2024 Q3 Form 10-K Financial Statement

#000001673224000130 Filed on September 19, 2024

View on sec.gov

Income Statement

Concept 2024 Q3 2024 2023
Revenue $2.293B $9.636B $9.357B
YoY Change 10.88% 2.98% 9.29%
Cost Of Revenue $1.574B $6.597B $6.422B
YoY Change 11.95% 2.73% 8.3%
Gross Profit $719.0M $3.039B $2.935B
YoY Change 8.61% 3.54% 11.51%
Gross Profit Margin 31.36% 31.54% 31.37%
Selling, General & Admin $352.0M $1.451B $1.436B
YoY Change -1.68% 1.04% 7.97%
% of Gross Profit 48.96% 47.75% 48.93%
Research & Development $26.00M $97.00M $89.00M
YoY Change 4.0% 8.99% 2.3%
% of Gross Profit 3.62% 3.19% 3.03%
Depreciation & Amortization $113.0M $411.0M $387.0M
YoY Change 9.71% 6.2% 14.84%
% of Gross Profit 15.72% 13.52% 13.19%
Operating Expenses $430.0M $1.645B $1.539B
YoY Change 20.79% 6.89% 3.85%
Operating Profit $289.0M $1.394B $1.396B
YoY Change -5.56% -0.14% 21.39%
Interest Expense -$110.0M -$265.0M -$184.0M
YoY Change 134.04% 44.02% -2.13%
% of Operating Profit -38.06% -19.01% -13.18%
Other Income/Expense, Net -$261.0M -$32.00M
YoY Change 715.63% 52.38%
Pretax Income -$6.000M $757.0M $1.128B
YoY Change -102.67% -32.89% 15.69%
Income Tax -$3.000M $190.0M $270.0M
% Of Pretax Income 25.1% 23.94%
Net Earnings -$3.000M $567.0M $858.0M
YoY Change -101.78% -33.92% 13.34%
Net Earnings / Revenue -0.13% 5.88% 9.17%
Basic Earnings Per Share $1.90 $2.87
Diluted Earnings Per Share -$0.01 $1.89 $2.85
COMMON SHARES
Basic Shares Outstanding 298.1M shares 298.0M shares 299.0M shares
Diluted Shares Outstanding 300.0M shares 301.0M shares

Balance Sheet

Concept 2024 Q3 2024 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $108.0M $108.0M $189.0M
YoY Change -42.86% -42.86% 73.39%
Cash & Equivalents $108.0M $108.0M $189.0M
Short-Term Investments
Other Short-Term Assets $66.00M $66.00M $52.00M
YoY Change 26.92% 26.92% -97.2%
Inventory $1.386B $1.386B $1.291B
Prepaid Expenses
Receivables $587.0M $587.0M $494.0M
Other Receivables $0.00 $43.00M $35.00M
Total Short-Term Assets $2.190B $2.190B $2.061B
YoY Change 6.26% 6.26% 4.99%
LONG-TERM ASSETS
Property, Plant & Equipment $2.698B $3.031B $2.673B
YoY Change 12.51% 13.39% 14.08%
Goodwill $5.077B
YoY Change 28.05%
Intangibles $4.716B
YoY Change 50.1%
Long-Term Investments
YoY Change
Other Assets $554.0M $221.0M $217.0M
YoY Change 12.6% 1.84% -46.94%
Total Long-Term Assets $13.05B $13.05B $9.997B
YoY Change 30.49% 30.49% 0.68%
TOTAL ASSETS
Total Short-Term Assets $2.190B $2.190B $2.061B
Total Long-Term Assets $13.05B $13.05B $9.997B
Total Assets $15.24B $15.24B $12.06B
YoY Change 26.35% 26.35% 1.4%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.311B $1.311B $1.306B
YoY Change 0.38% 0.38% -2.1%
Accrued Expenses $720.0M $704.0M $586.0M
YoY Change 21.62% 20.14% -0.17%
Deferred Revenue
YoY Change
Short-Term Debt $1.398B $1.398B $178.0M
YoY Change 685.39% 685.39% -24.26%
Long-Term Debt Due $1.150B $25.00M $13.00M
YoY Change 92.31% -97.75%
Total Short-Term Liabilities $3.576B $3.576B $2.222B
YoY Change 60.94% 60.94% -23.01%
LONG-TERM LIABILITIES
Long-Term Debt $5.761B $5.761B $4.498B
YoY Change 28.08% 28.08% 12.56%
Other Long-Term Liabilities $676.0M $676.0M $608.0M
YoY Change 11.18% 11.18% -63.74%
Total Long-Term Liabilities $676.0M $6.437B $5.106B
YoY Change 11.18% 26.07% -9.99%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.576B $3.576B $2.222B
Total Long-Term Liabilities $676.0M $6.437B $5.106B
Total Liabilities $11.44B $11.44B $8.397B
YoY Change 36.26% 36.25% -1.89%
SHAREHOLDERS EQUITY
Retained Earnings $4.569B
YoY Change 2.65%
Common Stock $449.0M
YoY Change 3.94%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.794B $3.794B $3.661B
YoY Change
Total Liabilities & Shareholders Equity $15.24B $15.24B $12.06B
YoY Change 26.35% 26.35% 1.4%

