2023 Q3 Form 10-K Financial Statement

#000072137123000060 Filed on August 15, 2023

View on sec.gov

Income Statement

Concept 2023 Q3 2023 Q2 2023
Revenue $54.76B $53.45B $205.0B
YoY Change 10.4% 13.48% 13.04%
Cost Of Revenue $53.00B $51.63B $198.1B
YoY Change 10.43% 13.47% 13.33%
Gross Profit $1.768B $1.827B $6.889B
YoY Change 9.54% 13.83% 5.26%
Gross Profit Margin 3.23% 3.42% 3.36%
Selling, General & Admin $1.197B $1.267B $4.834B
YoY Change 0.0% 9.7% 6.08%
% of Gross Profit 67.7% 69.35% 70.17%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $172.0M $176.0M $692.0M
YoY Change 0.58% -1.68% 0.0%
% of Gross Profit 9.73% 9.63% 10.04%
Operating Expenses $1.197B $1.337B $4.834B
YoY Change 0.0% 8.61% 6.08%
Operating Profit -$14.00M $490.0M $727.0M
YoY Change -110.22% 31.02% -221.98%
Interest Expense $14.00M -$15.00M $93.00M
YoY Change -44.0% -55.88% -37.58%
% of Operating Profit -3.06% 12.79%
Other Income/Expense, Net $2.000M -$1.000M $4.000M
YoY Change -200.0% -96.67% -125.0%
Pretax Income -$26.00M $121.0M $638.0M
YoY Change -123.64% -532.14% -182.96%
Income Tax -$32.00M $187.0M $376.0M
% Of Pretax Income 154.55% 58.93%
Net Earnings $5.000M -$64.00M $261.0M
YoY Change -95.45% -146.38% -127.97%
Net Earnings / Revenue 0.01% -0.12% 0.13%
Basic Earnings Per Share $0.02 $1.00
Diluted Earnings Per Share $0.02 -$0.25 $1.00
COMMON SHARES
Basic Shares Outstanding 250.7M shares 254.6M shares 261.0M shares
Diluted Shares Outstanding 250.0M shares 262.0M shares

Balance Sheet

Concept 2023 Q3 2023 Q2 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.854B $4.043B $4.043B
YoY Change 10.37% -14.29% -14.29%
Cash & Equivalents $3.854B $4.043B $4.043B
Short-Term Investments
Other Short-Term Assets $2.582B $2.362B $2.506B
YoY Change 13.54% 16.87% 24.0%
Inventory $16.99B $15.94B $15.94B
Prepaid Expenses
Receivables $11.27B $11.34B $11.34B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $34.69B $33.83B $33.83B
YoY Change 6.09% 2.73% 2.73%
LONG-TERM ASSETS
Property, Plant & Equipment $2.441B $2.462B $2.897B
YoY Change 4.36% 4.28% 2.8%
Goodwill $4.025B $4.609B
YoY Change -29.07% -21.28%
Intangibles $1.407B $1.472B
YoY Change -16.84% -17.02%
Long-Term Investments
YoY Change
Other Assets $1.149B $1.041B $606.0M
YoY Change 16.65% 9.23% 22.18%
Total Long-Term Assets $9.022B $9.584B $9.584B
YoY Change -15.61% -12.42% -12.42%
TOTAL ASSETS
Total Short-Term Assets $34.69B $33.83B $33.83B
Total Long-Term Assets $9.022B $9.584B $9.584B
Total Assets $43.71B $43.42B $43.42B
YoY Change 0.74% -1.05% -1.05%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $31.54B $29.81B $29.81B
YoY Change 11.21% 9.9% 9.9%
Accrued Expenses $2.737B $3.059B $3.059B
YoY Change 4.51% 7.64% 7.64%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $788.0M $792.0M $792.0M
YoY Change 36.33% 36.55% 36.55%
Total Short-Term Liabilities $35.07B $33.71B $33.71B
YoY Change 11.11% 10.33% 10.33%
LONG-TERM LIABILITIES
Long-Term Debt $3.890B $3.909B $3.909B
YoY Change -17.04% -17.44% -17.44%
Other Long-Term Liabilities $375.0M
YoY Change -3.35%
Total Long-Term Liabilities $3.890B $3.909B $4.284B
YoY Change -17.04% -17.44% -16.38%
TOTAL LIABILITIES
Total Short-Term Liabilities $35.07B $33.71B $33.71B
Total Long-Term Liabilities $3.890B $3.909B $4.284B
Total Liabilities $47.20B $46.27B $46.27B
YoY Change 4.5% 3.77% 3.77%
SHAREHOLDERS EQUITY
Retained Earnings -$654.0M -$534.0M
YoY Change 117.28% 90.71%
Common Stock $2.728B $2.747B
YoY Change 5.9% -2.35%
Preferred Stock
YoY Change
Treasury Stock (at cost) $5.400B $4.914B
YoY Change 39.18% 57.1%
Treasury Stock Shares
Shareholders Equity -$3.491B -$2.852B -$2.852B
YoY Change
Total Liabilities & Shareholders Equity $43.71B $43.42B $43.42B
YoY Change 0.74% -1.05% -1.05%

