2018 Q1 Form 10-K Financial Statement

#000070198518000018 Filed on March 23, 2018

View on sec.gov

Income Statement

Concept 2018 Q1 2017 Q1 2016 Q4
Revenue $4.823B $4.489B $2.581B
YoY Change 7.44% 2.14% 3.99%
Cost Of Revenue $2.783B $2.545B $1.556B
YoY Change 9.35% 6.4% 7.24%
Gross Profit $2.040B $1.944B $1.025B
YoY Change 4.94% -2.9% -0.58%
Gross Profit Margin 42.3% 43.31% 39.71%
Selling, General & Admin $1.054B $956.0M $741.0M
YoY Change 10.25% 3.35% 7.08%
% of Gross Profit 51.67% 49.18% 72.29%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $145.0M $140.0M $133.0M
YoY Change 3.57% 14.75% 19.82%
% of Gross Profit 7.11% 7.2% 12.98%
Operating Expenses $1.054B $956.0M $741.0M
YoY Change 10.25% 3.35% 7.08%
Operating Profit $986.0M $988.0M $284.0M
YoY Change -0.2% -8.35% -16.22%
Interest Expense -$106.0M -$99.00M $97.00M
YoY Change 7.07% 2.06% 22.78%
% of Operating Profit -10.75% -10.02% 34.15%
Other Income/Expense, Net -$38.00M $4.000M $3.000M
YoY Change -1050.0% 300.0%
Pretax Income $842.0M $893.0M $190.0M
YoY Change -5.71% -9.06% -26.92%
Income Tax $269.0M $261.0M $68.00M
% Of Pretax Income 31.95% 29.23% 35.79%
Net Earnings $664.0M $632.0M $122.0M
YoY Change 5.06% -0.63% -25.61%
Net Earnings / Revenue 13.77% 14.08% 4.73%
Basic Earnings Per Share $2.21 $0.43
Diluted Earnings Per Share $2.33 $2.18 $0.42
COMMON SHARES
Basic Shares Outstanding 278.9M shares 285.0M shares 286.0M shares
Diluted Shares Outstanding 290.0M shares

Balance Sheet

Concept 2018 Q1 2017 Q1 2016 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.515B $1.934B $654.0M
YoY Change -21.66% -24.1% -50.11%
Cash & Equivalents $1.515B $1.934B $654.0M
Short-Term Investments
Other Short-Term Assets $228.0M $141.0M $256.0M
YoY Change 61.7% -37.33% -18.73%
Inventory $1.240B $1.096B $1.651B
Prepaid Expenses
Receivables $310.0M $294.0M $325.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $3.293B $3.465B $2.886B
YoY Change -4.96% -16.63% -18.22%
LONG-TERM ASSETS
Property, Plant & Equipment $2.893B $2.741B $2.770B
YoY Change 5.55% 17.64% 17.87%
Goodwill $1.348B $1.348B $1.348B
YoY Change 0.0% 2.28% 2.28%
Intangibles $411.0M $411.0M
YoY Change 0.0% 0.0%
Long-Term Investments $81.00M $79.00M $80.00M
YoY Change 2.53% -8.14% -16.67%
Other Assets $190.0M $186.0M $218.0M
YoY Change 2.15% -25.0% -15.5%
Total Long-Term Assets $4.856B $4.705B $4.777B
YoY Change 3.21% 8.49% 9.46%
TOTAL ASSETS
Total Short-Term Assets $3.293B $3.465B $2.886B
Total Long-Term Assets $4.856B $4.705B $4.777B
Total Assets $8.149B $8.170B $7.663B
YoY Change -0.26% -3.8% -2.91%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $717.0M $683.0M $962.0M
YoY Change 4.98% 2.25% 5.37%
Accrued Expenses $1.029B $997.0M $909.0M
YoY Change 3.21% 2.05% 13.06%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $87.00M $36.00M $23.00M
YoY Change 141.67% 500.0% 475.0%
Total Short-Term Liabilities $2.031B $2.014B $2.007B
YoY Change 0.84% 7.41% 16.15%
LONG-TERM LIABILITIES
Long-Term Debt $5.707B $5.700B $5.701B
YoY Change 0.12% -0.26% -0.21%
Other Long-Term Liabilities $924.0M $831.0M $881.0M
YoY Change 11.19% -8.08% 1.5%
Total Long-Term Liabilities $6.631B $6.531B $6.582B
YoY Change 1.53% -1.33% 0.02%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.031B $2.014B $2.007B
Total Long-Term Liabilities $6.631B $6.531B $6.582B
Total Liabilities $8.662B $8.545B $8.589B
YoY Change 1.37% 0.6% 3.37%
SHAREHOLDERS EQUITY
Retained Earnings -$1.434B $205.0M -$254.0M
YoY Change -799.51% -34.92% 45.14%
Common Stock $819.0M $807.0M $777.0M
YoY Change 1.49% 15.12% 15.8%
Preferred Stock
YoY Change
Treasury Stock (at cost) $162.0M $1.753B $1.725B
YoY Change -90.76% 33.31% 44.35%
Treasury Stock Shares 3.000M shares 29.00M shares 29.00M shares
Shareholders Equity -$753.0M -$729.0M -$1.190B
YoY Change
Total Liabilities & Shareholders Equity $8.149B $8.170B $7.663B
YoY Change -0.26% -3.8% -2.91%