Cashflow Statement

Concept 2024 Q3 2024 2023
OPERATING ACTIVITIES
Net Income -$3.000M $567.0M $858.0M
YoY Change -101.78% -33.92% 13.34%
Depreciation, Depletion And Amortization $113.0M $411.0M $387.0M
YoY Change 9.71% 6.2% 14.84%
Cash From Operating Activities $288.0M $1.185B $1.143B
YoY Change 28.0% 3.67% -3.22%
INVESTING ACTIVITIES
Capital Expenditures $141.0M $517.0M $370.0M
YoY Change 24.78% 39.73% -252.89%
Acquisitions $2.617B $0.00
YoY Change
Other Investing Activities $0.00 -$2.611B $30.00M
YoY Change -100.0% -8803.33% 150.0%
Cash From Investing Activities -$141.0M -$3.128B -$340.0M
YoY Change 98.59% 820.0% 47.83%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$19.00M -$65.00M -$120.0M
YoY Change 1800.0% -45.83% -26.83%
Debt Paid & Issued, Net $100.0M $566.0M
YoY Change -82.33%
Cash From Financing Activities -145.0M 1.863B -723.0M
YoY Change -22.87% -357.68% -20.55%
NET CHANGE
Cash From Operating Activities 288.0M 1.185B 1.143B
Cash From Investing Activities -141.0M -3.128B -340.0M
Cash From Financing Activities -145.0M 1.863B -723.0M
Net Change In Cash 2.000M -80.00M 80.00M
YoY Change -105.88% -200.0% 95.12%
FREE CASH FLOW
Cash From Operating Activities $288.0M $1.185B $1.143B
Capital Expenditures $141.0M $517.0M $370.0M
Free Cash Flow $147.0M $668.0M $773.0M
YoY Change 31.25% -13.58% -45.68%

