2020 Q2 Form 10-Q Financial Statement

#000079634320000143 Filed on June 24, 2020

View on sec.gov

Income Statement

Concept 2020 Q2 2019 Q2 2019 Q1
Revenue $3.128B $2.744B $2.601B
YoY Change 13.99% 24.99% 25.11%
Cost Of Revenue $415.0M $407.0M $397.0M
YoY Change 1.97% 44.66% 53.34%
Gross Profit $2.713B $2.337B $2.204B
YoY Change 16.09% 22.1% 21.1%
Gross Profit Margin 86.73% 85.17% 84.74%
Selling, General & Admin $1.125B $1.068B $997.0M
YoY Change 5.34% 29.57% 32.69%
% of Gross Profit 41.47% 45.7% 45.24%
Research & Development $532.0M $476.0M $465.0M
YoY Change 11.76% 27.23% 33.33%
% of Gross Profit 19.61% 20.37% 21.1%
Depreciation & Amortization $188.0M $145.6M $186.0M
YoY Change 29.12% 90.58% 143.07%
% of Gross Profit 6.93% 6.23% 8.44%
Operating Expenses $1.697B $1.587B $1.509B
YoY Change 6.93% 30.56% 35.06%
Operating Profit $1.016B $750.0M $695.0M
YoY Change 35.47% 7.38% -1.1%
Interest Expense $28.00M $40.00M $41.00M
YoY Change -30.0% 96.43% 106.04%
% of Operating Profit 2.76% 5.33% 5.9%
Other Income/Expense, Net -$16.00M -$39.00M $7.000M
YoY Change -58.97% 407.48% -3130.3%
Pretax Income $1.000B $711.0M $702.0M
YoY Change 40.65% 2.92% -0.07%
Income Tax -$100.0M $78.00M $28.00M
% Of Pretax Income -10.0% 10.97% 3.99%
Net Earnings $1.100B $633.0M $674.0M
YoY Change 73.78% -4.55% 15.59%
Net Earnings / Revenue 35.17% 23.07% 25.91%
Basic Earnings Per Share $2.28 $1.30 $1.38
Diluted Earnings Per Share $2.27 $1.29 $1.36
COMMON SHARES
Basic Shares Outstanding 481.5M shares 487.5M shares 488.1M shares
Diluted Shares Outstanding 484.8M shares 492.2M shares 494.2M shares

Balance Sheet

Concept 2020 Q2 2019 Q2 2019 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.351B $3.479B $3.226B
YoY Change 25.06% -45.07% -47.53%
Cash & Equivalents $3.044B $2.083B $1.739B
Short-Term Investments $1.307B $1.396B $1.487B
Other Short-Term Assets $856.0M $550.0M $518.0M
YoY Change 55.64% 65.66% 91.85%
Inventory
Prepaid Expenses
Receivables $1.370B $1.270B $1.340B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $6.649B $5.343B $5.134B
YoY Change 24.45% -30.99% -31.37%
LONG-TERM ASSETS
Property, Plant & Equipment $1.387B $1.205B $1.104B
YoY Change 15.1% 21.29% 11.33%
Goodwill $10.70B $10.70B $10.71B
YoY Change 0.0% 83.73% 83.27%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $617.0M $503.2M $542.9M
YoY Change 22.61% 202.72% 253.36%
Total Long-Term Assets $14.95B $14.32B $14.37B
YoY Change 4.4% 92.98% 91.81%
TOTAL ASSETS
Total Short-Term Assets $6.649B $5.343B $5.134B
Total Long-Term Assets $14.95B $14.32B $14.37B
Total Assets $21.60B $19.67B $19.51B
YoY Change 9.85% 29.69% 30.27%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $289.0M $169.1M $145.3M
YoY Change 70.9% 44.29% 10.83%
Accrued Expenses $1.303B $1.315B $1.167B
YoY Change -0.91% 27.62% 28.14%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $3.146B $893.0M
YoY Change -100.0%
Total Short-Term Liabilities $5.164B $7.687B $5.314B
YoY Change -32.82% 106.15% 50.26%
LONG-TERM LIABILITIES
Long-Term Debt $4.114B $988.0M $3.237B
YoY Change 316.4% -47.28% 72.64%
Other Long-Term Liabilities $196.0M $165.0M $168.4M
YoY Change 18.76% 8.23% 12.84%
Total Long-Term Liabilities $196.0M $165.0M $168.4M
YoY Change 18.76% 8.23% 12.84%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.164B $7.687B $5.314B
Total Long-Term Liabilities $196.0M $165.0M $168.4M
Total Liabilities $10.72B $9.734B $9.634B
YoY Change 10.15% 50.74% 51.97%
SHAREHOLDERS EQUITY
Retained Earnings $16.43B $13.18B $12.58B
YoY Change 24.61% 25.91% 27.96%
Common Stock $0.00 $61.00K $61.00K
YoY Change -100.0% 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $12.24B $9.159B $8.415B
YoY Change 33.69% 31.02% 33.67%
Treasury Stock Shares
Shareholders Equity $10.88B $9.932B $9.871B
YoY Change
Total Liabilities & Shareholders Equity $21.60B $19.67B $19.51B
YoY Change 9.85% 29.69% 30.27%

