8. (106) 201 27 The financial statements of Louis Vuitton are presented in Appendix A. The complete annual report, including the notes to its financial statements, is available at the company's website. Click here to view Appendix F. 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) What was the company's operating profit for 2016? % The 2016 operating profit was (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. Specimen Financial Statements: Louis Vuitton Louis Vuitton is a French company and is one of the leading international fashion houses in the world. Louis Vuitton has been named the world's most valuable luxury brand. Note that its financial statements are IFRS-based and are presented in euros (). The complete financial statements are available at the company's website. CONSOLIDATED INCOME STATEMENT (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 Notes. 23-24 7 23-24 25 2016 37,600 (13,039) 24,561 (14,607) (2,931) 3 7,026 (122) 6,904 2015 35,664 (12,553) 23,111 APP (13,830) (2,663) (13) 6,605 (221) 6,384 2014 30,638 (10,801) 19,837 (11,744) (2,373) (5) 5,715 (284) 5,431 CONSOLIDATED STATEMENT OF COMPREHENSIVE GAINS AND LOSSES (EUR millions) Net profit before minority interests Translation adjustments Amounts transferred to income statement Tax impact Change in value of available for sale financial assets Amounts transferred to income statement Tax impact Change in value of hedges of future foreign currency cash flows Amounts transferred to income statement Tax impact Gains and losses recognized in equity, transferable to income statement Change in value of vineyard land Amounts transferred to consolidated reserves Tax impact Notes 15.4 8, 13 6 2016 4,363 109 (32) (9) 68 18. 4 1 23 48 (26) (2) 20 111 30 - 108 138 2015 4,001 631 135 766 (32) (91) 20 (103) (63) 33 3 (27) 636 64 (21) 43 2014 6,105 534 104 638 494 (3,326) 184 (2,648) (30) (163) 57 (136) (2,146) (17) (10) 9 (18) Employee benefit commitments: change in value resulting from actuarial gains and losses Tax impact Gains and losses recognized in equity, not transferable to income statement Comprehensive income Minority interests Comprehensive income, Group share 29 (86) 17 (69) 69 4,543 (434) 4,109 42 (16) 26 69 4,706 (558) 4,148 (161) 52 (109) (127) 3,832 (565) 3,267 CONSOLIDATED BALANCE SHEET 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 Current assets Total assets Notes 346769N 8 27 10 11 12 14 2016 13,335 10,401 12,139 770 744 777 2,058 40,224 10,546 2,685 280 2,343 3,544 19,398 59,622 2015 13,572 10,122 11,157 729 574 552 1,945 38,651 10,096 2,521 384 2,355 3,594 18,950 57,601 2014 13,031 8,810 10,387 519 580 489 1,436 35,252 9,475 2,274 354 1,916 4,091 18,110 53,362 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 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 Total liabilities and equity Notes 15.1 15.1 15.2 15.4 17 18. 19 27 20 18 21.1 19. 21.2 2016 152 2,601 (520) 1,165 1,049 17,965 3,981 26,393 1,510 27,903 3,932 2,342 4,137 8,498 18,909 3,447 4,184 428 352 4,399 12,810 59,622 2015 152 2,579 (240) 1,137 949 16,189 3,573 24,339 1,460 25,799 4,511 1,950 4,685 7,957 19,103 3,769 3,960 640 421 3,909 12,699 57,601 2014 152 2,655 (374) 492 1,019 12,171 5,648 21,763 1,240 23,003 5,054 2,291 4,392 6,447 18,184 4,189 3,606 549 332 3,499 12,175 53,362 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR millions) Notes. As of December 31, 2013 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 Retirement of LVMH shares Capital increase in subsidiaries Interim and final dividends paid Distribution in kind of Herms shares Changes in control of consolidated entities Acquisition and disposal of minority interests' shares Number of shares Purchase commitments for minority interests' shares 507,793,661 980,323 (1,062,271) Share Share Treasury Cumulative capital premium shares and translation account LVMH adjustment share- settled derivatives 15.1 152 3,849 59 (50) (1,203) 15.2 (451) 27 50 15.4 (8) 500 500 Available for sale financial assets 2,855 (2,648) (2,648) Hedges of future foreign currency cash flows 