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? (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. (EUR millions, except for earnings per share) Notes 2016 2015 2014 23-24 Revenue Cost of sales 37,600 (13,039) 35,664 (12,553) 30,638 (10,801) 19,837 23,111 Gross margin Marketing and selling expenses General and administrative expenses Income (oss) from joint ventures and associates Profit from recurring operations Other operating income and expenses 24,561 (14,607) (2,931) 3 (13,830) (2,663) (13) (11,744) (2,373) (5) 7 23-24 7,026 6,605 5,715 25 (122) (221) (284) 6,904 6,384 5,431 (115) Operating profit Cost of net financial debt Other financial income and expenses Net financial income (expense) (83) (349) (432) (78) (336) 3,062 26 (414) 2,947 Income taxes 27 (2,109) (1,969) (2,273) Net profit before minority interests 4,363 4,001 6,105 17 (382) (428) (457) Minority interests Net profit, Group share 3,981 3,573 5,648 28 7.11 Basic Group share of net earnings per share (EUR) Number of shares on which the calculation is based 7.92 502,911,125 11.27 501,309,369 11.21 503,861,733 28 7.89 502,395,491 7.08 504,894,946 Diluted Group share of net earnings per share (EUR) Number of shares on which the calculation is based 504,640,459 (EUR millions) Notes 2016 2015 2014 Net profit before minority interests 4,363 4,001 6,105 15.4 631 534 Translation adjustments Amounts transferred to income statement Tax impact 109 (32) (9) 135 104 68 766 638 8,13 494 Change in value of available for sale financial assets Amounts transferred to income statement Tax impact 18 4 (32) (91) 20 (3,326) 184 1 23 (103) (2,648) Change in value of hedges of future foreign currency cash flows Amounts transferred to income statement Tax impact 48 (26) (2) (63) 33 (30) (163) 57 3 20 (27) (136) Gains and losses recognized in equity, transferable to income statement 111 636 (2,146) 6 30 64 Change in value of vineyard land Amounts transferred to consolidated reserves Tax impact (17) (10) 9 108 (21) 138 43 (18) Employee benefit commitments: change in value resulting from actuarial gains and losses Tax impact 29 (86) 17 42 (16) (161) 52 (69) 26 (109) Gains and losses recognized in equity, not transferable to income statement 69 69 (127) Comprehensive income Minority interests 4,543 (434) 4,706 (558) 3,832 (565) Comprehensive income, Group share 4,109 4,148 3,267 Notes 2016 2015 2014 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 3 4 6 7 8 9 27 13,335 10,401 12,139 770 744 777 2,058 13,572 10,122 11,157 729 574 552 1,945 13,031 8,810 10,387 519 580 489 1,436 Non-current assets 40,224 38,651 35,252 10 11 Inventories and work in progress Trade accounts receivable Income taxes Other current assets Cash and cash equivalents 10,546 2,685 280 2,343 3,544 10,096 2,521 384 2,355 3,594 9,475 2,274 354 1,916 4,091 12 14 Current assets 19,398 18,950 18,110 Total assets 59,622 57,601 53,362 Notes 2016 2015 2014 LIABILITIES AND EQUITY (EUR millions) 15.1 15.1 15.2 15.4 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 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 27,903 25,799 23,003 Long-term borrowings Non-current provisions Deferred tax Other non-current liabilities 18 19 27 20 3,932 2,342 4,137 8,498 4,511 1,950 4,685 7,957 5,054 2,291 4,392 6,447 18,909 19,103 18,184 Non-current liabilities Short-term borrowings Trade accounts payable Income taxes Current provisions Other current liabilities 18 21.1 3,447 4,184 428 352 4,399 3,769 3,960 640 421 3,909 4,189 3,606 549 332 3,499 19 21.2 Current liabilities 12,810 12,699 12,175 Total liabilities and equity 59,622 57,601 53,362 Notes 2016 2015 2014 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 3 4 6 7 8 9 27 13,335 10,401 12,139 770 744 777 2,058 13,572 10,122 11,157 729 574 552 1,945 13,031 8,810 10,387 519 580 489 1,436 Non-current assets 40,224 38,651 35,252 10 11 Inventories and work in progress Trade accounts receivable Income taxes Other current assets Cash and cash equivalents 10,546 2,685 280 2,343 3,544 10,096 2,521 384 2,355 3,594 9,475 2,274 354 1,916 4,091 12 14 Current assets 19,398 18,950 18,110 Total assets 59,622 57,601 53,362 Notes 