Cashflow Statement

Concept 2020 Q2 2019 Q2 2019 Q1
OPERATING ACTIVITIES
Net Income $1.100B $633.0M $674.0M
YoY Change 73.78% -4.55% 15.59%
Depreciation, Depletion And Amortization $188.0M $145.6M $186.0M
YoY Change 29.12% 90.58% 143.07%
Cash From Operating Activities $1.184B $1.109B $1.013B
YoY Change 6.72% 13.62% 2.36%
INVESTING ACTIVITIES
Capital Expenditures -$96.00M -$145.5M $65.00M
YoY Change -34.02% 220.48% -31.68%
Acquisitions $100.0M
YoY Change
Other Investing Activities $176.0M $155.6M -$66.70M
YoY Change 13.11% 37.7% -4864.29%
Cash From Investing Activities $80.00M $10.10M -$132.0M
YoY Change 692.08% -85.08% 40.78%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $500.0M
YoY Change 66.67%
Debt Paid & Issued, Net $0.00
YoY Change
Cash From Financing Activities -901.0M -772.1M -$784.0M
YoY Change 16.69% 7.64% 44.84%
NET CHANGE
Cash From Operating Activities 1.184B 1.109B $1.013B
Cash From Investing Activities 80.00M 10.10M -$132.0M
Cash From Financing Activities -901.0M -772.1M -$784.0M
Net Change In Cash 363.0M 347.4M $97.00M
YoY Change 4.49% 6.3% -72.64%
FREE CASH FLOW
Cash From Operating Activities $1.184B $1.109B $1.013B
Capital Expenditures -$96.00M -$145.5M $65.00M
Free Cash Flow $1.280B $1.255B $948.0M
YoY Change 2.0% 22.81% 5.99%

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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Earnings Per Share Diluted
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us-gaap Earnings Per Share Diluted
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CY2019Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Net Income Loss
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us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
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CY2019Q2 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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CY2019Q2 us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Net Of Tax
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us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Net Of Tax
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us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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CY2020Q2 us-gaap Other Comprehensive Income Loss Net Of Tax
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CY2019Q2 us-gaap Other Comprehensive Income Loss Net Of Tax
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us-gaap Other Comprehensive Income Loss Net Of Tax
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us-gaap Other Comprehensive Income Loss Net Of Tax
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CY2019Q2 us-gaap Comprehensive Income Net Of Tax
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us-gaap Comprehensive Income Net Of Tax
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us-gaap Comprehensive Income Net Of Tax
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CY2020Q2 us-gaap Other Comprehensive Income Loss Net Of Tax
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us-gaap Net Income Loss
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CY2019Q2 us-gaap Stockholders Equity
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us-gaap Net Income Loss
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CY2019Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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us-gaap Income Taxes Paid Net
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us-gaap Reclassifications
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<div style="line-height:120%;padding-bottom:12px;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;">Reclassification</span></div><div style="line-height:120%;padding-bottom:12px;text-align:justify;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Certain immaterial prior year amounts have been reclassified to conform to current year presentation in the condensed consolidated statements of cash flows and notes to condensed consolidated financial statements.</span></div>
us-gaap Use Of Estimates
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<div style="line-height:120%;padding-bottom:12px;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates</span></div><div style="line-height:120%;padding-bottom:12px;text-align:justify;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">In preparing the condensed consolidated financial statements and related disclosures in conformity with GAAP and pursuant to the rules and regulations of the SEC, we must make estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, sales allowances and programs, bad debts, stock-based compensation, determining the fair value of acquired assets and assumed liabilities, impairment of goodwill and intangible assets, litigation and income taxes. Actual results may differ materially from these estimates.</span></div><div style="line-height:120%;padding-bottom:12px;text-align:justify;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">In March 2020, the World Health Organization declared the outbreak of a disease caused by a novel strain of the coronavirus (COVID-19) to be a pandemic. This pandemic has created and may continue to create significant uncertainty in the macroeconomic environment which, in addition to other unforeseen effects of this pandemic, may adversely impact our results of operations. As a result, most of our estimates and assumptions may require increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, our estimates may change materially in future periods.</span></div>
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CY2019Q2 us-gaap Revenues
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us-gaap Revenues
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us-gaap Revenues
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us-gaap Revenues
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SubscriptionandCirculationRevenue
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adbe Subscriptionand Circulation Revenue
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adbe Subscriptionand Circulation Revenue
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CY2019Q4 us-gaap Deferred Revenue
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us-gaap Contract With Customer Liability Revenue Recognized
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CY2020Q2 us-gaap Revenue Remaining Performance Obligation Percentage
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CY2020Q2 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or Longer Fair Value
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CY2019Q4 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value
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CY2019Q4 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or Longer Fair Value
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CY2020Q2 us-gaap Availableforsale Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Greater Than Or Equal To One Year
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CY2019Q4 us-gaap Availableforsale Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Greater Than Or Equal To One Year
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CY2020Q2 us-gaap Available For Sale Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Less Than One Year
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CY2020Q2 adbe Availableforsale Securities Debt Maturities Next Oneto Two Years Fair Value
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us-gaap Foreign Currency Transaction Gain Loss Before Tax
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