2016 Q4 Form 10-K Financial Statement

#000141063618000076 Filed on February 20, 2018

View on sec.gov

Income Statement

Concept 2016 Q4 2016 Q3 2016 Q2
Revenue $802.0M $930.0M $827.0M
YoY Change 2.43% 3.79% 5.74%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $120.0M $119.0M $115.0M
YoY Change 6.67% 7.01% 5.6%
% of Gross Profit
Operating Expenses $551.0M $611.0M $528.0M
YoY Change -0.04% 14.18% 4.76%
Operating Profit $248.0M $319.0M $299.0M
YoY Change 6.9% -11.63% 7.55%
Interest Expense -$83.00M -$81.00M -$81.00M
YoY Change 4.67% 12.66% 6.58%
% of Operating Profit -33.47% -25.39% -27.09%
Other Income/Expense, Net -$4.000M -$76.00M -$74.00M
YoY Change -176.92% 3204.35% 0.0%
Pretax Income $166.0M $243.0M $225.0M
YoY Change 5.2% -15.36% 10.29%
Income Tax $65.00M $95.00M $88.00M
% Of Pretax Income 39.16% 39.09% 39.11%
Net Earnings $101.0M $148.0M $137.0M
YoY Change 2.02% -14.94% 11.38%
Net Earnings / Revenue 12.59% 15.91% 16.57%
Basic Earnings Per Share $0.57 $0.83 $0.77
Diluted Earnings Per Share $0.57 $0.83 $0.77
COMMON SHARES
Basic Shares Outstanding 178.0M 178.0M shares 178.0M
Diluted Shares Outstanding 178.0M shares 178.0M

Balance Sheet

Concept 2016 Q4 2016 Q3 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $75.00M $46.00M $52.00M
YoY Change 66.67% -38.67% -64.14%
Cash & Equivalents $75.00M $46.00M $52.00M
Short-Term Investments
Other Short-Term Assets $118.0M $413.0M $357.0M
YoY Change 280.65% -10.22% -22.05%
Inventory $39.00M $40.00M $42.00M
Prepaid Expenses
Receivables $269.0M $302.0M $240.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $784.0M $801.0M $691.0M
YoY Change 19.33% -8.87% -22.36%
LONG-TERM ASSETS
Property, Plant & Equipment $14.99B $14.56B $14.32B
YoY Change 7.6% 7.0% 7.18%
Goodwill $1.345B
YoY Change 3.3%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $72.00M $1.298B $1.385B
YoY Change -7.69% -0.76% 8.71%
Total Long-Term Assets $17.70B $17.17B $17.02B
YoY Change 6.72% 6.61% 8.33%
TOTAL ASSETS
Total Short-Term Assets $784.0M $801.0M $691.0M
Total Long-Term Assets $17.70B $17.17B $17.02B
Total Assets $18.48B $17.97B $17.71B
YoY Change 7.2% 5.81% 6.69%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $154.0M $135.0M $148.0M
YoY Change 22.22% -51.96% -47.89%
Accrued Expenses $609.0M $626.0M $438.0M
YoY Change 23.53% 545.36% 682.14%
Deferred Revenue
YoY Change
Short-Term Debt $849.0M $951.0M $950.0M
YoY Change 35.19% 150.26% 15.71%
Long-Term Debt Due $574.0M $53.00M $54.00M
YoY Change 962.96% 140.91% -12.9%
Total Short-Term Liabilities $2.392B $1.928B $1.740B
YoY Change 56.03% 65.49% 15.08%
LONG-TERM LIABILITIES
Long-Term Debt $5.759B $5.853B $5.861B
YoY Change -1.96% -1.71% 7.58%
Other Long-Term Liabilities $67.00M $2.405B $2.499B
YoY Change -1.47% -0.62% 3.65%
Total Long-Term Liabilities $67.00M $8.258B $8.360B
YoY Change -98.17% -1.4% 6.37%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.392B $1.928B $1.740B
Total Long-Term Liabilities $67.00M $8.258B $8.360B
Total Liabilities $2.459B $12.73B $12.55B
YoY Change -52.68% 6.64% 7.48%
SHAREHOLDERS EQUITY
Retained Earnings -$873.0M
YoY Change -18.64%
Common Stock $6.390B
YoY Change 0.58%
Preferred Stock
YoY Change
Treasury Stock (at cost) $213.0M
YoY Change 48.95%
Treasury Stock Shares 3.702M shares
Shareholders Equity $5.218B $5.238B $5.153B
YoY Change
Total Liabilities & Shareholders Equity $18.48B $17.97B $17.71B
YoY Change 7.2% 5.06% 5.82%

