2015 Q2 Form 10-Q Financial Statement

#000000497715000142 Filed on August 04, 2015

View on sec.gov

Income Statement

Concept 2015 Q2 2014 Q2
Revenue $5.287B $5.838B
YoY Change -9.44% -3.41%
Cost Of Revenue $2.937B $3.293B
YoY Change -10.81% -3.46%
Gross Profit $2.350B $2.545B
YoY Change -7.66% -3.34%
Gross Profit Margin 44.45% 43.59%
Selling, General & Admin $550.0M $537.0M
YoY Change 2.42% 1.51%
% of Gross Profit 23.4% 21.1%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $255.0M $276.0M
YoY Change -7.61% 9.96%
% of Gross Profit 10.85% 10.84%
Operating Expenses $550.0M $537.0M
YoY Change 2.42% 1.51%
Operating Profit $995.0M $1.157B
YoY Change -14.0% 0.0%
Interest Expense $74.00M $81.00M
YoY Change -8.64% 17.39%
% of Operating Profit 7.44% 7.0%
Other Income/Expense, Net -$225.0M -$11.00M
YoY Change 1945.45%
Pretax Income $874.0M $1.238B
YoY Change -29.4% -8.84%
Income Tax $301.0M $428.0M
% Of Pretax Income 34.44% 34.57%
Net Earnings $573.0M $810.0M
YoY Change -29.26% -8.89%
Net Earnings / Revenue 10.84% 13.87%
Basic Earnings Per Share $1.33 $1.79
Diluted Earnings Per Share $1.32 $1.78
COMMON SHARES
Basic Shares Outstanding 431.7M shares 452.6M shares
Diluted Shares Outstanding 434.3M shares 455.4M shares

Balance Sheet

Concept 2015 Q2 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $3.103B $2.252B
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment $422.0M $482.0M
YoY Change -12.45% -5.49%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $100.2B $112.5B
YoY Change -10.94% 10.77%
Other Assets
YoY Change
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $115.6B $127.9B
YoY Change -9.61% 9.94%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $5.720B $7.889B
YoY Change -27.49% 62.03%
LONG-TERM LIABILITIES
Long-Term Debt $5.425B $4.925B
YoY Change 10.15% -0.42%
Other Long-Term Liabilities $2.837B $2.075B
YoY Change 36.72% -4.64%
Total Long-Term Liabilities $8.262B $7.000B
YoY Change 18.03% -1.71%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.720B $7.889B
Total Long-Term Liabilities $8.262B $7.000B
Total Liabilities $98.56B $110.3B
YoY Change -10.65% 7.5%
SHAREHOLDERS EQUITY
Retained Earnings $23.05B $21.09B
YoY Change 9.31% 11.93%
Common Stock $1.839B $1.765B
YoY Change 4.19% 8.35%
Preferred Stock
YoY Change
Treasury Stock (at cost) $8.380B $6.902B
YoY Change 21.41% 16.31%
Treasury Stock Shares 238.4M shares 214.8M shares
Shareholders Equity $17.02B $17.56B
YoY Change
Total Liabilities & Shareholders Equity $115.6B $127.9B
YoY Change -9.61% 9.94%

Cashflow Statement

Concept 2015 Q2 2014 Q2
OPERATING ACTIVITIES
Net Income $573.0M $810.0M
YoY Change -29.26% -8.89%
Depreciation, Depletion And Amortization $255.0M $276.0M
YoY Change -7.61% 9.96%
Cash From Operating Activities $1.643B $1.517B
YoY Change 8.31% -18.7%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities -$1.488B -$1.471B
YoY Change 1.16% -46.02%
Cash From Investing Activities -$1.488B -$1.471B
YoY Change 1.16% -46.02%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.409B 233.0M
YoY Change -704.72% -65.84%
NET CHANGE
Cash From Operating Activities 1.643B 1.517B
Cash From Investing Activities -1.488B -1.471B
Cash From Financing Activities -1.409B 233.0M
Net Change In Cash -1.254B 279.0M
YoY Change -549.46% -257.63%
FREE CASH FLOW
Cash From Operating Activities $1.643B $1.517B
Capital Expenditures
Free Cash Flow
YoY Change