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CY2024 us-gaap Proceeds From Issuance Of Long Term Debt
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CY2024 us-gaap Repayments Of Long Term Debt
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CY2024 us-gaap Payments Of Dividends Common Stock
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CY2024 us-gaap Payments For Repurchase Of Common Stock
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CY2024 us-gaap Payments To Acquire Intangible Assets
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CY2023 us-gaap Payments To Acquire Intangible Assets
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CY2022 us-gaap Payments To Acquire Intangible Assets
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CY2022 us-gaap Proceeds From Sale Of Intangible Assets
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CY2024 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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CY2023 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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CY2022 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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CY2024 us-gaap Proceeds From Divestiture Of Businesses
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CY2023 us-gaap Proceeds From Divestiture Of Businesses
ProceedsFromDivestitureOfBusinesses
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CY2022 us-gaap Proceeds From Divestiture Of Businesses
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CY2024 us-gaap Payments For Proceeds From Other Investing Activities
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CY2024 us-gaap Net Cash Provided By Used In Investing Activities
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CY2024 us-gaap Proceeds From Short Term Debt
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CY2023 us-gaap Proceeds From Short Term Debt
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CY2024 us-gaap Repayments Of Short Term Debt
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CY2024 us-gaap Proceeds From Issuance Of Long Term Debt
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CY2022 us-gaap Proceeds From Issuance Of Long Term Debt
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CY2024 us-gaap Repayments Of Long Term Debt
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CY2024 us-gaap Payments For Repurchase Of Common Stock
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CY2024 us-gaap Proceeds From Stock Options Exercised
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CY2024 us-gaap Payments Related To Tax Withholding For Share Based Compensation
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CY2022 us-gaap Payments Related To Tax Withholding For Share Based Compensation
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CY2024 us-gaap Payments Of Debt Extinguishment Costs
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CY2023 us-gaap Payments Of Debt Extinguishment Costs
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CY2022 us-gaap Payments Of Debt Extinguishment Costs
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CY2024 us-gaap Payments Of Debt Issuance Costs
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CY2023 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
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CY2024 us-gaap Proceeds From Payments For Other Financing Activities
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CY2023 us-gaap Proceeds From Payments For Other Financing Activities
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CY2022 us-gaap Proceeds From Payments For Other Financing Activities
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CY2024 us-gaap Net Cash Provided By Used In Financing Activities
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CY2024 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2023 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
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CY2024 us-gaap Proceeds From Stock Options Exercised
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CY2023 us-gaap Proceeds From Stock Options Exercised
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CY2022 us-gaap Proceeds From Stock Options Exercised
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CY2024 us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
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CY2023 us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
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CY2022 us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
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CY2024 us-gaap Payments Of Debt Extinguishment Costs
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CY2023 us-gaap Payments Of Debt Extinguishment Costs
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CY2022 us-gaap Payments Of Debt Extinguishment Costs
PaymentsOfDebtExtinguishmentCosts
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CY2024 us-gaap Payments Of Debt Issuance Costs
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CY2023 us-gaap Payments Of Debt Issuance Costs
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CY2022 us-gaap Payments Of Debt Issuance Costs
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CY2024 us-gaap Proceeds From Payments For Other Financing Activities
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CY2023 us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
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CY2022 us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
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CY2024 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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CY2023 us-gaap Net Cash Provided By Used In Financing Activities
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CY2022 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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CY2024 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2023 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2022 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2024 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2023 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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80000000 usd
CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
40000000 usd
CY2023Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
69000000 usd
CY2024Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
108000000 usd
CY2023Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
189000000 usd
CY2022Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2021Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
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CY2022 us-gaap Profit Loss
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CY2022 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
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CY2022 us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
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CY2022 us-gaap Dividends Common Stock Cash
DividendsCommonStockCash
451000000 usd
CY2022 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
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CY2022Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
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CY2023 us-gaap Profit Loss
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CY2023 us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
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CY2023 us-gaap Dividends Common Stock Cash
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CY2023 us-gaap Stock Issued During Period Value Share Based Compensation
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CY2024 us-gaap Profit Loss
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CY2024 us-gaap Other Comprehensive Income Loss Net Of Tax
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CY2024 us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
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CY2024 us-gaap Dividends Common Stock Cash
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CY2024 us-gaap Business Combination Consideration Transferred Equity Interests Issued And Issuable
BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable
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CY2024 us-gaap Treasury Stock Value Acquired Cost Method
