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Appendix B Specimen Financial Statements: Columbia Sportswear Company Columbia Sportswear Company ander in outlooraport me following are Columbia's financial statemento presented in its 2016 anal port. The compiute mal repert, including motos to the financial state, ble at the company's website COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Net sales Cost of sales Gross profit Selling general and administrative expenses Net Licensing income Income from operations Interest income, net Interest expense on note payable to related party (Note 22). Other non-operating expense Income before income tax Income tax expense (Note 10) Net income Net Income attributable to non-controlling interest Net income attributable to Columbia Sportswear Company Year Ended December 31, 2016 2015 3014 $ 2,377.045 5 2,326,180 S 2.100.590 1.266,697 1.252.680 1.145.639 1.110,348 1,073.500 954,951 864,084 831,971 763,063 10.244 8,192 6,956 256,508 249,721 198,844 2.000 1.531 1.004 (1.041) (1,099) (1.053) (572) (2.834) (274) 256,898 247.319 198,521 (58.459) (67468) (56,662 198,439 179851 141,859 6,541 5.514 4.686 $191,8985174.337137,173 2.75 $ 2.48 $ 2.45 1.97 1.94 Earnings per share attributable to Columbia Sportswear Company (Note 16): Basic.. Diluted Weighted average shares outstanding (Note 16); Basic Diluted 2.72 69,683 70.632 70.162 71,064 69,807 70,681 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME in thousands Year December 31 2016 2015 2014 198,439 $179.8515141.650 20 TO 843 (2.905) 7,751 Net income Other comprehensive low Unrealed holding incloses) on available for sale securities net of tax effects of 0.05), and (5) ropectively Unrealed gains contesto derivative transactions x effects of ($1.922, (549) and (51.SOTA.cpectively) Forclun currency trustion adjustment of an effe (5760) and S1,02respectively Other comprehensive Comprehensive income Comprehensive income attributable to non-controlling interest Comprehensive income attributable to Columbia Sportswear Company (4.485) (34.887) (27.789) 3.644) (37.00 20.028) 194,795 142,050 121.31 4.678 4182 4.185 5190,117 $137.668 S 117.646 Se companying not to consolidated financial statement COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED BALANCE SHES CONSOLIDATED BALANCE SHEETS (In thousands) December 31, 2016 2015 $ 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 51.846,153 ASSETS 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, not (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) Retained camnings 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 53,801 1.529.636 34,776 1.385,860 Accumulated other comprehensive loss (Note 17) (22.617) (20.836 Total Columbia Sportswear Company shareholders' equity 1,560,820 1.399,800 Non-controlling interest (Note 4) 20,691 16,013 Total equity 1,581,511 1,415,813 Total liabilities and equity $ 2,013,894 $ 1.846,153 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2016 2015 2014 Cash flows from operating activities: Net income. 198,439 $ 179.851 $ 141.859 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 60,016 56,521 54,017 Loss on disposal or impairment of property, plant, and equipment.... 4,805 5,098 481 Deferred income taxes (19,178) (11.709) (6,978) Stock-based compensation 10,986 11.672 11.120 Excess tax benefit from employee stock plans. (7.873) (4,927) Changes in operating assets and liabilities: Accounts receivable ....... 