x Your answer is incorrect. Try again. Columbia Sportswear Company's financial statements are presented in Appendix B. Click here to view Appendix B. Financial statements of VF Corporation are presented in Appendix C. Click here to view Appendix C. (a) Based on the information contained in these financial statements, compute free cash flow for each company. (Show a negative free cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000). Enter amounts in thousands.) Columbia Sportswear Company VF Corporation Free cash flow (in thousands) 154000 164500 COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year Ended December 31, 2016 2015 2014 Net sales ..................................................... $ 2,377,045 $ 2,326,180 $2,100,590 .................................................. 1,266,697 1,252,680 1,145,639 Gross profit................ .......... 1,110,348 1,073,500 954,951 Selling, general and administrative expenses ......................... 864,084 831,971 763,063 Net licensing income............................................ 10,244 8,192 6,956 om operations ......................................... 256,508 249,721 198,844 Interest income, net....................... . . 2,003 1,531 1,004 . Interest expense on note payable to related party (Note 22). ............. (1,041) (1,099) (1,053) Other non-operating expense ..................................... (572) (2.834) (274) Income before income tax.... .................................... 256,898 2 47,319 198,521 Income tax expense (Note 10) .......... (58,459) (67,468) (56,662) Net income ... ............................ 198,439 179,851 141,859 Net income attributable to non-controlling interest ...................... 6,541 5,514 4,686 Net income attributable to Columbia Sportswear Company ............. $ 191.898 $ 174.337 $ 137.173 Earnings per share attributable to Columbia Sportswear Company (Note 16): ............. $ 2.75 $ 2.48 $ 1.97 Diluted ................................................... ........... 2. 72 2 .45 1.94 Weighted average shares outstanding (Note 16): Basic.......... 69,683 70,162 6 9,807 Diluted ....... 70,632 71,064 70,681 Basic....... COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Year Ended December 31. 2016 2015 198,439 $ 179,851 $ 2014 141.859 (2) (6) 10 843 (2.908) 7.751 Net income ............ ............... $ Other comprehensive loss: Unrealized holding gains (losses) on available-for-sale securities (net of tax effects of $0,($3), and (55), respectively)... Unrealized gains (losses) on derivative transactions (net of tax effects of $1,922), ($849) and ($1,507), respectively)... Foreign currency translation adjustments (net of tax effects of ($347), (S760) and $1,023, respectively)...... Other comprehensive loss............. Comprehensive income..................... . ........... Comprehensive income attributable to non-controlling interest. .......... Comprehensive income attributable to Columbia Sportswear Company.... $ (4,485) (3,644) 194,795 4,678 190,117 (34,887) (37.801) 142,050 4,382 137,668 $ (27.789) (20.028) 121,831 4.185 117.646 $ COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED BALANCE SHEETS (In thousands) December 31. 2016 2015 ASSETS $ 551,389 $ 369,770 472 629 333.678 371.953 487.997 473.637 38.487 33.400 1.412.023 1.249.389 279.650 291,687 133.438 138,584 68.594 68.594 92.494 76.181 27.695 21.718 $2.013.894 $ 1.846,153 $ $ Current Assets: Cash and cash equivalents................................................ Short-term investments ............. .. .......... Accounts receivable, net (Note 5)..................... .............. Inventories........ .. Prepaid expenses and other current assets..... Total current assets. Property, plant, and equipment, net (Note 6).... Intangible assets, net (Note 7) Goodwill (Note 7). . Deferred income taxes (Note 10).... Other non-current assets......... Total assets. ...... LIABILITIES AND EQUITY Current Liabilities: Short-term borrowings (Note 8)........................................... Accounts payable............. .................... . Accrued liabilities (Note 9). .......... Income taxes payable (Note 10) ............... ........ . ......... ..... Total current liabilities.............................. . . . ... ..... Note payable to related party (Note 22) ... ............ ... .. Other long-term liabilities (Notes 11, 12).... Income taxes payable (Note 10) ............ Deferred income taxes (Note 10) ................. Total liabilities ............ Commitments and contingencies (Note 13) Shareholders' Equity Preferred stock; 10,000 shares authorized: none issued and outstanding .......... Common stock (no par value): 250,000 shares authorized: 69,873 and 69.277 issued and outstanding (Note 14)............................ .... ............ ....... Accumulated other comprehensive loss (Note 17) ............................. Total Columbia Sportswear Company shareholders' equity ....... Non-controlling interest (Note 4)....... .. . . Total equity.... ...... . E Total liabilities and equity ................... . - 215,048 142.158 5.645 362.851 14.053 42.622 12.710 147 432.383 1.940 217,230 141.862 5.038 366,070 15.030 40.172 8.839 229 430.340 Relat CITRITIS H 53.801 1.529.636 (22.617) 1.560.820 20.691 1,581,511 $ 2.013.894 34.776 .385.860 (20,836) 1.399.800 16,013 1.415.813 $ 1.846,153 2016 2015 2014 $ 198,439 $ 179,851 $ 141.859 54,017 481 60,016 4,805 (19,178) 10.986 56,521 5,098 (11.709) 11,672 (7,873) (6,978) 11,120 (4.927) 36,710 (18.777) (5,452) (5,948) 1,483 4,847 4,768 2,468 275,167 (40,419) (103,296) 4.411 (2,524) 11,418 (2.017) (10,994) 4.966 95,105 (31,478) (62,086) (4.869) 4.291 41,941 35.051 1,166 6,195 185,783 Cash flows from operating activities: Net income................................................... Adjustments to reconcile net income to net cash provided by operating activities: ...... Depreciation and amortization .... Loss on disposal or impairment of property, plant, and equipment.... Deferred income taxes. Stock-based compensation.......... Excess tax benefit from employee stock plans....... Changes in operating assets and liabilities: .. Accounts receivable .......... Inventories ....... . Prepaid expenses and other current assets ....... Other assets........ Accounts payable ................... Accrued liabilities..................................... Income taxes payable ................................... Other liabilities ......... Net cash provided by operating activities................ Cash flows from investing activities: Acquisition of business, net of cash acquired ........................ Purchases of short-term investments ............................... Sales of short-term investments................................... Capital expenditures....... ............ ........... Proceeds from sale of property, plant, and equipment................... Nel cash used in investing activities.................... Cash flows from financing activities: Proceeds from credit facilities.. ....... Repayments on credit facilities . . . . . . . . . . . . . . . ... Proceeds from issuance of common stock under employee stock plans.... Tax payments related to restricted stock unit issuances.... Excess tax benefit from employee stock plans ............... Repurchase of common stock ............. Cash dividends paid............. Proceeds from note payable to related party ......... Net cash used in financing activities... Net effect of exchange rate changes on cash. Net increase (decrease) in cash and cash equivalents.... Cash and cash equivalents, beginning of year. Cash and cash equivalents, end of year.. ....... Supplemental disclosures of cash flow information: Cash paid during the year for income taxes. ... Cash paid during the year for interest on note payable to related party.... Supplemental disclosures of non-cash investing activities: Capital expenditures incurred but not yet paid .......... (21,263) 21,263 (49,987) 97 (49,890) (38,208) 64.980 (69,917) 144 (43,001) (188.467) (48,243) 112,895 (60,283) 71 (184,027) 62,885 (64,825) 13,167 (5,117) 53,429 (51,479) 17,442 (4,895) 7.873 (70,068) (43,547) (48,122) 52.356 (52,205) 22,277 (3,141) 4.927 (15,000) (39,836) 16.072 (14.550) (11,137) (23,931) 437.489 413.558 (42,023) (1,635) 181,619 369,770 551,389 $ (91,245) (4.647) (43,788) 413,558 369,770 $ $ $ $ $ 70,424 1,049 87,350 1,115 53,958 838 2,710 4 ,698 7,196 CONSOLIDATED STATEMENTS OF EQUITY (In thousands) Total S 1,252,864 141,859 10 7,751 (27,789) (39.836 19.136 5,119 11,120 (15.000) 1.355.234 179,851 (6) T Columbia Sportswear Company Shareholders' Equity Common Stock Accumulated Other Non- Shares Retained Comprehensive Controlling Outstanding Amount Earnings Income (Loss) Interest BALANCE, JANUARY 1, 2014 69,190 $ 52,325 $1,157,733 $ 35,360 S 7,446 Net income.... ... . - 137.173 - 4,686 Other comprehensive income (loss): Unrealized holding gains on available for sale securities, net ... .... .. - - 10 - Unrealized holding gains on derivative transactions, net 7,751 Foreign currency translation adjustment, net.. (27.288) (501) Cash dividends (S0.57 per share).. (39.836) Issuance of common stock under employee stock plans, net.. 1,059 19.136 Tax adjustment from stock plans...... . 5,119 Stock-based compensation expense... 11.120 Repurchase of common stock (421) (15.000) - BALANCE, DECEMBER 31, 2014 ........ 69,828 72.700 1.255.070 15.833 11.631 Net income - - 174,337 - 5,514 Other comprehensive loss: Unrealized holding losses on available-for- sale securities, net............ .. - 6 - Unrealized holding losses on derivative transactions, net ..... (2,908) - Foreign currency translation adjustment, net.. (33,755) (1.132) Cash dividends (S0.62 per share)......... (43,547) Issuance of common stock under employee stock plans, net 835 12.547 Tax adjustment from stock plans..... ...... - 7.925 Stock-based compensation expense............ - 11.672 Repurchase of common stock............ (1,386) (70,068) BALANCE, DECEMBER 31, 2015........ 69,277 34,776 1,385,860 (20,836) 16,013 Net income.... - 191.898 6,541 Other comprehensive income (loss): Unrealized holding losses on available-for- sale securities, net..... .... - (2) - Unrealized holding gains on derivative transitions, nel...HEEEEEE 686 157 Foreign currency translation adjustment, net.. (2.465) (2.020) Cash dividends (S0.69 per share).............. (48,122) Issuance of common stock under employee stock plans, net... 596 8.050 Stock-based compensation expense....... .. - 10.986 Repurchase of common stock..... ...... BALANCE, DECEMBER 31, 2016. ....... 69.873 $ 53.801 $1.529.636 $ (22.617) $ 20.691 11 (2.908) (34,887) (43,547) 12,547 7.925 11,672 (70,068) 1,415,813 198,439 843 (4.485) (48,122) 8.050 10,986 $ 1.581.511