2024 Q1 Form 10-K Financial Statement

#000088572524000017 Filed on February 20, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $3.856B $3.725B $14.24B
YoY Change 13.78% 14.9% 12.29%
Cost Of Revenue $1.209B $1.158B $4.391B
YoY Change 15.03% 13.09% 9.69%
Gross Profit $2.648B $2.567B $9.849B
YoY Change 13.26% 15.73% 13.48%
Gross Profit Margin 68.67% 68.91% 69.16%
Selling, General & Admin $1.364B $1.379B $5.190B
YoY Change 12.26% 18.57% 14.82%
% of Gross Profit 51.51% 53.72% 52.7%
Research & Development $366.0M $363.0M $1.414B
YoY Change 8.61% 10.0% 6.88%
% of Gross Profit 13.82% 14.14% 14.36%
Depreciation & Amortization $304.0M $208.0M $828.0M
YoY Change 49.75% 4.52% 3.11%
% of Gross Profit 11.48% 8.1% 8.41%
Operating Expenses $1.973B $1.964B $7.490B
YoY Change 11.72% 18.53% 12.14%
Operating Profit $675.0M $603.0M $2.359B
YoY Change 18.01% 7.49% 17.95%
Interest Expense $69.00M -$65.00M -$265.0M
YoY Change -206.15% 1.56% -43.62%
% of Operating Profit 10.22% -10.78% -11.23%
Other Income/Expense, Net -$67.00M -$14.00M -$93.00M
YoY Change 55.81% -124.14% 144.74%
Pretax Income $608.0M $505.0M $1.985B
YoY Change 36.94% 27.53% 73.97%
Income Tax $115.0M $1.000M $393.0M
% Of Pretax Income 18.91% 0.2% 19.8%
Net Earnings $493.0M $504.0M $1.570B
YoY Change 64.33% 300.0% 144.55%
Net Earnings / Revenue 12.79% 13.53% 11.03%
Basic Earnings Per Share $0.34 $1.08
Diluted Earnings Per Share $0.33 $0.34 $1.07
COMMON SHARES
Basic Shares Outstanding 1.467B shares 1.465B shares 1.453B shares
Diluted Shares Outstanding 1.482B shares 1.464B shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.329B $865.0M $865.0M
YoY Change 308.6% -6.79% -6.79%
Cash & Equivalents $2.329B $865.0M $865.0M
Short-Term Investments
Other Short-Term Assets $671.0M $621.0M $937.0M
YoY Change -5.63% -15.05% -5.83%
Inventory $2.561B $2.484B $2.484B
Prepaid Expenses
Receivables $2.304B $2.228B $2.228B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $8.185B $6.514B $6.514B
YoY Change 43.5% 13.09% 13.09%
LONG-TERM ASSETS
Property, Plant & Equipment $2.897B $2.859B $3.298B
YoY Change 16.91% 16.88% 16.45%
Goodwill $14.36B $14.39B
YoY Change 8.23% 11.35%
Intangibles $5.839B $6.003B
YoY Change -3.65% 1.71%
Long-Term Investments $211.0M $219.0M $413.0M
YoY Change 27.11% 16.49% 1.47%
Other Assets $1.596B $1.531B $4.521B
YoY Change 7.69% 2.07% -2.73%
Total Long-Term Assets $28.48B $28.62B $28.62B
YoY Change 4.77% 7.16% 7.16%
TOTAL ASSETS
Total Short-Term Assets $8.185B $6.514B $6.514B
Total Long-Term Assets $28.48B $28.62B $28.62B
Total Assets $36.67B $35.14B $35.14B
YoY Change 11.48% 8.21% 8.21%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $921.0M $942.0M $942.0M
YoY Change 6.11% 9.28% 9.28%
Accrued Expenses $2.083B $2.646B $2.516B
YoY Change 8.6% 22.5% 30.43%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $1.085B $531.0M $531.0M
YoY Change 112.75% 2555.0% 2555.0%
Total Short-Term Liabilities $4.916B $4.933B $4.933B
YoY Change 20.4% 29.71% 29.71%
LONG-TERM LIABILITIES
Long-Term Debt $9.534B $8.571B $8.571B
YoY Change 12.23% -3.86% -3.86%
Other Long-Term Liabilities $1.919B $1.967B $1.968B
YoY Change -3.81% -3.34% -3.24%
Total Long-Term Liabilities $1.919B $1.967B $10.54B
YoY Change -3.81% -3.34% -3.74%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.916B $4.933B $4.933B
Total Long-Term Liabilities $1.919B $1.967B $10.54B
Total Liabilities $6.835B $6.900B $15.85B
YoY Change 12.45% 18.19% 6.43%
SHAREHOLDERS EQUITY
Retained Earnings $1.314B $819.0M
YoY Change -392.0% -209.2%
Common Stock $20.73B $20.66B
YoY Change 1.75% 1.76%
Preferred Stock
YoY Change
Treasury Stock (at cost) $2.251B $2.251B
YoY Change 0.0% 0.0%
Treasury Stock Shares
Shareholders Equity $19.93B $19.28B $19.28B
YoY Change
Total Liabilities & Shareholders Equity $36.67B $35.14B $35.14B
YoY Change 11.48% 8.21% 8.21%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income $493.0M $504.0M $1.570B
YoY Change 64.33% 300.0% 144.55%
Depreciation, Depletion And Amortization $304.0M $208.0M $828.0M
YoY Change 49.75% 4.52% 3.11%
Cash From Operating Activities $164.0M $957.0M $2.503B
YoY Change -13.68% 18.44% 64.02%
INVESTING ACTIVITIES
Capital Expenditures $179.0M $267.0M $711.0M
YoY Change 61.26% 25.94% 20.92%
Acquisitions $47.00M $1.811B
YoY Change -87.47% 17.44%
Other Investing Activities -$7.000M -$786.0M -$30.00M
YoY Change -22.22% -2810.34% -57.14%
Cash From Investing Activities -$285.0M -$1.053B -$2.574B
YoY Change -41.12% 475.41% 28.0%
FINANCING ACTIVITIES
Cash Dividend Paid $0.00 $28.00M
YoY Change -100.0% -49.09%
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $1.569B 15.00M $5.000M
YoY Change -2373.91% 1400.0% -100.91%
NET CHANGE
Cash From Operating Activities $164.0M 957.0M $2.503B
Cash From Investing Activities -$285.0M -1.053B -$2.574B
Cash From Financing Activities $1.569B 15.00M $5.000M
Net Change In Cash $1.441B -81.00M -$70.00M
YoY Change -496.97% -112.94% -93.28%
FREE CASH FLOW
Cash From Operating Activities $164.0M $957.0M $2.503B
Capital Expenditures $179.0M $267.0M $711.0M