36,710 (40,419) (31,478) Inventories (18.777) (103,296) (62,086) Prepaid expenses and other current assets (5.452) 4,411 (4.869) Other assets. (5.948) (2.524) 4,291 Accounts payable 1.483 11,418 41.941 Accrued liabilities 4.847 (2017) 35,051 Income taxes payable 4,768 (10,994) 1.166 Other liabilities 2.468 4.966 6,195 275,167 95,105 185,783 (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) 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. Net 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 53.429 (51,479) 17,442 (4,895) 7,873 (70,068) (43,547) (11) (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) (91.245) (1.635) (4.647) 181.619 (43,788) 369.770 413,558 551,389 $ 369,770 $ 70.4245 1,049 87,350 $ 1.115 53,958 838 2,710 4,698 7.196 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY 4,686 11 CONSOLIDATED STATEMENTS OF EQUITY (In thousands) Columbia Sportswear Company Shareholders' Equity Common Stock Accumulated Other Non- Shares Retained Comprehensive Controlling Outstanding Amount Earnings Income (Loss) Interest Total BALANCE, JANUARY 1, 2014 69,190 $ 52,325 $1,157,733 $ 35,360 $ 7.446 $ 1,252,864 Net income... 137.173 141,859 Other comprehensive income (loss) Unrealized holding gains on available-for-sale securities, net 10 10 Unrealized holding gains on derivative transactions, net 7.751 7.751 Foreign currency translation adjustment, net. (27.288) (501) (27.789) Cash dividends (80.57 per share) (39,836) (39,836) Issuance of common stock under employee stock plans, net 1,059 19.136 19.136 Tax adjustment from stock plans 5,119 Stock-based compensation expense 11,120 11.120 Repurchase of common stock (421) (15,000) (15.000) BALANCE, DECEMBER 31, 2014 69,828 72,700 1.255,070 15.833 11.631 1.355,234 Net income... 174,337 5,514 179,851 Other comprehensive loss: Unrealized holding losses on available for sale securities, net. (6) Unrealized holding losses on derivative transactions, net (2.908) (2.908) Foreign currency translation adjustment, nct. (33,755) (1.132) (34.887) Cash dividends (50.62 per share) (43,547) (43.547) Issuance of common stock under employee stock plans.net 12,547 12.547 Tax adjustment from stock plans 7,925 7.925 5,119 835 (1.386) 69,277 11,672 (70,068) 34,776 (20,836) 11.072 (70,068) 1,415.813 198,439 1.385,860 191,898 16,013 6541 - - (2) (2) Stock-based compensation expense. Repurchase of common stock... BALANCE, DECEMBER 31, 2015 Net income Other comprehensive income (los) Unrealized holding losses on available-for- sale securities, net. Unrealized holding gains on derivative transactions, not Foreign currency translation adjustment, net Cash dividends ($0,69 per share) Isuunnce of common stock under employee stock plans, et Stock-based compensation expense Repurchase of common stock BALANCE, DECEMBER 31, 2016 157 IET 686 (2.465) (2.020) 843 (4.485) (18.122) (48.122) 596 8,050 10.986 8.050 10.986 (11) $ 1.581.311 69,873 $ 53.801 $1.529,636 S (22,617) $20.691 See accompanying notes to consolidated financial statements Appendix C Specimen Financial Statements: VF Corporation VT Corporation sheries contine portant. The following are financial statemente a presented in its 2016 annual report. The complete annual report, including notes to the financial statements, VY CORPORATION Case Sheets ASSETS 165 Accounts per les esce for del 21.11.2016 SA 2015 1.56323 135.0 214215 W.17 Team Property, please 939.400 Batanes Good 76 Oth Other of discsperti Title 50.73975 LIABILITIES AND STOCKHOLDERS' EQUITY 945491 611 07 SER 210.000 Cum profectum 6646 841,038 1.785,400 2,039,180 973.786 782,148 26,018 1.941,713 1.402.820 900, 256 10915 4,798,366 4.254,704 Accrued liabilities Current liabilities of discontinued operations Total current liabilities Long-term debt Other liabilities Other liabilities of discontinued operations Commitments and contingencies Total liabilities Stockholders' equity Preferred Stock, par value $1; shares authorized, 25,000,000; no shares outstanding in 2016 and 2015 Common Stock, itatod Value 50.25: shares authorized, 1.200,000,000; 414,012.954 shares outstanding in 2016 and 426,614,294 shares outstanding in 2015 Additional paid.in capital Accumulated other comprehensive loss Retnined carnings Total stockholders' equity Total liabilities and stockholders' equity 103,503 3,333,423 (1.041.463) 2.545.458 4.940,921 