Cashflow Statement

Concept 2016 Q4 2016 Q3 2016 Q2
OPERATING ACTIVITIES
Net Income $101.0M $148.0M $137.0M
YoY Change 2.02% -14.94% 11.38%
Depreciation, Depletion And Amortization $120.0M $119.0M $115.0M
YoY Change 6.67% 7.01% 5.6%
Cash From Operating Activities $344.0M $409.0M $276.0M
YoY Change 6.37% -6.54% 25.8%
INVESTING ACTIVITIES
Capital Expenditures -$383.0M -$331.0M -$313.0M
YoY Change 3.82% 5.99% 24.01%
Acquisitions
YoY Change
Other Investing Activities -$193.0M -$18.00M -$29.00M
YoY Change 270.44% -89.06% -57.54%
Cash From Investing Activities -$576.0M -$349.0M -$342.0M
YoY Change 36.82% -26.8% 6.64%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 258.0M -66.00M 52.00M
YoY Change 282.22% 117.11% -76.56%
NET CHANGE
Cash From Operating Activities 344.0M 409.0M 276.0M
Cash From Investing Activities -576.0M -349.0M -342.0M
Cash From Financing Activities 258.0M -66.00M 52.00M
Net Change In Cash 26.00M -6.000M -14.00M
YoY Change -186.38% -91.38% -111.62%
FREE CASH FLOW
Cash From Operating Activities $344.0M $409.0M $276.0M
Capital Expenditures -$383.0M -$331.0M -$313.0M
Free Cash Flow $727.0M $740.0M $589.0M
YoY Change 5.01% -1.32% 24.84%

