2017 Q3 Form 10-Q Financial Statement

#000081509717000023 Filed on September 29, 2017

View on sec.gov

Income Statement

Concept 2017 Q3 2016 Q3
Revenue $5.515B $5.097B
YoY Change 8.2% 4.38%
Cost Of Revenue $3.013B $2.563B
YoY Change 17.56% 2.93%
Gross Profit $2.502B $2.534B
YoY Change -1.26% 5.89%
Gross Profit Margin 45.37% 49.72%
Selling, General & Admin $547.0M $529.0M
YoY Change 3.4% 9.3%
% of Gross Profit 21.86% 20.88%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $472.0M $442.0M
YoY Change 6.79% 10.78%
% of Gross Profit 18.86% 17.44%
Operating Expenses $547.0M $529.0M
YoY Change 3.4% 9.3%
Operating Profit $1.393B $1.562B
YoY Change -10.82% 3.44%
Interest Expense $49.00M $61.00M
YoY Change -19.67% 15.09%
% of Operating Profit 3.52% 3.91%
Other Income/Expense, Net -$25.00M -$97.00M
YoY Change -74.23% -62.69%
Pretax Income $1.368B $1.465B
YoY Change -6.62% 17.2%
Income Tax $39.00M $41.00M
% Of Pretax Income 2.85% 2.8%
Net Earnings $1.329B $1.424B
YoY Change -6.67% 17.11%
Net Earnings / Revenue 24.1% 27.94%
Basic Earnings Per Share $1.84 $1.93
Diluted Earnings Per Share $1.83 $1.93
COMMON SHARES
Basic Shares Outstanding 723.0M shares 737.0M shares
Diluted Shares Outstanding 726.0M shares 739.0M shares

Balance Sheet

Concept 2017 Q3 2016 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $489.0M $462.0M
YoY Change 5.84% -14.29%
Cash & Equivalents $489.0M $462.0M
Short-Term Investments
Other Short-Term Assets $491.0M $355.0M
YoY Change 38.31% 10.59%
Inventory $357.0M $314.0M
Prepaid Expenses
Receivables $324.0M $321.0M
Other Receivables $0.00 $102.0M
Total Short-Term Assets $1.661B $1.554B
YoY Change 6.89% -3.9%
LONG-TERM ASSETS
Property, Plant & Equipment $34.17B $32.86B
YoY Change 3.98% 1.96%
Goodwill $2.957B $2.964B
YoY Change -0.24% -2.88%
Intangibles $1.247B $1.290B
YoY Change -3.33% 3.45%
Long-Term Investments
YoY Change
Other Assets $606.0M $660.0M
YoY Change -8.18% 1.69%
Total Long-Term Assets $38.98B $37.78B
YoY Change 3.19% 1.61%
TOTAL ASSETS
Total Short-Term Assets $1.661B $1.554B
Total Long-Term Assets $38.98B $37.78B
Total Assets $40.64B $39.33B
YoY Change 3.33% 1.38%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $639.0M $704.0M
YoY Change -9.23% 21.8%
Accrued Expenses $1.845B $1.738B
YoY Change 6.16% 28.84%
Deferred Revenue
YoY Change
Short-Term Debt $182.0M $334.0M
YoY Change -45.51% 778.95%
Long-Term Debt Due $1.265B $739.0M
YoY Change 71.18% -39.33%
Total Short-Term Liabilities $7.969B $7.100B
YoY Change 12.24% 5.2%
LONG-TERM LIABILITIES
Long-Term Debt $7.723B $8.320B
YoY Change -7.18% 25.98%
Other Long-Term Liabilities $779.0M $1.012B
YoY Change -23.02% -7.24%
Total Long-Term Liabilities $8.502B $9.332B
YoY Change -8.89% 21.27%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.969B $7.100B
Total Long-Term Liabilities $8.502B $9.332B
Total Liabilities $16.47B $16.43B
YoY Change 0.24% 13.76%
SHAREHOLDERS EQUITY
Retained Earnings $23.07B $21.49B
YoY Change 7.34% 7.32%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $6.104B $5.559B
YoY Change 9.8% 75.81%
Treasury Stock Shares
Shareholders Equity $24.17B $22.90B
YoY Change
Total Liabilities & Shareholders Equity $40.64B $39.33B
YoY Change 3.33% 1.38%

Cashflow Statement

Concept 2017 Q3 2016 Q3
OPERATING ACTIVITIES
Net Income $1.329B $1.424B
YoY Change -6.67% 17.11%
Depreciation, Depletion And Amortization $472.0M $442.0M
YoY Change 6.79% 10.78%
Cash From Operating Activities $1.449B $1.429B
YoY Change 1.4% 11.55%
INVESTING ACTIVITIES
Capital Expenditures -$437.0M -$450.0M
YoY Change -2.89% 39.32%
Acquisitions
YoY Change
Other Investing Activities -$48.00M $1.000M
YoY Change -4900.0% -101.82%
Cash From Investing Activities -$485.0M -$449.0M
YoY Change 8.02% 18.78%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.069B -1.045B
YoY Change 2.3% 61.27%
NET CHANGE
Cash From Operating Activities 1.449B 1.429B
Cash From Investing Activities -485.0M -449.0M
Cash From Financing Activities -1.069B -1.045B
Net Change In Cash -105.0M -65.00M
YoY Change 61.54% -125.49%
FREE CASH FLOW
Cash From Operating Activities $1.449B $1.429B
Capital Expenditures -$437.0M -$450.0M
Free Cash Flow $1.886B $1.879B
YoY Change 0.37% 17.14%

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us-gaap Payments To Acquire Property Plant And Equipment
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us-gaap Proceeds From Sale Of Property Plant And Equipment
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us-gaap Proceeds From Sale Of Treasury Stock
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us-gaap Proceeds From Sale Of Treasury Stock
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us-gaap Loss Contingency Disclosures
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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;">Contingencies</font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Litigation</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In the normal course of our business, various claims and lawsuits have been filed or are pending against us. Most of these claims and lawsuits are covered by insurance and the maximum amount of our liability, net of any insurance recoverables, is typically limited to our self-insurance retention levels. We believe the ultimate outcome of these claims and lawsuits will not have a material impact on our consolidated financial statements. </font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Contingent Obligation &#8211; Lease Out and Lease Back Type Transaction</font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">At </font><font style="font-family:inherit;font-size:10pt;">August&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;">, we had an estimated contingent obligation of </font><font style="font-family:inherit;font-size:10pt;">$122 million</font><font style="font-family:inherit;font-size:10pt;">. At the inception of the lease, we paid the aggregate of the net present value of the obligation to a group of major financial institutions, who agreed to act as payment undertakers and directly pay this obligation. As a result, this contingent obligation is considered extinguished and neither the funds nor the contingent obligation have been included in our Consolidated Balance Sheets. In January 2016, we exercised our option to terminate, at no cost, this transaction as of January 2, 2018.</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Contingent Obligations &#8211; Indemnifications</font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Some of the debt contracts we enter into include indemnification provisions obligating us to make payments to the counterparty if certain events occur. These contingencies generally relate to changes in taxes or changes in laws which increase our lender&#8217;s costs. There are no stated or notional amounts included in the indemnification clauses, and we are not able to estimate the maximum potential amount of future payments, if any, under these indemnification clauses.</font></div></div>

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