2018 Q3 Form 10-Q Financial Statement

#000119312518309015 Filed on October 26, 2018

View on sec.gov

Income Statement

Concept 2018 Q3 2017 Q3
Revenue $1.779B $1.594B
YoY Change 11.6% 7.52%
Cost Of Revenue $1.312B $1.166B
YoY Change 12.53% 8.31%
Gross Profit $466.7M $428.0M
YoY Change 9.04% 5.42%
Gross Profit Margin 26.24% 26.86%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $33.40M $30.50M
YoY Change 9.51% 18.68%
% of Gross Profit 7.16% 7.13%
Operating Expenses $227.7M $209.0M
YoY Change 8.95% 10.23%
Operating Profit $239.0M $219.0M
YoY Change 9.13% 1.2%
Interest Expense $36.70M $31.40M
YoY Change 16.88% 10.18%
% of Operating Profit 15.36% 14.34%
Other Income/Expense, Net
YoY Change
Pretax Income $90.30M $76.90M
YoY Change 17.43% -18.97%
Income Tax -$48.10M -$41.20M
% Of Pretax Income -53.27% -53.58%
Net Earnings $127.6M $111.0M
YoY Change 14.95% -9.61%
Net Earnings / Revenue 7.17% 6.96%
Basic Earnings Per Share $0.70 $0.61
Diluted Earnings Per Share $0.68 $0.61
COMMON SHARES
Basic Shares Outstanding 183.3M shares 180.5M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2018 Q3 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $605.0M $565.0M
YoY Change 7.08% 6.2%
Cash & Equivalents $605.0M $564.9M
Short-Term Investments
Other Short-Term Assets $951.5M $679.6M
YoY Change 40.01% 13.06%
Inventory
Prepaid Expenses $99.90M $89.00M
Receivables
Other Receivables
Total Short-Term Assets $8.084B $5.087B
YoY Change 58.9% 20.73%
LONG-TERM ASSETS
Property, Plant & Equipment $429.3M $413.4M
YoY Change 3.85% 93.27%
Goodwill $4.501B $4.160B
YoY Change 8.19% 10.57%
Intangibles $1.772B $1.671B
YoY Change 6.04% 2.53%
Long-Term Investments
YoY Change
Other Assets $584.6M $559.6M
YoY Change 4.47% -11.23%
Total Long-Term Assets $8.031B $7.723B
YoY Change 3.98% 10.54%
TOTAL ASSETS
Total Short-Term Assets $8.084B $5.087B
Total Long-Term Assets $8.031B $7.723B
Total Assets $16.11B $12.81B
YoY Change 25.79% 14.38%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.694B $3.509B
YoY Change 62.27% 22.39%
Accrued Expenses $938.0M $768.0M
YoY Change 22.14% 17.97%
Deferred Revenue
YoY Change
Short-Term Debt $230.0M $125.0M
YoY Change 84.0% -79.44%
Long-Term Debt Due $230.0M $125.0M
YoY Change 84.0% -79.44%
Total Short-Term Liabilities $7.423B $4.705B
YoY Change 57.75% 6.96%
LONG-TERM LIABILITIES
Long-Term Debt $3.141B $2.742B
YoY Change 14.57% 34.09%
Other Long-Term Liabilities $862.1M $1.191B
YoY Change -27.63% 17.3%
Total Long-Term Liabilities $4.003B $3.933B
YoY Change 1.79% 28.52%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.423B $4.705B
Total Long-Term Liabilities $4.003B $3.933B
Total Liabilities $11.50B $8.638B
YoY Change 33.15% 15.81%
SHAREHOLDERS EQUITY
Retained Earnings $1.518B $1.062B
YoY Change 42.89% 19.36%
Common Stock $3.700B $3.547B
YoY Change 4.33% 3.79%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $4.545B $4.110B
YoY Change
Total Liabilities & Shareholders Equity $16.11B $12.81B
YoY Change 25.79% 14.38%