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20000000 USD
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20000000 USD
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170000000 USD
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135000000 USD
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203000000 USD
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3 aquisitions
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2084000000 USD
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2222000000 USD
CY2017 us-gaap Operating Expenses
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2113000000 USD
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1075000000 USD
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214000000 USD
CY2016Q2 us-gaap Operating Income Loss
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299000000 USD
CY2016Q3 us-gaap Operating Income Loss
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319000000 USD
CY2016Q4 us-gaap Operating Income Loss
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248000000 USD
CY2016 us-gaap Operating Income Loss
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1080000000 USD
CY2017Q1 us-gaap Operating Income Loss
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227000000 USD
CY2017Q2 us-gaap Operating Income Loss
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308000000 USD
CY2017Q3 us-gaap Operating Income Loss
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430000000 USD
CY2017Q4 us-gaap Operating Income Loss
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279000000 USD
CY2017 us-gaap Operating Income Loss
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1244000000 USD
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15000000 USD
CY2017Q4 us-gaap Operating Leases Future Minimum Payments Due In Five Years
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8000000 USD
CY2017Q4 us-gaap Operating Leases Future Minimum Payments Due In Four Years
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9000000 USD
CY2017Q4 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
12000000 USD
CY2017Q4 us-gaap Operating Leases Future Minimum Payments Due In Two Years
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14000000 USD
CY2017Q4 us-gaap Operating Leases Future Minimum Payments Due Thereafter
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65000000 USD
CY2016Q4 us-gaap Other Assets Current
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118000000 USD
CY2017Q4 us-gaap Other Assets Current
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113000000 USD
CY2016Q4 us-gaap Other Assets Noncurrent
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72000000 USD
CY2017Q4 us-gaap Other Assets Noncurrent
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76000000 USD
CY2015 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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-1000000 USD
CY2016 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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0 USD
CY2016 us-gaap Payments For Proceeds From Removal Costs
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84000000 USD
CY2017 us-gaap Payments For Proceeds From Removal Costs
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76000000 USD
CY2015 us-gaap Payments For Repurchase Of Common Stock
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126000000 USD
CY2017Q4 us-gaap Other Postretirement Defined Benefit Plan Liabilities Noncurrent
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40000000 USD
CY2015 us-gaap Payments For Proceeds From Removal Costs
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107000000 USD
CY2017 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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-1000000 USD
CY2015 us-gaap Other Comprehensive Income Loss Net Of Tax
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-6000000 USD
CY2016 us-gaap Other Comprehensive Income Loss Net Of Tax
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2000000 USD
CY2017 us-gaap Other Comprehensive Income Loss Net Of Tax
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7000000 USD
CY2015 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Tax
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0 USD
CY2016 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Tax
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0 USD
CY2017 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Tax
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0 USD
CY2015 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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5000000 USD
CY2016 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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15000000 USD
CY2017 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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-14000000 USD
CY2015 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Tax
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-6000000 USD
CY2016 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Tax
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-14000000 USD
CY2017 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Tax
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2000000 USD
CY2015 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
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-5000000 USD
CY2016 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
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-6000000 USD
CY2017 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
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CY2015 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
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3000000 USD
CY2016 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
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4000000 USD
CY2017 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
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5000000 USD
CY2015 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
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0 USD
CY2016 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
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17000000 USD
CY2017 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
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-6000000 USD
CY2015 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
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0 USD
CY2016 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
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10000000 USD
CY2017 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
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CY2016Q4 us-gaap Other Liabilities Current
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112000000 USD
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167000000 USD
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67000000 USD
CY2017Q4 us-gaap Other Liabilities Noncurrent
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66000000 USD
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53000000 USD
CY2016 us-gaap Other Noncash Income Expense
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36000000 USD
CY2017 us-gaap Other Noncash Income Expense
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54000000 USD
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15000000 USD
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15000000 USD
CY2017 us-gaap Other Nonoperating Income Expense
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17000000 USD
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65000000 USD
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54000000 USD
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7000000 USD
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5000000 USD
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13000000 USD
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239000000 USD
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261000000 USD
