2017 Q1 Form 10-K Financial Statement

#000070198517000022 Filed on March 17, 2017

View on sec.gov

Income Statement

Concept 2017 Q1 2016 Q1 2015 Q4
Revenue $4.489B $4.395B $2.482B
YoY Change 2.14% 8.01% 7.03%
Cost Of Revenue $2.545B $2.392B $1.451B
YoY Change 6.4% 7.07% 5.76%
Gross Profit $1.944B $2.002B $1.031B
YoY Change -2.9% 9.1% 8.87%
Gross Profit Margin 43.31% 45.55% 41.54%
Selling, General & Admin $956.0M $925.0M $692.0M
YoY Change 3.35% 5.35% 4.37%
% of Gross Profit 49.18% 46.2% 67.12%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $140.0M $122.0M $111.0M
YoY Change 14.75% 9.91% 2.78%
% of Gross Profit 7.2% 6.09% 10.77%
Operating Expenses $956.0M $925.0M $692.0M
YoY Change 3.35% 5.35% 4.37%
Operating Profit $988.0M $1.078B $339.0M
YoY Change -8.35% 12.64% 19.37%
Interest Expense -$99.00M -$97.00M $79.00M
YoY Change 2.06% 24.36% -1.25%
% of Operating Profit -10.02% -9.0% 23.3%
Other Income/Expense, Net $4.000M $1.000M $0.00
YoY Change 300.0% 0.0% -100.0%
Pretax Income $893.0M $982.0M $260.0M
YoY Change -9.06% 11.59% 26.83%
Income Tax $261.0M $346.0M $96.00M
% Of Pretax Income 29.23% 35.23% 36.92%
Net Earnings $632.0M $636.0M $164.0M
YoY Change -0.63% 12.57% 24.24%
Net Earnings / Revenue 14.08% 14.47% 6.61%
Basic Earnings Per Share $2.21 $2.19 $0.56
Diluted Earnings Per Share $2.18 $2.15 $0.55
COMMON SHARES
Basic Shares Outstanding 285.0M shares 287.1M shares 291.0M shares
Diluted Shares Outstanding 296.0M shares

Balance Sheet

Concept 2017 Q1 2016 Q1 2015 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.934B $2.548B $1.311B
YoY Change -24.1% 51.58% 75.97%
Cash & Equivalents $1.934B $2.548B $1.311B
Short-Term Investments
Other Short-Term Assets $141.0M $225.0M $315.0M
YoY Change -37.33% -2.17% 0.32%
Inventory $1.096B $1.122B $1.620B
Prepaid Expenses
Receivables $294.0M $261.0M $283.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $3.465B $4.156B $3.529B
YoY Change -16.63% 29.92% 23.87%
LONG-TERM ASSETS
Property, Plant & Equipment $2.741B $2.330B $2.350B
YoY Change 17.64% 2.33% 3.02%
Goodwill $1.348B $1.318B $1.318B
YoY Change 2.28% 0.0% 0.0%
Intangibles $411.0M $411.0M $411.0M
YoY Change 0.0% 0.0% 0.0%
Long-Term Investments $79.00M $86.00M $96.00M
YoY Change -8.14% -14.85% 1271.43%
Other Assets $186.0M $248.0M $258.0M
YoY Change -25.0% 0.4% -11.03%
Total Long-Term Assets $4.705B $4.337B $4.364B
YoY Change 8.49% 1.4% 1.49%
TOTAL ASSETS
Total Short-Term Assets $3.465B $4.156B $3.529B
Total Long-Term Assets $4.705B $4.337B $4.364B
Total Assets $8.170B $8.493B $7.893B
YoY Change -3.8% 13.6% 10.41%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $683.0M $668.0M $913.0M
YoY Change 2.25% 8.97% 9.08%
Accrued Expenses $997.0M $977.0M $804.0M
YoY Change 2.05% 8.56% 9.39%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $36.00M $6.000M $4.000M
YoY Change 500.0% -98.12%
Total Short-Term Liabilities $2.014B $1.875B $1.728B
YoY Change 7.41% 11.67% -3.95%
LONG-TERM LIABILITIES
Long-Term Debt $5.700B $5.715B $5.713B
YoY Change -0.26% 21.03% 20.05%
Other Long-Term Liabilities $831.0M $904.0M $868.0M
YoY Change -8.08% 10.24% 9.05%
Total Long-Term Liabilities $6.531B $6.619B $6.581B
YoY Change -1.33% 19.43% 18.47%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.014B $1.875B $1.728B
Total Long-Term Liabilities $6.531B $6.619B $6.581B
Total Liabilities $8.545B $8.494B $8.309B
YoY Change 0.6% 17.63% 12.99%
SHAREHOLDERS EQUITY
Retained Earnings $205.0M $315.0M -$175.0M
YoY Change -34.92% 35.19% -24.24%
Common Stock $807.0M $701.0M $671.0M
YoY Change 15.12% 20.45% 21.56%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.753B $1.315B $1.195B
YoY Change 33.31% 58.05% 50.69%
Treasury Stock Shares 29.00M shares 23.00M shares 22.00M shares
Shareholders Equity -$729.0M -$259.0M -$658.0M
YoY Change
Total Liabilities & Shareholders Equity $8.170B $8.493B $7.893B
YoY Change -3.8% 13.6% 10.41%