9,739.287 S 106,654 3,192,673 (1.043.222) 3.128.731 5.384,838 9,639,542 S See notes to consolidated financial statements. VF CORPORATION Consolidated Statements of Income 2014 S 3016 2015 In the prehram 11.902.314 11.909,615 116.689 12000 12.019.000 12.012,655 11.757.399 124331 11.881.730 Nel sales Royalty Income Total revenues Costs and operating expenses Cost of goods sold Selling peneral and administrative expenses Time of goodwill and intangibles Total cost and operating ApS Operating income Interest income Interestepe 4.009.029 6,112.50 3.920536 6,196335 4.243.798 79.614 10.519.777 1.499.226 1,004 2100 10.244.228 1.787927 7.152 10.093.416 1.79834 BANOS 2,001 1,415,591 243,064 1,172,527 (98,421) 1.074,1065 1,028 1,707,335 392,204 1.315.131 (83.538) 1.231,593 S (5.545) 1,713,576 385,827 1,327,749 (280,244) 1.047.505 Other income (expense), net Income from continuing operations before income taxes Income taxes Income from continuing operations Loss from discontinued operations, net of tax Net Income Earnings per common share - basic Continuing operations Discontinued operations Total earnings per common share - basic Earnings per common share-diluted Continuing operations Discontinued operations Total earnings per common share-diluted Cash dividends per common share 2.82 $ (0.24) 2.58S 3.09 $ (0.19) 2.90 $ 3.07 (0.65) 2.42 2.78$ (0.24) 2.54 $ 1.5300 5 3.04 $ (0.19) 2.85 5 1.3300 $ 3.02 (0.64) 2.38 1. $ See notes to consolidated financial statements. VF CORPORATION Consolidated Statements of Comprehensive Income 2014 Year Ended December 2016 2015 In thousands 1,074,106 $ 1.231.593 $ 1.047.505 (52.028 (24.382) (361.814) 586 6,075 Net income Other comprehensive income (loss) Foreign currency translation and other Goins (losses) arising during year Less income tax effect Defined benefit pension plans Current yeur tuarial gains (losses) and plan amendments Amortization of net deferred actuarial losses Amontiration of deferred prior service costs Reclassification of net actuarial loss from settlement change Less income tax effect Derivative financial instruments Gains (losses arising during year Less income tax effect (62.556) 61.966 (5.384) 65.212 2.584 50.922 (43.836) (203.234) 37.518 5445 3038 4,062 (1.571) 60.588 90.708 (9.6723 89.993 (14.665) 88.387 34.736) Lion.Wucy.com HACCOMODO AUD/71119 Woh (107.457) 35,092 (64.976) 25,404 32,111 (12.619 Recantation to net income for Craina) losses realized Les income tax effect Marketable securities Gains (losses) arising during you Less income tax effect Reclassification to net income for (int) losses malined Less income tax effect Other comprehensive income loss) Comprehensive Income (698) 274 495 (195) (1,177) 463 (340.950) 890,6433 1,759 1.075,863 (490,552) 556,953 See notes to consolidated financial statements VF CORPORATION Consolidated Statements of Cash Flows Year Ended December 2016 2015 2014 In thousands 1.074.106 $ 1.231,593 $ 1.047,505 Operating activities Net income Adjustments to reconcile net income to cash provided by operating activities: Impairment of goodwill and intangible assets Depreciation and amortization Stock-based compensation Provision for doubtful accounts Pension expense in excess of (less than) contributions Deferred income taxes Loss on sale of businesses Othernet Changes in operating assets and liabilities: Accounts receivable Inventories 79,644 281,577 67.762 17,283 89,005 (71.625) 104,357 (15,232) 143,562 272,075 73.420 12,006 (208,709) 7088 396,362 274,883 104,313 (2,198) (9,864) (78,064) (34.784) 4,112 47.102 (37,210) (124,248) (175.098) 854 C130.5.10) Accounts payable (9,553) 14.225 69,807 Income taxes (129,574) 4.206 20,293 Accrued liabilities 28.904 (14,505) 41.989 Other assets and liabilities (48,627) 2,599 22,614 Cash provided by operating activities 1.477,919 1,203,430 1.762,066 Investing activities Capital expenditures (175,840) (254,501) (234,077) Proceeds