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289000000 USD
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197000000 USD
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204000000 USD
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177000000 USD
CY2015 us-gaap Payments To Acquire Property Plant And Equipment
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1160000000 USD
CY2016 us-gaap Payments To Acquire Property Plant And Equipment
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1311000000 USD
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1434000000 USD
CY2015 us-gaap Pension And Other Postretirement Benefit Contributions
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57000000 USD
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53000000 USD
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48000000 USD
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61000000 USD
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PensionAndOtherPostretirementBenefitExpense
54000000 USD
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57000000 USD
CY2016Q4 us-gaap Preferred Stock Redemption Amount
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10000000 USD
CY2017Q4 us-gaap Preferred Stock Redemption Amount
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8000000 USD
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26000000 USD
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16000000 USD
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28000000 USD
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1000000 USD
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0 USD
CY2017 us-gaap Proceeds From Income Tax Refunds
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0 USD
CY2015 us-gaap Proceeds From Issuance Of Long Term Debt
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565000000 USD
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553000000 USD
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1395000000 USD
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39000000 USD
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26000000 USD
CY2017 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
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26000000 USD
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180000000 USD
CY2016 us-gaap Proceeds From Repayments Of Short Term Debt Maturing In Three Months Or Less
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221000000 USD
CY2017 us-gaap Proceeds From Repayments Of Short Term Debt Maturing In Three Months Or Less
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55000000 USD
CY2015 us-gaap Proceeds From Sale Of Productive Assets
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5000000 USD
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9000000 USD
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15000000 USD
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60000000 USD
CY2016 us-gaap Proceeds From Short Term Debt Maturing In More Than Three Months
ProceedsFromShortTermDebtMaturingInMoreThanThreeMonths
0 USD
CY2017 us-gaap Proceeds From Short Term Debt Maturing In More Than Three Months
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0 USD
CY2015 us-gaap Profit Loss
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476000000 USD
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468000000 USD
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426000000 USD
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19954000000 USD
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21716000000 USD
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14992000000 USD
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16246000000 USD
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132000000 USD
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0 USD
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32000000 USD
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27000000 USD
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29000000 USD
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419000000 USD
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585000000 USD
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PublicUtilitiesPropertyPlantAndEquipmentDisclosureOfCompositeDepreciationRateForPlantsInService
0.0313
CY2016 us-gaap Public Utilities Property Plant And Equipment Disclosure Of Composite Depreciation Rate For Plants In Service
PublicUtilitiesPropertyPlantAndEquipmentDisclosureOfCompositeDepreciationRateForPlantsInService
0.0314
CY2017 us-gaap Public Utilities Property Plant And Equipment Disclosure Of Composite Depreciation Rate For Plants In Service
PublicUtilitiesPropertyPlantAndEquipmentDisclosureOfCompositeDepreciationRateForPlantsInService
0.0307
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19954000000 USD
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21716000000 USD
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19502000000 USD
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21146000000 USD
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0.59
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0.59
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7000000 USD
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7000000 USD
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3159000000 USD
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743000000 USD
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827000000 USD
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930000000 USD
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802000000 USD
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3302000000 USD
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756000000 USD
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844000000 USD
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936000000 USD
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1061000000 USD
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403000000 USD
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1664000000 USD
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23000000 USD
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31000000 USD
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22000000 USD
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1000000 USD
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144000000 USD
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896000000 USD
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60000000 USD
CY2017 us-gaap Repayments Of Short Term Debt Maturing In More Than Three Months
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24000000 USD
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33000000 USD
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19000000 USD
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15000000 USD
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6100000 shares
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5218000000 USD
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14000000 USD
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13000000 USD
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31000000 USD
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33000000 USD
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1000000 shares
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213000000 USD
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247000000 USD
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126000000 USD
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65000000 USD
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28000000 USD
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20000000 USD
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27000000 USD
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4000000 USD
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1000000 USD
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905000000 USD
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4000000 USD