Free Cash Flow -$15.00M $690.0M $1.792B
YoY Change -118.99% 15.77% 91.04%

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<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Accounting Estimates</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">To prepare our consolidated financial statements in accordance with GAAP, management makes estimates and assumptions that may affect the reported amounts of our assets and liabilities, the disclosure of contingent liabilities as of the date of our consolidated financial statements and the reported amounts of our revenues and expenses during the reporting period. Our actual results may differ from these estimates. Refer to </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Critical Accounting Estimates</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> included in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of this Annual Report on Form 10-K for further discussion.</span></div>
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<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Concentrations of Credit Risk</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, derivative financial instruments and accounts and notes receivable. Our investment policy limits exposure to concentrations of credit risk and changes in market conditions. Counterparties to financial instruments expose us to credit-related losses in the event of nonperformance. We transact our financial instruments with a diversified group of major financial institutions with investment grade credit ratings and actively monitor their credit ratings and our outstanding positions to limit our credit exposure. In the normal course, our payment terms with customers, including distributors, hospitals, health care agencies, clinics, doctors' offices and other private and governmental institutions, are typically 30 days in the U.S. but may be longer in international markets and generally do not require collateral.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We record credit loss reserves to </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Allowance for credit losses</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> when we establish Trade accounts receivable</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%"> </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">if credit losses are expected over the asset's contractual life. We base our estimates of credit loss reserves on historical experience and adjust, as necessary, to reflect current conditions using reasonable and supportable forecasts not already reflected in the historical loss information. We utilize an accounts receivable aging approach to determine the reserve to record at accounts receivable commencement for certain customers, applying country or region-specific factors. In performing the assessment of outstanding accounts receivable, regardless of country or region, we may consider significant factors relevant to collectability, including those specific to a customer such as bankruptcy, lengthy average payment cycles and type of account.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We write-off amounts determined to be uncollectible against this reserve. We are not dependent on any single institution, and no single customer accounted for more than ten percent of our net sales in 2023, 2022 and 2021; however, large group purchasing organizations, hospital networks, international distributors and dealers and other buying groups are important to our business and represent a substantial portion of our net sales. </span></div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We closely monitor outstanding receivables for potential collection risks, including those that may arise from economic conditions, in both the U.S. and international economies. Our sales to government-owned or supported customers, particularly in southern Europe, are subject to an increased number of days outstanding prior to payment relative to other countries. Further, the ongoing site-of-service trend of shifting procedure volumes in the U.S. toward non-hospital settings, particularly ambulatory surgery centers and office-based labs, continues. Many of these customers are smaller than those we have historically done business with and may have more limited liquidity. We have adjusted our estimates of credit loss reserves for these customers, regions and conditions, as appropriate. We believe our </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Allowance for credit losses</span> is adequate as of December 31, 2023; however, if significant changes were to occur in the payment practices of government customers, or if there is an increase in bankruptcies among our ambulatory surgery center or office-based customers, we may not be able to collect on receivables due to us from these customers, and our write-offs of uncollectible accounts may increase.
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