Cashflow Statement

Concept 2018 Q3 2017 Q3
OPERATING ACTIVITIES
Net Income $127.6M $111.0M
YoY Change 14.95% -9.61%
Depreciation, Depletion And Amortization $33.40M $30.50M
YoY Change 9.51% 18.68%
Cash From Operating Activities $191.3M $332.3M
YoY Change -42.43% 38.75%
INVESTING ACTIVITIES
Capital Expenditures -$28.10M -$28.20M
YoY Change -0.35% -21.01%
Acquisitions
YoY Change
Other Investing Activities -$180.0M -$90.60M
YoY Change 98.68% 62.37%
Cash From Investing Activities -$208.1M -$118.8M
YoY Change 75.17% 29.84%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -44.80M -165.6M
YoY Change -72.95% 549.41%
NET CHANGE
Cash From Operating Activities 191.3M 332.3M
Cash From Investing Activities -208.1M -118.8M
Cash From Financing Activities -44.80M -165.6M
Net Change In Cash -61.60M 47.90M
YoY Change -228.6% -60.9%
FREE CASH FLOW
Cash From Operating Activities $191.3M $332.3M
Capital Expenditures -$28.10M -$28.20M
Free Cash Flow $219.4M $360.5M
YoY Change -39.14% 31.0%