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us-gaap Cash And Cash Equivalents Period Increase Decrease
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us-gaap Common Stock Dividends Per Share Cash Paid
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us-gaap Common Stock Dividends Per Share Cash Paid
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CY2015Q2 us-gaap Common Stock Shares Authorized
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CY2015Q2 us-gaap Common Stock Shares Issued
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CY2014Q4 us-gaap Debt And Capital Lease Obligations
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us-gaap Deferred Policy Acquisition Cost Amortization Expense
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CY2014Q4 us-gaap Derivative Asset Fair Value Of Collateral
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624000000 USD
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CY2014Q4 us-gaap Derivative Liabilities
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CY2014Q4 us-gaap Derivative Net Liability Position Aggregate Fair Value
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us-gaap Direct Premiums Earned
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us-gaap Earnings Per Share Diluted
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us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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us-gaap Employee Service Share Based Compensation Cash Received From Exercise Of Stock Options
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us-gaap Employee Service Share Based Compensation Cash Received From Exercise Of Stock Options
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us-gaap Employee Service Share Based Compensation Tax Benefit Realized From Exercise Of Stock Options
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us-gaap Employee Service Share Based Compensation Tax Benefit Realized From Exercise Of Stock Options
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CY2015Q2 us-gaap Fair Value Assets Level1 To Level2 Transfers Amount
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CY2015Q2 us-gaap Fair Value Assets Level2 To Level1 Transfers Amount
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us-gaap Fair Value Assets Measured On Recurring Basis Change In Unrealized Gain Loss
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CY2014Q4 us-gaap Fair Value Concentration Of Risk Derivative Financial Instruments Assets
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Issues
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CY2015Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Issues
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Issues
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Purchases
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CY2015Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Purchases
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Purchases
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Sales
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CY2015Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Sales
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Sales
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Settlements
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Settlements
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Into Level3
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CY2015Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Into Level3
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Into Level3
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Out Of Level3
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CY2015Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Out Of Level3
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Out Of Level3
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CY2013Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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CY2014Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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CY2014Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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CY2015Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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CY2014Q2 us-gaap Gain Loss On Derivative Instruments Net Pretax
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us-gaap Gain Loss On Derivative Instruments Net Pretax
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CY2014Q2 us-gaap Gain Loss On Investments
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us-gaap Gain Loss On Investments
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us-gaap Gain Loss On Investments
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140000000 USD
CY2014Q2 us-gaap Gains Losses On Sales Of Assets
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us-gaap Gains Losses On Sales Of Assets
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us-gaap Gains Losses On Sales Of Assets
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CY2014Q4 us-gaap Held To Maturity Securities
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us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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CY2014Q2 us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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us-gaap Income Taxes Paid Net
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us-gaap Income Taxes Paid Net
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us-gaap Increase Decrease In Accrued Income Taxes Payable
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us-gaap Increase Decrease In Deferred Policy Acquisition Costs
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us-gaap Increase Decrease In Insurance Liabilities
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us-gaap Increase Decrease In Receivables
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us-gaap Increase Decrease In Receivables
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CY2014Q2 us-gaap Insurance Commissions
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us-gaap Insurance Commissions
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us-gaap Insurance Commissions
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CY2014Q2 us-gaap Interest Expense
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us-gaap Interest Expense
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us-gaap Interest Expense
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us-gaap Interest Paid
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us-gaap Interest Paid
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CY2014Q4 us-gaap Investments And Cash
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CY2014Q4 us-gaap Liabilities
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CY2015Q2 us-gaap Liabilities
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CY2014Q4 us-gaap Liabilities And Stockholders Equity
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CY2015Q2 us-gaap Liabilities And Stockholders Equity
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CY2014Q4 us-gaap Liabilities Fair Value Disclosure
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2423000000 USD
CY2015Q2 us-gaap Liabilities Fair Value Disclosure
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502000000 USD
CY2014Q4 us-gaap Liability For Future Policy Benefits
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CY2015Q2 us-gaap Liability For Future Policy Benefits
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CY2014Q4 us-gaap Liability For Unpaid Claims And Claims Adjustment Expense Net