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5000000 USD
CY2017 us-gaap Stock Issued During Period Value Dividend Reinvestment Plan
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8000000 USD
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5000000 USD
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54000000 USD
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9000000 USD
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13000000 USD
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263000000 USD
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212000000 USD
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233000000 USD
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8000000 USD
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169000000 USD
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106000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
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74000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
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71000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
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10000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
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10000000 USD
CY2017Q4 us-gaap Unrecorded Unconditional Purchase Obligation Balance On Fifth Anniversary
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64000000 USD
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59000000 USD
CY2017Q4 us-gaap Unrecorded Unconditional Purchase Obligation Balance On Fourth Anniversary
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65000000 USD
CY2017Q4 us-gaap Unrecorded Unconditional Purchase Obligation Balance On Second Anniversary
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65000000 USD
CY2017Q4 us-gaap Unrecorded Unconditional Purchase Obligation Balance On Third Anniversary
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65000000 USD
CY2017Q4 us-gaap Unrecorded Unconditional Purchase Obligation Due After Five Years
UnrecordedUnconditionalPurchaseObligationDueAfterFiveYears
661000000 USD
CY2015 us-gaap Utilities Operating Expense Depreciation And Amortization
UtilitiesOperatingExpenseDepreciationAndAmortization
440000000 USD
CY2016 us-gaap Utilities Operating Expense Depreciation And Amortization
UtilitiesOperatingExpenseDepreciationAndAmortization
470000000 USD
CY2017 us-gaap Utilities Operating Expense Depreciation And Amortization
UtilitiesOperatingExpenseDepreciationAndAmortization
492000000 USD
CY2015 us-gaap Utilities Operating Expense Maintenance And Operations
UtilitiesOperatingExpenseMaintenanceAndOperations
1404000000 USD
CY2016 us-gaap Utilities Operating Expense Maintenance And Operations
UtilitiesOperatingExpenseMaintenanceAndOperations
1504000000 USD
CY2017 us-gaap Utilities Operating Expense Maintenance And Operations
UtilitiesOperatingExpenseMaintenanceAndOperations
1378000000 USD
CY2015 us-gaap Utilities Operating Expense Taxes
UtilitiesOperatingExpenseTaxes
243000000 USD
CY2016 us-gaap Utilities Operating Expense Taxes
UtilitiesOperatingExpenseTaxes
258000000 USD
CY2017 us-gaap Utilities Operating Expense Taxes
UtilitiesOperatingExpenseTaxes
259000000 USD
CY2015 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
1000000 shares
CY2016 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
1000000 shares
CY2017 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
1000000 shares
CY2015 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
180000000 shares
CY2016 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
179000000 shares
CY2017 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
179000000 shares
CY2015 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
179000000 shares
CY2016 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
178000000 shares
CY2017 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
178000000 shares
CY2017 us-gaap Derivatives Reporting Of Derivative Activity
DerivativesReportingOfDerivativeActivity
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:4px;padding-top:24px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Derivative Financial Instruments</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:4px;text-align:justify;text-indent:37px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company uses derivative financial instruments for purposes of hedging exposures to fluctuations in interest rates. These derivative contracts are entered into for periods consistent with the related underlying exposures and do not constitute positions independent of those exposures. The Company does not enter into derivative contracts for speculative purposes and does not use leveraged instruments.</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:16px;text-align:justify;text-indent:37px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">All derivatives are recognized on the balance sheet at fair value. On the date the derivative contract is entered into, the Company may designate the derivative as a hedge of the fair value of a recognized asset or liability (fair-value hedge) or a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (cash-flow hedge).</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:16px;text-align:justify;text-indent:37px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Changes in the fair value of a fair-value hedge, along with the gain or loss on the underlying hedged item, are recorded in current-period earnings. The gains and losses on the effective portion of cash-flow hedges are recorded in other comprehensive income, until earnings are affected by the variability of cash flows. Any ineffective portion of designated cash-flow hedges is recognized in current-period earnings.</font></div><div style="line-height:120%;padding-bottom:24px;padding-top:16px;text-align:justify;text-indent:37px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Cash flows from derivative contracts are included in net cash provided by operating activities in the accompanying Consolidated Statements of Cash Flows.</font></div></div>
CY2017 us-gaap Reclassifications
Reclassifications
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:4px;padding-top:24px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Reclassifications</font></div><div style="line-height:120%;padding-bottom:24px;padding-top:4px;text-align:justify;text-indent:37px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain reclassifications have been made to prior periods in the accompanying Consolidated Financial Statements and notes to conform to the current presentation.</font></div></div>
CY2017 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:4px;padding-top:24px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates </font></div><div style="line-height:120%;padding-bottom:24px;padding-top:4px;text-align:justify;text-indent:37px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States (&#8220;GAAP&#8221;) requires management to make estimates, assumptions and judgments that affect the Company&#8217;s financial condition, results of operations and cash flows. Actual results could differ from these estimates, judgments and assumptions. The Company considers its critical accounting estimates to include: the application of regulatory accounting principles and the related determination and estimation of regulatory assets and liabilities; assumptions used in impairment testing of goodwill and other long-lived assets, including regulatory assets; revenue recognition and the estimates used in the calculation of unbilled revenue; accounting for income taxes and the recently enacted Tax Cuts and Jobs Act (the &#8220;TCJA&#8221;); benefit plan assumptions; and the judgments and estimates used in the determining loss contingencies. The Company&#8217;s critical accounting estimates that are particularly sensitive to change in the near term are amounts reported for regulatory assets and liabilities, goodwill, income taxes, benefit plan assumptions and contingency-related obligations.</font></div></div>

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