Cashflow Statement

Concept 2023 Q3 2023 Q2 2023
OPERATING ACTIVITIES
Net Income $5.000M -$64.00M $261.0M
YoY Change -95.45% -146.38% -127.97%
Depreciation, Depletion And Amortization $172.0M $176.0M $692.0M
YoY Change 0.58% -1.68% 0.0%
Cash From Operating Activities $545.0M $858.0M $2.839B
YoY Change 2269.57% -71.32% -9.06%
INVESTING ACTIVITIES
Capital Expenditures $92.00M $217.0M $481.0M
YoY Change 31.43% -232.32% 24.29%
Acquisitions $10.00M
YoY Change -54.55%
Other Investing Activities $29.00M $11.00M $27.00M
YoY Change -127.5% -97.17%
Cash From Investing Activities -$63.00M -$206.0M -$454.0M
YoY Change -10.0% 0.98% -180.07%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $2.000B
YoY Change 100.0%
Debt Paid & Issued, Net $7.000M $579.0M
YoY Change 0.0% -34.58%
Cash From Financing Activities -$666.0M -592.0M -$3.051B
YoY Change -42.73% 42.65% 23.87%
NET CHANGE
Cash From Operating Activities $545.0M 858.0M $2.839B
Cash From Investing Activities -$63.00M -206.0M -$454.0M
Cash From Financing Activities -$666.0M -592.0M -$3.051B
Net Change In Cash -$189.0M 60.00M -$674.0M
YoY Change -84.57% -97.47% -151.45%
FREE CASH FLOW
Cash From Operating Activities $545.0M $858.0M $2.839B
Capital Expenditures $92.00M $217.0M $481.0M
Free Cash Flow $453.0M $641.0M $2.358B
YoY Change -1063.83% -79.69% -13.78%