Cashflow Statement

Concept 2017 Q1 2016 Q1 2015 Q4
OPERATING ACTIVITIES
Net Income $632.0M $636.0M $164.0M
YoY Change -0.63% 12.57% 24.24%
Depreciation, Depletion And Amortization $140.0M $122.0M $111.0M
YoY Change 14.75% 9.91% 2.78%
Cash From Operating Activities $1.579B $1.765B -$113.0M
YoY Change -10.54% 24.65% 48.68%
INVESTING ACTIVITIES
Capital Expenditures $165.0M $124.0M $245.0M
YoY Change 33.06% -4.62% 3.81%
Acquisitions
YoY Change
Other Investing Activities $53.00M $13.00M $100.0M
YoY Change 307.69% 1200.0%
Cash From Investing Activities -$112.0M -$111.0M -$145.0M
YoY Change 0.9% -13.95% -38.56%
FINANCING ACTIVITIES
Cash Dividend Paid $172.0M $145.0M $146.0M
YoY Change 18.62% 45.0% 46.0%
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -184.0M -414.0M 789.0M
YoY Change -55.56% 20.35% -976.67%
NET CHANGE
Cash From Operating Activities 1.579B 1.765B -113.0M
Cash From Investing Activities -112.0M -111.0M -145.0M
Cash From Financing Activities -184.0M -414.0M 789.0M
Net Change In Cash 1.283B 1.240B 531.0M
YoY Change 3.47% 31.5% -232.09%
FREE CASH FLOW
Cash From Operating Activities $1.579B $1.765B -$113.0M
Capital Expenditures $165.0M $124.0M $245.0M
Free Cash Flow $1.414B $1.641B -$358.0M
YoY Change -13.83% 27.6% 14.74%

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60000000 USD
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8000000 USD
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CY2015 us-gaap Payments To Acquire Property Plant And Equipment
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CY2016Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
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CY2016Q1 us-gaap Preferred Stock Shares Authorized
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CY2017Q1 us-gaap Preferred Stock Shares Authorized
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CY2017 us-gaap Proceeds From Equity Method Investment Dividends Or Distributions Return Of Capital
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CY2016 us-gaap Proceeds From Sales Of Assets Investing Activities
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CY2017 us-gaap Proceeds From Stock Options Exercised
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CY2016Q4 us-gaap Sales Revenue Net
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CY2015 us-gaap Share Based Compensation
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CY2016 us-gaap Share Based Compensation
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ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod
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CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeitures Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue
63.11
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod
1758000 shares
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
54.03
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
85.61
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
75.09
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Number
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5791000 shares
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Number
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5292000 shares
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue
54.41
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue
64.14
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod
1754000 shares
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue
38.93
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.030
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.027
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.033
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.3
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.26
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.25
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.014
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.011
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.011
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Authorized
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized
160000000 shares
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
16000000 shares
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
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3292000 shares
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
29.90
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
399000 shares
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod
851000 shares
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CY2017 us-gaap Nature Of Operations
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Description of Business</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">L Brands, Inc. (&#8220;the Company&#8221;) operates in the highly competitive specialty retail business. The Company is a specialty retailer of women&#8217;s intimate and other apparel, personal care, beauty and home fragrance categories. The Company sells its merchandise through company-owned specialty retail stores in the U.S., Canada, U.K. and Greater China, which are primarily mall-based, and through its websites and other channels. The Company's other international operations are primarily through franchise, license and wholesale partners. The Company currently operates the following retail brands:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:6px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:0px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Victoria&#8217;s Secret</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:6px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:0px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">PINK</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:6px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:0px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Bath&#160;&amp; Body Works</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:6px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:0px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">La Senza</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:6px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:0px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Henri Bendel</font></div></td></tr></table></div>
CY2017 us-gaap Use Of Estimates
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Use of Estimates in the Preparation of Financial Statements</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available.</font></div></div>

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