Textbook Problem

Getting Familiar with the Format of the 1 0-K

Look up Columbia’s 10-K for 2016 (tiled February 23, 2017). It can be found online (which allows you to search and reference the entire 10-K) by searching for “Columbia Sportswear investor relations.” Once at that site click on Financial Information” then “SEC Filings.” move the “View” pull down menu to “Annual Filings,” and click the “Search” button.

Required:

Answer the following questions and include in which item number of the 10-K the information was found:

1. Where arc Columbia’s Apparel items manufactured?

2. Name Columbia’s four primary brands.

3. Describe the seasonality of Columbia’s business. Specifically, in which half of the year did Columbia experience the highest proportion of its 2016 net sales and net income?

4. Is Columbia involved in any litigation that may materially affect its financial position?

5. Net sales in the United States increased by 3% in 2016. What line of business is responsible for this increase in sales?

6. What method of depreciation does Columbia use? What is the range of useful lives for machinery and equipment’?

7. Who audits Columbia?