2015 Q4 Form 10-Q Financial Statement

#000122460815000046 Filed on November 03, 2015

View on sec.gov

Income Statement

Concept 2015 Q4 2015 Q3 2014 Q3
Revenue $969.6M $904.5M $967.0M
YoY Change -3.04% -6.46% -11.59%
Cost Of Revenue $582.1M $565.5M
YoY Change 2.94% -19.47%
Gross Profit $322.4M $401.5M
YoY Change -19.7% 2.53%
Gross Profit Margin 35.64% 41.52%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $785.1M $828.2M $790.7M
YoY Change -12.97% 4.74% -17.08%
Operating Profit -$505.8M -$389.2M
YoY Change 29.96% -30.75%
Interest Expense -$24.20M $23.90M $21.90M
YoY Change 10.0% 9.13% -15.12%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income $160.3M $52.40M $154.4M
YoY Change 111.2% -66.06% 34.97%
Income Tax $23.00M $18.60M $37.00M
% Of Pretax Income 14.35% 35.5% 23.96%
Net Earnings $137.3M $33.80M $117.4M
YoY Change 63.65% -71.21% -58.52%
Net Earnings / Revenue 14.16% 3.74% 12.14%
Basic Earnings Per Share $0.74 $0.18 $0.56
Diluted Earnings Per Share $0.73 $0.18 $0.54
COMMON SHARES
Basic Shares Outstanding 186.0M shares 190.3M shares 210.5M shares
Diluted Shares Outstanding 192.4M shares 215.5M shares

Balance Sheet

Concept 2015 Q4 2015 Q3 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $796.7M $613.8M $452.1M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $24.49B $24.55B $24.68B
YoY Change -1.69% -0.56% -9.65%
Other Assets $899.0M $862.0M $731.0M
YoY Change 18.45% 17.92% -40.13%
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $31.13B $31.01B $30.98B
YoY Change -0.1% 0.12% -8.67%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities
YoY Change
LONG-TERM LIABILITIES
Long-Term Debt $4.136B $3.911B $3.628B
YoY Change 15.82% 7.8% 317.49%
Other Long-Term Liabilities $708.0M $739.0M $704.0M
YoY Change 20.41% 4.97% -1.26%
Total Long-Term Liabilities $4.844B $4.650B $4.332B
YoY Change 16.47% 7.34% 173.83%
TOTAL LIABILITIES
Total Short-Term Liabilities
Total Long-Term Liabilities $4.844B $4.650B $4.332B
Total Liabilities $26.99B $26.84B $26.25B
YoY Change 1.96% 2.24% -9.88%
SHAREHOLDERS EQUITY
Retained Earnings $347.1M $222.9M $56.90M
YoY Change 170.12% 291.74% 95.53%
Common Stock $3.389B $3.438B $3.806B
YoY Change -9.26% -9.67% -7.7%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $4.139B $4.171B $4.722B
YoY Change
Total Liabilities & Shareholders Equity $31.13B $31.01B $30.98B
YoY Change -0.1% 0.12% -8.67%

Cashflow Statement

Concept 2015 Q4 2015 Q3 2014 Q3
OPERATING ACTIVITIES
Net Income $137.3M $33.80M $117.4M
YoY Change 63.65% -71.21% -58.52%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities $212.5M $204.9M $191.0M
YoY Change -13.51% 7.28% 4.83%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities -$611.5M $50.40M -$100.3M
YoY Change -6339.8% -150.25% -175.98%
Cash From Investing Activities -$611.5M $50.40M -$100.3M
YoY Change -6339.8% -150.25% -175.98%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 217.5M -95.40M -17.40M
YoY Change -326.56% 448.28% -92.0%
NET CHANGE
Cash From Operating Activities 212.5M 204.9M 191.0M
Cash From Investing Activities -611.5M 50.40M -100.3M
Cash From Financing Activities 217.5M -95.40M -17.40M
Net Change In Cash -181.5M 159.9M 73.30M
YoY Change -213.79% 118.14% -24.2%
FREE CASH FLOW
Cash From Operating Activities $212.5M $204.9M $191.0M
Capital Expenditures
Free Cash Flow
YoY Change