2016 2015 2014 LIABILITIES AND EQUITY (EUR millions) 15.1 15.1 15.2 15.4 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 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 27,903 25,799 23,003 Long-term borrowings Non-current provisions Deferred tax Other non-current liabilities 18 19 27 20 3,932 2,342 4,137 8,498 4,511 1,950 4,685 7,957 5,054 2,291 4,392 6,447 18,909 19,103 18,184 Non-current liabilities Short-term borrowings Trade accounts payable Income taxes Current provisions Other current liabilities 18 21.1 3,447 4,184 428 352 4,399 3,769 3,960 640 421 3,909 4,189 3,606 549 332 3,499 19 21.2 Current liabilities 12,810 12,699 12,175 Total liabilities and equity 59,622 57,601 53,362 (EUR millions) Number of shares Share capital Share Treasury Cumulative premium shares and translation account LVMH adjustment Available share- for sale settled financial derivatives assets Revaluation reserves Vineyard Employee land benefit commit- ments Net profit and other reserves Group share Hedges of future foreign currency cash flows Total equity Minority Total interests 15.1 15.4 15.2 (451) 17 1,028 152 3,849 (8) 2,855 136 946 (37) 19,437 26,879 500 (2,648) (122) (15) 196) 2.381) 5,648 3.267 108 457 27,907 (2.273) 6,105 3,832 5,648 5,648 500 (2,648) (122) (15) (96) 565 37 37 2 39 27 (17) 10 10 59 59 59 (50) 50 3 328) 3 (1,907) (1,579) (1,579) (1,203) 5,652) 16,855) 16,855) (5) (5) 11 6 (2) 21 32 30 (48) 17,819 (73) 1.240 152 2,655 (374) 492 14 207 (103) 931 33 (133) 25 (48) 21,763 575 3,573 645 (25) 130 (121) 23,003 705 4,001 4,706 37 3,573 645 (103) (25) 33 25 3,573 35 4,148 35 428 558 2 23 (13) 10 10 Notes As of December 31, 2013 507,793,661 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 980,323 Retirement of LVMH shares (1,062,271) 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 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 (1,124,740) 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 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 907,929 Retirement of LVMH shares (920,951) 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 507,126,088 35 35 35 (111) 111 (1,659) (1,659) 89 (229) 89 (1,888) (9) 9) 1 (8) 5 5 (3) 2 11 11 19,762 (198) 1,460 (187) 25,799 152 2.579 (240) 1,137 104 (11) 964 (108) 24,339 28 23 19 113 (55) 128 3,981 3,981 4,109 52 382 434 180 4,363 4,543 28 23 19 113 (55) 3,981 39 39 2 41 (322) (21) 343) (343) 64 64 64 (42) 42 41 12721 41 2,083) (1,811) (1,811) 5) 5) 22 17 (56 (56) (35) (91) 57 57 26,393 (142) 1,510 (85) 27,903 152 2,601 (520) 1,165 127 8 1,077 (163) 21,946 a) See Note 8 EUR millions) Notes 2016 2015 2014 7 6,904 18 2,143 (177) (155) 6,384 27 2,081 (456) (91) 5,431 26 1,895 (188) (84) 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 7,945 8,733 (59) (1,923) (75) (1,807) 7,080 (116) (1,639) 6,063 14.2 6,751 (512) 5,325 (718) (429) 2.4 Net cash from operating activities 6,239 5,634 4,607 Operating investments 14.3 (2,265) (1,955) (1,775) Net cash from operating activities and operating investments (free cash flow) 3,974 3,679 2,832 II. FINANCIAL INVESTMENTS Purchase of non-current available for sale financial assets 8,13 (28) (78) (57) Proceeds from sale of non-current available for sale financial assets 8 91 68 160 Dividends received 8 6 4 69 Tax paid related to non-current available for sale financial assets and consolidated investments (461) (265) (237) Impact of purchase and sale of consolidated investments 2.4 310 (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 3 Acquisition and disposals of treasury shares and LVMH share-settled derivatives 15.2 (352) 1 1 Interim and final dividends paid by LVMH SEO 15.3 (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 2.4 (95) (4) 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) (2,100) 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) (1,438) 201 V. EFFECT OF EXCHANGE RATE CHANGES (47) (33) 27 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1+Il+Ill+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) (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 Hermes shares in 2014 had no impact on cash, apart from related tax effects. See Note 8