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BusinessCombinationAggregateEarnoutObligationMaximum
495700000
ajg Net Proceeds From Sales Of Operations
NetProceedsFromSalesOfOperations
12600000
ajg Amount Of Commitment Expiration Off Balance Sheet Commitments Within Year Thereafter
AmountOfCommitmentExpirationOffBalanceSheetCommitmentsWithinYearThereafter
18600000
ajg Amount Of Commitment Expiration Off Balance Sheet Commitments Within Year One
AmountOfCommitmentExpirationOffBalanceSheetCommitmentsWithinYearOne
ajg Cost Reimbursements
CostReimbursements
107500000
ajg Business Combination Aggregate Earnout Obligation Recorded Maximum
BusinessCombinationAggregateEarnoutObligationRecordedMaximum
219600000
ajg Amount Of Commitment Expiration Off Balance Sheet Commitments Within Year Four
AmountOfCommitmentExpirationOffBalanceSheetCommitmentsWithinYearFour
200000
ajg Amount Of Commitment Expiration Off Balance Sheet Commitments Within Year Five
AmountOfCommitmentExpirationOffBalanceSheetCommitmentsWithinYearFive
200000
ajg Recorded Earn Out Payable
RecordedEarnOutPayable
52800000
ajg Net Change In Accrued Compensation And Other Current Liabilities
NetChangeInAccruedCompensationAndOtherCurrentLiabilities
56100000
ajg Weighted Average Number Of Common And Common Equivalent Shares Outstanding
WeightedAverageNumberOfCommonAndCommonEquivalentSharesOutstanding
185700000 shares
ajg Deferred Equity Participation Plan Distributions To Key Executives Age
DeferredEquityParticipationPlanDistributionsToKeyExecutivesAge
Age 62 (or the one-year anniversary of the date of the grant for participants over the age of 61 as of the grant date) or upon or after their actual retirement.
ajg Deferred Equity Participation Sub Plan Distributions Requisite Service Description
DeferredEquityParticipationSubPlanDistributionsRequisiteServiceDescription
We annually make awards under sub-plans of the DEPP for certain production staff, which generally provide for vesting and/or distributions no sooner than five years from the date of awards, although certain awards vest and/or distribute after the earlier of fifteen years or the participant reaching age 65.
ajg Deferred Equity Participation Sub Plan Distributions To Key Executives Age
DeferredEquityParticipationSubPlanDistributionsToKeyExecutivesAge
Age 65
ajg Description Of Contracts Renewal Period
DescriptionOfContractsRenewalPeriod
One year or less.
ajg Operating Lease Commitment Expiration Date
OperatingLeaseCommitmentExpirationDate
2018-02-28
ajg Number Of Employees
NumberOfEmployees
2000 Employees
ajg Collateralized Delinquency Receivables Period
CollateralizedDelinquencyReceivablesPeriod
P7D
ajg Weighted Average Period
WeightedAveragePeriod
P4Y
ajg Acquired Property Through Lease Percentage
AcquiredPropertyThroughLeasePercentage
0.60 pure
ajg Percentage Of Commissions And Fee Revenues Recongized On Effective Date Of Insurance Contract
PercentageOfCommissionsAndFeeRevenuesRecongizedOnEffectiveDateOfInsuranceContract
0.70 pure
ajg Percentage Of Commissions And Fee Revenues Recongized In First Three Months Of Insurance Contract
PercentageOfCommissionsAndFeeRevenuesRecongizedInFirstThreeMonthsOfInsuranceContract
0.20 pure
ajg Percentage Of Commissions And Fee Revenues Recongized After First Three Months Of Insurance Contract
PercentageOfCommissionsAndFeeRevenuesRecongizedAfterFirstThreeMonthsOfInsuranceContract
0.10 pure
ajg Acquired Property Through Lease Area
AcquiredPropertyThroughLeaseArea
306000 sqft
ajg Increase Decrease In Premiums And Fee Receivable
IncreaseDecreaseInPremiumsAndFeeReceivable
782300000
ajg Revenue From Contract With Customer Before Reimbursements Excluding Assessed Tax
RevenueFromContractWithCustomerBeforeReimbursementsExcludingAssessedTax
5169100000
CY2017 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.350 pure
us-gaap Number Of Businesses Acquired
NumberOfBusinessesAcquired
488 Entity
CY2017Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
1700000 shares
CY2017Q3 us-gaap Adjustment For Amortization
AdjustmentForAmortization
69600000
CY2017Q3 us-gaap Business Acquisition Pro Forma Earnings Per Share Basic
BusinessAcquisitionProFormaEarningsPerShareBasic
0.62
CY2017Q3 us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
1650200000
CY2017Q3 us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
5700000
CY2017Q3 us-gaap Business Combination Separately Recognized Transactions Additional Disclosures Acquisition Cost Expensed
BusinessCombinationSeparatelyRecognizedTransactionsAdditionalDisclosuresAcquisitionCostExpensed
4900000
CY2017Q3 us-gaap Business Acquisition Pro Forma Earnings Per Share Diluted
BusinessAcquisitionProFormaEarningsPerShareDiluted
0.62
CY2017Q3 us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest
5500000
CY2017Q3 us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
0.39
CY2017Q3 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
273600000
CY2017Q3 us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest
279100000
CY2017Q3 us-gaap Costs And Expenses
CostsAndExpenses
1516800000
CY2017Q3 us-gaap Depreciation
Depreciation
30500000
CY2017Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.61
CY2017Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.61
CY2017Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
76900000
CY2017Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-41200000