136 (122) (122) Revaluation reserves Net profit and other reserves Vineyard Employee land benefit commit- ments 946 (15) (15) (37) (96) (96) 19,437 5,648 5,648 37 (17) (1,579) (5,652) (5) (2) (48) Group Minority share interests 26,879 (2,381) 5,648 3,267 37 10 59 (1,579) (6,855) (5) (2) (48) 17 1,028 27,907 108 (2,273) 6.105 3,832 457 565 2 - 3 (328) 11 32 Total equity Total (73) 39 10 59 3 (1,907) (6,855) 6 30 (121) As of December 31, 2014 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 Retirement of LVMH shares 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 507,711,713 552,137 (1,124,740) 152 2,655 35 (111) (374) 23 111 492 645 645 207 (103) (103) 14 (25) (25) 931 33 33 (133) 25 25 17,819 21,763 575 3,573 4,148 35 3,573 3,573 35 (13) (1,659) (9) 5 11 10 35 (1,659) (9) 5 11 1,240 130 428 558 2 89 (229) 1 (3) (198) 23,003 705 4,001 4,706 37 10 3.5 89 (1,888) (8) 2 (187) As of December 31, 2014 Gains and losses recognized in equity Net profit 507,711,713 Comprehensive income Stock option plan and similar expenses (Acquisition)/disposal of treasury shares and LVMH share-settled derivatives Exercise of LVMH share subscription options Retirement of LVMH shares 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 552,137 (1,124,740) 152 2,655 35 (111) (374) 23 111 492 645 645 207 (103) (103) 14 (25) (25) 931 33 33 (133) 25 25 17,819 3,573 3,573 35 (13) (1,659) (9) 5 11 21,763 575 3,573 4,148 35 10 35 (1,659) (9) 5 11 1,240 23,003 130 705 428 4,001 558 4,706 37 2 1 89 (229) 1 (3) (198) 10 35 89 (1,888) (8) 2 (187) As of December 31, 2015 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 Retirement of LVMH shares 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 (a) See Note 8. 507,139,110 907,929 (920,951) 507,126,088 152 152 2,579 64 (42) 2,601 (240) (322) 42 (520) 1,137 28 28 1,165 104 23 23 127 (11) 19. 19 8 964 113. 113 1,077 (108) 19,762 24,339 (55) 128 3,981 4,109 (55) 3,981 3,981 39 (21) (1,811) (5) (56) 57 (163) 21,946 39 (343) 64 (1,811) (5) (56) 57 26,393 1,460 25,799 52 382 434 2 41 (272) 22 (35) (142) 1,510 180 4,363 4,543 41 (343) 64 41 (2,083) 17 (91) (85) 27,903 (EUR millions) I. 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 al 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 Notes 14.2 14.3 8, 13 8 8 3 2.4 2016 6,904 18 2,143 (177) (155) 8,733 (59) (1,923) 6,751 (512) 6,239 (2,265) 3,974 (28) 91 6 (461) 310 (82) 2015 6,384 27 2,081 (456) (91) 7,945 (75) (1,807) 6,063 (429) 5,634 (1,955) 3,679 (78) 68 4 (265) (240) (511) 2014 5,431 26 1,895 (188) (84) 7,080 (116) (1,639) 5,325 (718) 4,607 (1,775) 2,832 (57) 160 69 (237) (167) (232) III. 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 SE Tax paid related to interim and final dividends paid Interim and final dividends paid to minority interests in consolidated subsidiaries Purchase and proceeds from sale of minority interests Net cash from (used in) transactions relating to equity Change in cash before financing activities IV. FINANCING ACTIVITIES Proceeds from borrowings Repayment of borrowings Purchase and proceeds from sale of current available for sale financial assets) 15.1 17 Net cash from (used in) financing activities V. EFFECT OF EXCHANGE RATE CHANGES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (I+II+III+IV+V) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS AT END OF PERIOD TOTAL TAX PAID 15.2 15.3 17 2.4 18.1 18.1 8, 13 64 41 14.1 14.1 (352) (1,810) (145) (267) (95) (2,564) 1,328 913 (2,134) 35 81 1 (1,671) (304) (228) (4) (2,090) 1,078 1,008 (2,443) (3) (1,438) (33) (393) 3,783 3,390 (2,376) 59 3 1 (1,619) (79) (336) 10 (1,961) 639 2,407 (2,100) (113) (1,334) (47) (53) 867 3,390 2,916 3,337 3,783 (2,529) (1,955) (a) The cash impact of non-current available for sale financial assets used to hedge net financial debt (see Note 18) is presented under "IV. Financing activities" as "Purchase and proceeds from sale of current available for sale financial assets". (b) The distribution in kind of Herms shares in 2014 had no impact on cash, apart from related tax effects. See Note 8. (106) 201 27