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us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;text-decoration:underline;">Accounting Pronouncements Pending Adoption</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Financial Services - Insurance - Disclosures about Short-Duration Contracts:</font><font style="font-family:Arial;font-size:10pt;"> In May 2015, the FASB issued updated guidance requiring enhanced disclosures by all insurance entities that issue short-duration contracts. The amendments require insurance entities to disclose for annual reporting periods information about the liability for unpaid claims and claim adjustment expenses. The amendments also require insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses, including reasons for the change and the effects on the financial statements. In addition, the amendments require insurance entities to disclose for annual and interim reporting periods a roll-forward of the liability for unpaid claims and claim adjustment expenses. For health insurance claims, the amendments require the disclosure of the total of incurred-but-not-reported liabilities and expected development on reported claims included in the liability for unpaid claims and claim adjustment expenses. The amendments are effective for public business entities for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. Early application of the amendments is permitted. The adoption of this guidance will not have a significant impact on our financial position or results of operations, however we are evaluating whether the adoption of this guidance will have an impact on our disclosures.</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Fair Value Measurement - Disclosures for investments in certain entities that calculate net asset value per share (or its equivalent):</font><font style="font-family:Arial;font-size:10pt;"> In May 2015, the FASB issued updated guidance that removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendments are effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The amendments should be applied retrospectively to all periods presented whereby an investment for which fair value is measured using the net asset value per share practical expedient be removed from the fair value hierarchy in all periods presented in an entity&#8217;s financial statements. Earlier application is permitted. The adoption of this guidance will not have a significant impact on our financial position or results of operations.</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Interest - Imputation of Interest - Simplifying the presentation of debt issuance costs: </font><font style="font-family:Arial;font-size:10pt;">In April 2015, the FASB issued updated guidance to simplify presentation of debt issuance costs. The updated guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this amendment. The amendment is effective for annual periods and interim periods beginning after December 15, 2015. Early adoption is permitted. The adoption of this guidance will not have a significant impact on our financial position or results of operations.</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Consolidation - Amendments to the consolidation analysis:</font><font style="font-family:Arial;font-size:10pt;"> In February 2015, the FASB issued updated guidance that affects evaluation of whether limited partnerships and similar legal entities (limited liability corporations and securitization structures, etc.) are variable interest entities (VIEs), evaluation of whether fees paid to a decision maker or a service provider are a variable interest, and evaluation of the effect of fee arrangements and the effect of related parties on the determination of the primary beneficiary under the VIE model for consolidation. The updated guidance eliminates the presumption that a general partner should consolidate a limited partnership. Limited partnership and similar legal entities that provide partners with either substantive kick-out rights or substantive participating rights (representing the partners&#8217; controlling financial interest in the entity) over the general partner will now be evaluated under the voting interest model rather than the VIE model for consolidation. In regard to the fees paid to a decision maker or a service provider, the updated guidance eliminates three of the six criteria that an entity&#8217;s decision makers or service providers must meet for them to conclude that the fees do not represent a variable interest in that entity and, thus, should be excluded from the assessment for determining the primary beneficiary. Finally, in situations where no single party has a controlling financial interest in a VIE, the related party relationships under common control should be considered in their entirety in determining whether that common control group has a controlling financial interest in the VIE. However, if substantially all of the activities of the VIE are conducted on behalf of a single variable interest holder (excluding the decision maker) in a related party group that has the characteristics of a primary beneficiary, that single variable interest holder must consolidate the VIE as the primary beneficiary. The amendments in the updated guidance are effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017. Early application is permitted, including adoption in an interim period. We are evaluating whether the adoption of this guidance will have an impact on our financial position, results of operations or disclosures.</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Derivatives and Hedging - Determining whether the host contract in a hybrid financial instrument issued in the form of a share is more akin to debt or equity: </font><font style="font-family:Arial;font-size:10pt;">In November 2014, the FASB issued guidance to clarify how to evaluate the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. The guidance also clarifies that an entity should assess the substance of the relevant terms and features when considering how to weight those terms and features. The guidance is effective for annual periods and interim periods beginning after December 15, 2015. The adoption of this guidance will not have a significant impact on our financial position or results of operations.</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Presentation of Financial Statements - Going Concern - Disclosure of uncertainties about an entity&#8217;s ability to continue as a going concern: </font><font style="font-family:Arial;font-size:10pt;">In August 2014, the FASB issued this amendment that provides U.S. GAAP guidance on management&#8217;s responsibility in evaluating whether there is substantial doubt about a company&#8217;s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company&#8217;s ability to continue as a going concern within one year from the date the financial statements are issued. The amendment is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The adoption of this guidance will not have a significant impact on our financial position or results of operations.</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Compensation - Stock Compensation - Accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period: </font><font style="font-family:Arial;font-size:10pt;">In June 2014, the FASB issued this amendment that provides guidance on certain share-based payment awards that require a specific performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. The adoption of this guidance will not have a significant impact on our financial position or results of operations.</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Revenue from contracts with customers:</font><font style="font-family:Arial;font-size:10pt;"> In May 2014, the FASB issued updated guidance that affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The adoption of this guidance will not have a significant impact on our financial position or results of operations.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"></font></div></div>

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