Cashflow Statement

Concept 2018 Q1 2017 Q1 2016 Q4
OPERATING ACTIVITIES
Net Income $664.0M $632.0M $122.0M
YoY Change 5.06% -0.63% -25.61%
Depreciation, Depletion And Amortization $145.0M $140.0M $133.0M
YoY Change 3.57% 14.75% 19.82%
Cash From Operating Activities $1.268B $1.579B -$97.00M
YoY Change -19.7% -10.54% -14.16%
INVESTING ACTIVITIES
Capital Expenditures $108.0M $165.0M $328.0M
YoY Change -34.55% 33.06% 33.88%
Acquisitions
YoY Change
Other Investing Activities -$9.000M $53.00M $1.000M
YoY Change -116.98% 307.69% -99.0%
Cash From Investing Activities -$117.0M -$112.0M -$327.0M
YoY Change 4.46% 0.9% 125.52%
FINANCING ACTIVITIES
Cash Dividend Paid $172.0M $173.0M
YoY Change 18.62% 18.49%
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -369.0M -184.0M -195.0M
YoY Change 100.54% -55.56% -124.71%
NET CHANGE
Cash From Operating Activities 1.268B 1.579B -97.00M
Cash From Investing Activities -117.0M -112.0M -327.0M
Cash From Financing Activities -369.0M -184.0M -195.0M
Net Change In Cash 782.0M 1.283B -619.0M
YoY Change -39.05% 3.47% -216.57%
FREE CASH FLOW
Cash From Operating Activities $1.268B $1.579B -$97.00M
Capital Expenditures $108.0M $165.0M $328.0M
Free Cash Flow $1.160B $1.414B -$425.0M
YoY Change -17.96% -13.83% 18.72%

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us-gaap Net Income Loss
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us-gaap Operating Income Loss
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543000000 USD
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2080000000 USD
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8000000 USD
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2000000 USD
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33000000 USD
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60000000 USD
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10000000 USD
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10000000 USD
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CY2017Q1 us-gaap Preferred Stock Shares Authorized
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10000000 shares
CY2018Q1 us-gaap Preferred Stock Shares Authorized
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10000000 shares
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540000000 USD
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us-gaap Sales Revenue Net
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62.09
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64.14
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value
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57.97
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48.48
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0.027
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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0.033
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.051
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
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0.26
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
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0.25
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.28
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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0.011
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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0.011
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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0.015
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160000000 shares
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12000000 shares
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2202000 shares
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50.05
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285000 shares
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod
1163000 shares
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
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18313000 USD
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
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CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
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P6Y0M161D
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217000000 USD
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62000000 USD
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46000000 USD
us-gaap Unusual Or Infrequent Tax Effect
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92000000 USD
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6000000 shares
CY2017 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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4000000 shares
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3000000 shares
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284000000 shares
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CY2017 us-gaap Weighted Average Number Of Shares Treasury Stock
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27000000 shares
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CY2018 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 products. The Company sells its merchandise through company-owned specialty retail stores in the U.S., Canada, U.K., Ireland 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>
CY2018 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:12px;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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