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CY2023 cah Netproceedstaxwithholdingsfromsharebasedcompensation
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CY2023 us-gaap Payments Of Dividends Common Stock
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CY2022 us-gaap Net Cash Provided By Used In Financing Activities
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CY2021 us-gaap Net Cash Provided By Used In Financing Activities
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CY2023 cah Cash Reclassifiedto Assets Heldfor Sale
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CY2022 cah Cash Reclassifiedto Assets Heldfor Sale
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CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2021Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2023Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022 us-gaap Interest Paid Net
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CY2021 us-gaap Interest Paid Net
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CY2023 us-gaap Income Taxes Paid Net
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CY2022 us-gaap Income Taxes Paid Net
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CY2021 us-gaap Income Taxes Paid Net
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CY2023 us-gaap Use Of Estimates
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<div><span style="color:#000000;font-family:'Arial Narrow',sans-serif;font-size:12pt;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-bottom:3pt;text-align:justify"><span style="color:#000000;font-family:'Arial Narrow',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates, judgments and assumptions are used in the accounting and disclosure related to, among other items, allowance for doubtful accounts, inventory valuation and reserves, goodwill and other intangible asset impairment, vendor reserves, loss contingencies (including product liability and self-insurance accruals) and income taxes. Actual amounts may differ from these estimated amounts.</span></div>
CY2023Q2 us-gaap Notes Receivable Net
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CY2023Q2 us-gaap Notes And Loans Receivable Net Current
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CY2022Q2 us-gaap Notes Receivable Net
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CY2022Q2 us-gaap Notes And Loans Receivable Net Current
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CY2023 us-gaap Concentration Risk Credit Risk
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<div><span style="color:#000000;font-family:'Arial Narrow',sans-serif;font-size:12pt;font-weight:700;line-height:120%">Concentrations of Credit Risk</span></div><div style="margin-bottom:3pt;text-align:justify"><span style="color:#000000;font-family:'Arial Narrow',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We maintain cash depository accounts with major banks, and we invest in high quality, short-term liquid instruments, and in marketable securities. Our short-term liquid instruments mature within three months and we have not historically incurred any related losses.</span></div>Our trade receivables and finance notes and related accrued interest are exposed to a concentration of credit risk with certain large customers and with customers in the retail and healthcare sectors. Credit risk can be affected by changes in reimbursement and other economic pressures impacting the healthcare industry. With respect to customers in the retail and healthcare sectors, such credit risk is limited due to supporting collateral and the diversity of the customer base, including its wide geographic dispersion. We perform regular credit evaluations of our customers’ financial conditions and maintain reserves for losses through the established allowance for doubtful accounts. Historically, such losses have been within our expectations. Refer to the "Receivables and Allowance for Doubtful Accounts" section within this Note for additional information on the accounting treatment of reserves for allowance for doubtful accounts.
CY2023 us-gaap Restructuring Charges
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CY2022 us-gaap Restructuring Charges
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CY2021 us-gaap Restructuring Charges
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CY2023 cah Effective Income Tax Rate Reconciliation Withholding Taxes
EffectiveIncomeTaxRateReconciliationWithholdingTaxes
0.010
CY2023 cah Concentration Risk Largest Group Purchasing Organizations
ConcentrationRiskLargestGroupPurchasingOrganizations
2 organization
CY2023 cah Concentration Risk Largest Group Purchasing Organizations
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2 organization
CY2023Q2 us-gaap Percentage Of Lifo Inventory
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0.55
CY2022Q2 us-gaap Percentage Of Lifo Inventory
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CY2023Q2 us-gaap Inventory Lifo Reserve
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CY2021 us-gaap Inventory Write Down
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CY2023 us-gaap Depreciation
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CY2022 us-gaap Depreciation
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CY2021 us-gaap Depreciation
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CY2023Q2 us-gaap Property Plant And Equipment Gross
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CY2022Q2 us-gaap Property Plant And Equipment Gross
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CY2023Q2 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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CY2022Q2 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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CY2023Q2 us-gaap Property Plant And Equipment Net
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CY2022Q2 us-gaap Property Plant And Equipment Net
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CY2023Q2 us-gaap Longterm Debt Weighted Average Interest Rate
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CY2023 us-gaap Number Of Operating Segments
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CY2023 us-gaap Number Of Reportable Segments
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2 segment
CY2023Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
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CY2023Q2 cah Vendor Reserves