Facts In Submission

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us-gaap Depreciation Depletion And Amortization
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us-gaap Depreciation Depletion And Amortization
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us-gaap Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
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us-gaap Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
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us-gaap Discontinued Operation Provision For Loss Gain On Disposal Before Income Tax
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us-gaap Discontinued Operation Provision For Loss Gain On Disposal Before Income Tax
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us-gaap Discontinued Operation Tax Expense Benefit From Provision For Gain Loss On Disposal
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us-gaap Discontinued Operation Tax Expense Benefit From Provision For Gain Loss On Disposal
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us-gaap Disposal Group Including Discontinued Operation Revenue
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us-gaap Disposal Group Including Discontinued Operation Revenue
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us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Issues
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us-gaap Incremental Common Shares Attributable To Call Options And Warrants
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net
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us-gaap Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Policyholder Benefits And Claims Incurred Net
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us-gaap Policyholder Benefits And Claims Incurred Net
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us-gaap Revenues
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us-gaap Premiums Earned Net
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">LITIGATION AND OTHER LEGAL PROCEEDINGS</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Legal Proceedings</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company and its subsidiaries are involved in various legal actions in the normal course of business, in which claims for compensatory and punitive damages are asserted, some for substantial amounts.&#160;&#160;We recognize an estimated loss from these loss contingencies when we believe it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Some of the pending matters have been filed as purported class actions and some actions have been filed in certain jurisdictions that permit punitive damage awards that are disproportionate to the actual damages incurred.&#160;&#160;The amounts sought in certain of these actions are often large or indeterminate and the ultimate outcome of certain actions is difficult to predict.&#160;&#160;In the event of an adverse outcome in one or more of these matters, there is a possibility that the ultimate liability may be in excess of the liabilities we have established and could have a material adverse effect on our business, financial condition, results of operations and cash flows.&#160;&#160;In addition, the resolution of pending or future litigation may involve modifications to the terms of outstanding insurance policies or could impact the timing and amount of rate increases, which could adversely affect the future profitability of the related insurance policies.&#160;&#160;Based upon information presently available, and in light of legal, factual and other defenses available to the Company and its subsidiaries, the Company does not believe that it is probable that the ultimate liability from either pending or threatened legal actions, after consideration of existing loss provisions, will have a material adverse effect on the Company's consolidated financial condition, operating results or cash flows. However, given the inherent difficulty in predicting the outcome of legal proceedings, there exists the possibility that such legal actions could have a material adverse effect on the Company's consolidated financial condition, operating results or cash flows.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In addition to the inherent difficulty of predicting litigation outcomes, particularly those that will be decided by a jury, some matters purport to seek substantial or an unspecified amount of damages for unsubstantiated conduct spanning several years based on complex legal theories and damages models. The alleged damages typically are indeterminate or not factually supported in the complaint, and, in any event, the Company's experience indicates that monetary demands for damages often bear little relation to the ultimate loss. In some cases, plaintiffs are seeking to certify classes in the litigation and class certification either has been denied or is pending and we have filed oppositions to class certification or sought to decertify a prior class certification. In addition, for many of these cases: (i) there is uncertainty as to the outcome of pending appeals or motions; (ii) there are significant factual issues to be resolved; and/or (iii) there are novel legal issues presented. Accordingly, the Company cannot reasonably estimate the possible loss or range of loss in excess of amounts accrued, if any, or predict the timing of the eventual resolution of these matters.&#160;&#160;The Company reviews these matters on an ongoing basis.&#160;&#160;When assessing reasonably possible and probable outcomes, the Company bases its assessment on the expected ultimate outcome following all appeals.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Regulatory Examinations and Fines</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Insurance companies face significant risks related to regulatory investigations and actions.&#160;&#160;Regulatory investigations generally result from matters related to sales or underwriting practices, payment of contingent or other sales commissions, claim payments and procedures, product design, product disclosure, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, charging excessive or impermissible fees on products, procedures related to canceling policies, changing the way cost of insurance charges are calculated for certain life insurance products or recommending unsuitable products to customers.&#160;&#160;We are, in the ordinary course of our business, subject to various examinations, inquiries and information requests from state, federal and other authorities.&#160;&#160;The ultimate outcome of these regulatory actions (including the costs of complying with information requests and policy reviews) cannot be predicted with certainty.&#160;&#160;In the event of an unfavorable outcome in one or more of these matters, the ultimate liability may be in excess of liabilities we have established and we could suffer significant reputational harm as a result of these matters, which could also have a material adverse effect on our business, financial condition, results of operations or cash flows.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In August 2011, we were notified of an examination to be done on behalf of a number of states for the purpose of determining compliance with unclaimed property laws by the Company and its subsidiaries. &#160;Such examination has included inquiries related to the use of data available on the U.S. Social Security Administration's Death Master File to identify instances where benefits under life insurance policies, annuities and retained asset accounts are payable. We are continuing to provide information to the examiners in response to their requests. A total of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">38</font><font style="font-family:inherit;font-size:10pt;"> states and the District of Columbia are currently participating in this examination.</font></div></div>

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