from sale of businesses, net of cash sold 115,983 Software purchases (44.226) (63,283) (67.943) Other, net (8,331) (5,038) (27.235) Cash used by investing activities (112,414) (322,822) (329.255) Financing activities Net (decrease) increase in short-term borrowings (421,069) 432,262 4,761 Payments on long-term debt (13.276) (3,975) (4,760) Payment of debt issuance costs (6,807) (1,475) Proceeds from long-term debt 951.817 Purchases of treasury stock (1.000,468) (732,623) (727,795) Cash dividends paid (635,994) (565,275) (478,933) Proceeds from issuance of Common Stock, net of shares withheld for taxes 48,918 30,871 34,869 Cash used by financing activities (1.076,879) (840,215) (1.171,858) Effect of foreign currency rate changes on cash and equivalents (6,369) (66,683) (65,461) Net change in cash and equivalents 282,257 (26,290) 195,492 Cash and equivalents - beginning of year 945,605 971.895 776,403 Cash and equivalents -- end of year $ 1.227.8625 945,605 $ 971.895 The cash flows related to discontinued operations have not been segregated and are included in the Consolidated Statements of Cash Flows. The cash and equivalents amount presented at December 2015 differs from cash and equivalents in the Consolidated Balance Sheet due to cash included in Current assets or discontinued operations." VE CORPORATION Consolidated Statements of Stockholders' Equity Balance, December 2013 Net income Dividends on Common Stock Purchase of treasury stock Stock-based compensation, net Foreign currency translation and other Defined benefit pension plans Derivative financial instruments Marketable securities Balance, December 2014 Net income Dividends on Common Stock Purchase of treasury stock Stock-based compensation, net Foreign currency translation and other Defined benefit pension plans Derivative financial instruments Marketable securities Balance, December 2015 Accumulated Common Stock Additional Other Paid-in Comprehensive Retained Shares Amounts Capital Loss Earnings In thousands, except share amounts 440,310,370 $ 110,078 $ 2,746,590 $ (211.720) $ 3,432,090 1,047,505 (478,933) (12,037,000) (3,009) (724,786) 4,586,521 1.146 246,596 (44,123) (463,588) (99,683) 73.143 (424) 432.859,891 108,215 2,993,186 (702,272) 3,231,753 1.231.593 (565,275) (10,036,100) (2,509) (730,114) 3.790,483 948 199,489 (39.226) (361,228) 4,939 15,753 (414) 426,614.274 106,654 3.192.675 (1.043.222) 3.128.731 Net income Dividends on Common Stock Purchase of treasury stock Stock-based compensation, net Foreign currency translation and other Defined benefit pension plans Derivative financial instruments Balance, December 2016 (15,932,075) 3.330,755 (3,983) 832 1,074,106 (635,994) (996,485) (24,900) 140,748 (76,410) 69.498 8,671 3,333,423 $ (1.041.463) S 414,012.954 $ 103,503 $ 2.545,458 See notes to consolidated financial statements The financial statements of Columbia Sportswear Company 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. Based on the information contained in these financial statements, determine the following values for each company (Round all percentages es to 1 decimal place, es. 17.5%) (1) Profit margin for 2016. (For VF, use "Net Sales.) Profit margin Columbia Sportswear Company VF Corporation * (2) Gross profit for 2016. (Enter amounts in thousands) Gross profit (000's) Columbia Sportswear Company VF Corporation (3) Gross profit rate for 2016, Gross profit rate % Columbia Sportswear Company VF Corporation % (4) Operating income for 2016. (Enter amounts in thousands) Operating income (000's) $ Columbia Sportswear Company VF Corporation (5) Percentage change in operating Income from 2015 to 2016. (For Columbia, use Income from operations.) (Show decrease with either a negative sign.es -15.2% or in parentheses, es. (15.2)%) Percent change in operating income Columbia Sportswear Company VF Corporation

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