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CY2022Q2 cah Vendor Reserves
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CY2023Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
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CY2022 cah Effective Income Tax Rate Reconciliation Withholding Taxes
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-0.011
CY2023 us-gaap Guarantees Indemnifications And Warranties Policies
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<div><span style="color:#000000;font-family:'Arial Narrow',sans-serif;font-size:12pt;font-weight:700;line-height:120%">Guarantees</span></div><div style="margin-bottom:3pt;text-align:justify"><span style="color:#000000;font-family:'Arial Narrow',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In the ordinary course of business, we agree to indemnify certain other parties under acquisition and disposition agreements, customer agreements, intellectual property licensing agreements and other agreements. Such indemnification obligations vary in scope and, when defined, in duration. In many cases, a maximum obligation is not explicitly stated, and therefore the overall maximum amount of the liability under such indemnification obligations cannot be reasonably estimated. Where appropriate, such indemnification obligations are recorded as a liability. Historically, we have not, individually or in the aggregate, made payments under these indemnification obligations in any material amounts. In certain circumstances, we believe that existing insurance arrangements, subject to the general deduction and exclusion provisions, would cover portions of the liability that may arise from these indemnification obligations. In addition, we believe that the likelihood of a material liability being triggered under these indemnification obligations is not probable.</span></div><div style="margin-bottom:3pt;text-align:justify"><span style="color:#000000;font-family:'Arial Narrow',sans-serif;font-size:10pt;font-weight:400;line-height:120%">From time to time we enter into agreements that obligate us to make fixed payments upon the occurrence of certain events. Such obligations primarily relate to obligations arising under acquisition </span></div>transactions, where we have agreed to make payments based upon the achievement of certain financial performance measures by the acquired business. Generally, the obligation is capped at an explicit amount. There were no material obligations at June 30, 2023.
CY2023 us-gaap Common Stock Dividends Per Share Cash Paid
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CY2022 us-gaap Common Stock Dividends Per Share Cash Paid
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1.96
CY2021 us-gaap Common Stock Dividends Per Share Cash Paid
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1.94
CY2022Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
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0.030
CY2023Q2 us-gaap Finance Lease Weighted Average Discount Rate Percent
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0.031
CY2023Q2 cah Revenue Recognition Reservefor Sales Returnsand Allowances
RevenueRecognitionReserveforSalesReturnsandAllowances
474000000 usd
CY2022Q2 cah Revenue Recognition Reservefor Sales Returnsand Allowances
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617000000 usd
CY2023 us-gaap Revenue Recognition Sales Returns Reserve For Sales Returns
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2200000000 usd
CY2022 us-gaap Revenue Recognition Sales Returns Reserve For Sales Returns
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CY2021 us-gaap Revenue Recognition Sales Returns Reserve For Sales Returns
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CY2022Q2 us-gaap Finance Lease Weighted Average Discount Rate Percent
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0.018
CY2023 us-gaap Derivatives Methods Of Accounting Hedging Derivatives
DerivativesMethodsOfAccountingHedgingDerivatives
<div><span style="color:#000000;font-family:'Arial Narrow',sans-serif;font-size:12pt;font-weight:700;line-height:120%">Interest Rate, Currency and Commodity Risk</span></div><div style="margin-bottom:3pt;text-align:justify"><span style="color:#000000;font-family:'Arial Narrow',sans-serif;font-size:10pt;font-weight:400;line-height:120%">All derivative instruments are recognized at fair value on the consolidated balance sheets and all changes in fair value are recognized in net earnings or shareholders’ equity through AOCI, net of tax.</span></div><div style="margin-bottom:3pt;text-align:justify"><span style="color:#000000;font-family:'Arial Narrow',sans-serif;font-size:10pt;font-weight:400;line-height:120%">For contracts that qualify for hedge accounting treatment, the hedge contracts must be effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the contract. Hedge effectiveness is assessed periodically. Any contract not designated as a hedge, or so designated but ineffective, is adjusted to fair value and recognized immediately in net earnings. If a fair value or cash flow hedge ceases to qualify for hedge accounting treatment, the contract continues to be carried on the balance sheet at fair value until settled and future adjustments to the contract’s fair value are recognized immediately in net earnings. If a forecasted transaction is probable not to occur, amounts previously deferred in AOCI are recognized immediately in net earnings. Interest payments received from the cross-currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense, net in the consolidated statements of earnings/(loss).</span></div><div style="margin-bottom:3pt;text-align:justify"><span style="color:#000000;font-family:'Arial Narrow',sans-serif;font-size:10pt;font-weight:400;line-height:120%">See </span><span style="color:#0000ff;font-family:'Arial Narrow',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline"><a href="#ibd360c6108934d33aa2a235dd3fdd8d8_127" style="color:#0000ff;font-family:'Arial Narrow',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">Note 10</a></span><span style="color:#000000;font-family:'Arial Narrow',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> for additional information regarding our derivative instruments, including the accounting treatment for instruments designated as fair value, cash flow, net investment and economic hedges.</span></div>
CY2023 us-gaap Severance Costs1
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