CY2017Q3 us-gaap Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
4500000
CY2017Q3 us-gaap Interest Expense
InterestExpense
31400000
CY2017Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
2000000 shares
CY2017Q3 us-gaap Labor And Related Expense
LaborAndRelatedExpense
680500000
CY2017Q3 us-gaap Number Of Businesses Acquired
NumberOfBusinessesAcquired
31 Entity
CY2017Q3 us-gaap Net Income Loss
NetIncomeLoss
111000000
CY2017Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
7100000
CY2017Q3 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTax
-1100000
CY2017Q3 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
2900000
CY2017Q3 us-gaap Operating Expenses
OperatingExpenses
209000000
CY2017Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
157000000
CY2017Q3 us-gaap Profit Loss
ProfitLoss
118100000
CY2017Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1593700000
CY2017Q3 us-gaap Stock Granted During Period Value Sharebased Compensation
StockGrantedDuringPeriodValueSharebasedCompensation
4400000
CY2017Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
180500000 shares
CY2017Q3 ajg Change In Estimated Acquisition Earnout Payables
ChangeInEstimatedAcquisitionEarnoutPayables
10600000
CY2017Q3 ajg Business Acquisitions Pro Forma Net Income Loss To Controlling Interest
BusinessAcquisitionsProFormaNetIncomeLossToControllingInterest
113000000
CY2017Q3 ajg Cost Reimbursements
CostReimbursements
33800000
CY2017Q3 ajg Weighted Average Number Of Common And Common Equivalent Shares Outstanding
WeightedAverageNumberOfCommonAndCommonEquivalentSharesOutstanding
182500000 shares
CY2017Q3 ajg Revenue From Contract With Customer Before Reimbursements Excluding Assessed Tax
RevenueFromContractWithCustomerBeforeReimbursementsExcludingAssessedTax
1559900000
CY2018Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
1300000 shares
CY2018Q3 us-gaap Adjustment For Amortization
AdjustmentForAmortization
72800000
CY2018Q3 us-gaap Business Acquisition Pro Forma Earnings Per Share Basic
BusinessAcquisitionProFormaEarningsPerShareBasic
0.70
CY2018Q3 us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
1780300000
CY2018Q3 us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
1300000
CY2018Q3 us-gaap Business Combination Separately Recognized Transactions Additional Disclosures Acquisition Cost Expensed
BusinessCombinationSeparatelyRecognizedTransactionsAdditionalDisclosuresAcquisitionCostExpensed
4500000
CY2018Q3 us-gaap Business Acquisition Pro Forma Earnings Per Share Diluted
BusinessAcquisitionProFormaEarningsPerShareDiluted
0.68
CY2018Q3 us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest
11100000
CY2018Q3 us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
0.41
CY2018Q3 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
105300000
CY2018Q3 us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest
116400000
CY2018Q3 us-gaap Costs And Expenses
CostsAndExpenses
1688200000
CY2018Q3 us-gaap Depreciation
Depreciation
33400000
CY2018Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.68
CY2018Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.70
CY2018Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
90300000
CY2018Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-48100000
CY2018Q3 us-gaap Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
1100000
CY2018Q3 us-gaap Interest Expense
InterestExpense
36700000
CY2018Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
3500000 shares
CY2018Q3 us-gaap Labor And Related Expense
LaborAndRelatedExpense
765700000
CY2018Q3 us-gaap Number Of Businesses Acquired
NumberOfBusinessesAcquired
38 Entity
CY2018Q3 us-gaap Net Income Loss
NetIncomeLoss
127600000
CY2018Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
10800000
CY2018Q3 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTax
-700000
CY2018Q3 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
2500000
CY2018Q3 us-gaap Operating Expenses
OperatingExpenses
227700000
CY2018Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
-25200000
CY2018Q3 us-gaap Profit Loss
ProfitLoss
138400000
CY2018Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1778500000
CY2018Q3 us-gaap Stock Granted During Period Value Sharebased Compensation
StockGrantedDuringPeriodValueSharebasedCompensation
3700000
CY2018Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
183300000 shares
CY2018Q3 ajg Change In Estimated Acquisition Earnout Payables
ChangeInEstimatedAcquisitionEarnoutPayables
5800000
CY2018Q3 ajg Business Acquisitions Pro Forma Net Income Loss To Controlling Interest
BusinessAcquisitionsProFormaNetIncomeLossToControllingInterest
127500000
CY2018Q3 ajg Business Combination Aggregate Earnout Obligation Maximum
BusinessCombinationAggregateEarnoutObligationMaximum
495700000
CY2018Q3 ajg Cost Reimbursements
CostReimbursements
37300000
CY2018Q3 ajg Business Combination Aggregate Earnout Obligation Recorded Maximum
BusinessCombinationAggregateEarnoutObligationRecordedMaximum
219600000
CY2018Q3 ajg Weighted Average Number Of Common And Common Equivalent Shares Outstanding
WeightedAverageNumberOfCommonAndCommonEquivalentSharesOutstanding
186800000 shares
CY2018Q3 ajg Revenue From Contract With Customer Before Reimbursements Excluding Assessed Tax
RevenueFromContractWithCustomerBeforeReimbursementsExcludingAssessedTax
1741200000

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