Professor: Hung-Yuan Lu
COLM and CRI MD&A section Comparison and Analysis
COLM is Symbol of Columbia Sportswear Company in New York Stock Exchange (NYSE). It is a United States company that manufactures and distributes outerwear and sportswear would-wide. It was founded in 1938 by Paul Lamfrom. The company is headquartered in Cedar Mill, Oregon, an unincorporated part of Washington County, Oregon, in the Portland metropolitan area near Beaverton. Columbia Sportswear also produces footwear, headgear, camping equipment, skiwear, and outerwear accessories.
CRI is Symbol of Carter's, Inc.in NYSE. They are the ...view middle of the document...
From the form it indicates both these two company emphasis Results of Operations section. Because it is the manager’s most important responsibility operate this company. This section can show the expectation of the manager want to the reader or the investor to know. So both of the two companies use more pages explains operating result in this issue.
Compared to Columbia, Carter's has two more items in the big framework: Effects of Inflation and Deflation, and Seasonality. In Columbia’s section they did not explain more about the inflation and deflation, but they have more about the currency exchange. In terms of the seasonality, Columbia explains this section in the business section. The same situation as Carter's, Columbia has big business season in third and fourth quarter.
In Columbia Results of Operations they highlight the net sale increase, net income attributable by different brand and the divided paid. Since Columbia is a worldwide company it’s net sale and net gross analysis based on the geography. Beside the geography Columbia also focuses on the brand analysis.it compared the difference between 2013, 2012 and 2011. It concludes the reason why it increase and what is the reason result in the decrease. It explained consist of the Selling, General and Administrative Expense (SG&A).it future explain the change of the interest tax and net income attributable to Columbia Sportswear Company. In its MD&A it did not explain the goodwill.
In Carter's Results of Operations section, it also indicated the sale and sale increase. But it separates it to wholesale and retail sales. It also separates the two brands OshKosh and Carter’s. Since the Carter is not a worldwide company like Columbia so it does not emphases the geography regional. They only use 200 words to explain the international business. Carter’s use almost one page to explain the SG&A section
| | | | | | | | | |
| Year Ended December 31, |
| 2013 | | 2012 | | % Change |
| (In millions, except for percentage changes) |
United States | $ | 971.3 | | | $ | 946.7 | | | 3% |
LAAP | 354.4 | | | 377.6 | | | (6)% |
EMEA | 240.7 | | | 230.6 | | | 4% |
Canada | 118.6 | | | 114.7 | | | 3% |
| $ | 1,685.0 | | | $ | 1,669.6 | | | 1% |
Based on the analysis the analyses of Columbia like to compare the geography regional and the previous year’s date. In term of Carter’s is more focus on the current years. It explains how this year’s happen
Conjecture on why those two companies choose to report different information (the tone, the amount, the level of detail, or the type) in their MD&As.
Net sales by geographic region are summarized in the following table:
This data is from the Columbia 10-K. MD&A section. It shows the manager analysis the difference by the region. First of all, the company has difference business geography regional, so it result the big difference about the analysis....