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The table below reconciles these metrics to net income as presented in the consolidated statement of income. Years Ended December 31 ($ in thousands) 2016 2015 2014 Net Income $ 121,274 $ 113,655 $ 112,629 Add back: Provision for income taxes 49,726 58,811 58,764 Deduct: Other Income (expense) - net * (664 ) (1,373 ) 677 Interest, net 2,488 2,191 3,074 Adjusted EBIT 169,176 171,648 167,642 Add back: Depreciation and amortization 19,868 19,379 14,519 Loss on disposal of fixed assets 652 1,780 291 Adjusted EBITDA 189,696 192,807 182,452 Executive Summary Net sales for 2016 slightly decreased by 0.4% to $1,399,551 from $1,405,239 in 2015. The net sales decrease is due to a decline in both the Wholesale Footwear segment and the Wholesale Accessories segment partially offset by an increase in our Retail segment. Net income increased 7.1% to $120,911 in 2016 compared to $112,938 in 2015. The Company's effective tax rate for 2016 decreased to 29.1% compared to 34.1% recorded in 2015 due primarily to the tax benefit received in connection with the early adoption of Accounting Standard Update No. Diluted earnings per share in 2016 increased to $2.03 per share on 59,556,000 diluted weighted average shares outstanding compared to $1.85 per share on ชุด นอน หน้า หนาว 61,142,000 diluted weighted average shares outstanding in the prior year. In our Retail segment, same store sales (sales attributable to those stores, including the e-commerce websites, that were in operation throughout 2016 and 2015) increased 4%, and sales per square foot increased to $752 in 2016 compared to sales per square foot of $723 in 2015. As of December 31, 2016, we had 189 stores in operation, compared to 169 stores as of December 31, 2015. Our store increase was primarily related to the addition of nine full price stores and twelve outlet store locations partially offset by one full price store closing. Our total inventory turnover was 8.2 times compared to 8.7 times in the comparable period of last year. Our accounts receivable average collection days were 66 days in 2016 compared to 67 days in 2015.

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China "A foundational civil (law) system is an important sign of whether a country's legal system is mature." Xi has made governing the nation by law a top priority of his tenure though he has drawn a line at allowing the courts to expand their power at the expense of the Communist Party's control. Since pledging to reform and open in 1978, China has been gradually shifting its legal system away from a socialist law towards something closer to a European-style legal system. In 2011, China declared that "socialist legal system with Chinese characteristics" had been established, but officials themselves say China's laws remains a work in progress. SAMARITANS, PROPERTY RIGHTS The preamble, which was released in draft form to the public in June last year, seeks to address some of the legal issues that have gnawed at public consciousness in recent years, such as who is responsible for China's abandoned children and elderly, or what protections cover so-called "Good Samaritans". China's incomplete legal system was heavily criticized for an incident in 2011 when multiple passersby ignored a toddler knocked to the ground in a hit-and-run. Shocked observers said the lack of clarity on civil rights leaves helpers at risk of liability when coming to the aid of strangers. Reformers also hope the code will resolve the issue of guardianship for "left behind" children whose parents work away from home and "empty nest" elderly folk who are similarly abandoned by their children. One issue that lawyers say remains mostly unresolved in the draft code is that of property rights. Most Chinese homeowners do not legally own the land on which their homes are built. Instead, they lease the rights to use the property for a limited number of years from the government, an arrangement that creates uncertainty for buyers.