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CY2024 us-gaap Treasury Stock Value Acquired Cost Method
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CY2024 us-gaap Stock Issued During Period Value Share Based Compensation
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CY2023 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2022 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2024 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
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CY2023 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
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CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
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CY2023Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2024Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2023Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2022Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2021Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
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CY2022 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
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CY2022 us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
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CY2022 us-gaap Dividends Common Stock Cash
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CY2022 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
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CY2023 us-gaap Other Comprehensive Income Loss Net Of Tax
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CY2023 us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
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CY2023 us-gaap Dividends Common Stock Cash
DividendsCommonStockCash
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CY2023 us-gaap Treasury Stock Value Acquired Cost Method
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CY2023 us-gaap Stock Issued During Period Value Share Based Compensation
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CY2023Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
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CY2024 us-gaap Profit Loss
ProfitLoss
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CY2024 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
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CY2024 us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
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CY2024 us-gaap Dividends Common Stock Cash
DividendsCommonStockCash
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CY2024 us-gaap Business Combination Consideration Transferred Equity Interests Issued And Issuable
BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable
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CY2024 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
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CY2024 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
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CY2024 us-gaap Stock Issued During Period Value Share Based Compensation
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CY2024Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2023 cpb Fiscal Period Number Of Weeks
FiscalPeriodNumberOfWeeks
52
CY2024 cpb Fiscal Period Number Of Weeks
FiscalPeriodNumberOfWeeks
52
CY2022 cpb Fiscal Period Number Of Weeks
FiscalPeriodNumberOfWeeks
52
CY2024 us-gaap Use Of Estimates
UseOfEstimates
<div style="margin-bottom:5pt;margin-top:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Use of Estimates</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> — Generally accepted accounting principles require management to make estimates and assumptions that affect assets, liabilities, revenues and expenses. Actual results could differ from those estimates.</span></div>
CY2024Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
3796000000 usd
CY2023 cpb Fiscal Period Number Of Weeks
FiscalPeriodNumberOfWeeks
52
CY2024 cpb Fiscal Period Number Of Weeks
FiscalPeriodNumberOfWeeks
52
CY2022 cpb Fiscal Period Number Of Weeks
FiscalPeriodNumberOfWeeks
52
CY2024 us-gaap Use Of Estimates
UseOfEstimates
<div style="margin-bottom:5pt;margin-top:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Use of Estimates</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> — Generally accepted accounting principles require management to make estimates and assumptions that affect assets, liabilities, revenues and expenses. Actual results could differ from those estimates.</span></div>
CY2024 us-gaap Derivatives Reporting Of Derivative Activity
DerivativesReportingOfDerivativeActivity
<div style="margin-bottom:5pt;margin-top:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Derivative Financial Instruments</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> — We use derivative financial instruments primarily for purposes of hedging exposures to fluctuations in foreign currency exchange rates, interest rates, commodities and equity-linked employee benefit obligations. We enter into these derivative contracts for periods consistent with the related underlying exposures, and the contracts do not constitute positions independent of those exposures. We do not enter into derivative contracts for speculative purposes and do not use leveraged instruments. Our derivative programs include strategies that qualify and strategies that do not qualify for hedge accounting treatment. To qualify for hedge accounting, the hedging relationship, both at inception of the hedge and on an ongoing basis, is expected to be highly effective in achieving offsetting changes in the fair value of the hedged risk during the period that the hedge is designated. </span></div><div style="margin-bottom:5pt;margin-top:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">All derivatives are recognized on the balance sheet at fair value. For derivatives that qualify for hedge accounting, we designate the derivative as a hedge of the fair value of a recognized asset or liability or a firm commitment (fair-value hedge) or a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (cash-flow hedge). Some derivatives may also be considered natural hedging instruments (changes in fair value act as economic offsets to changes in fair value of the underlying hedged item) and are not designated for hedge accounting.</span></div><div style="margin-bottom:5pt;margin-top:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Changes in the fair value on the portion of the derivative included in the assessment of hedge effectiveness of a fair-value hedge, along with the gain or loss on the underlying hedged asset or liability (including losses or gains on firm commitments), are recorded in current-period earnings. Changes in the fair value on the portion of the derivative included in the assessment of hedge effectiveness of cash-flow hedges are recorded in other comprehensive income (loss), until earnings are affected by the variability of cash flows. For derivatives that are designated and qualify as hedging instruments, the initial fair value of hedge components excluded from the assessment of effectiveness is recognized in earnings under a systematic and rational method over the life of the hedging instrument and is presented in the same statement of earnings line item as the earnings effect of the hedged item. Any difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and the amounts recognized in earnings is recorded as a component of other comprehensive income (loss). Changes in the fair value of derivatives that are not designated for hedge accounting are recognized in current-period earnings.</span></div><div style="margin-bottom:5pt;margin-top:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Cash flows from derivative contracts are included in Net cash provided by operating activities.</span></div>
CY2024 us-gaap Derivatives Reporting Of Derivative Activity
DerivativesReportingOfDerivativeActivity
<div style="margin-bottom:5pt;margin-top:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Derivative Financial Instruments</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> — We use derivative financial instruments primarily for purposes of hedging exposures to fluctuations in foreign currency exchange rates, interest rates, commodities and equity-linked employee benefit obligations. We enter into these derivative contracts for periods consistent with the related underlying exposures, and the contracts do not constitute positions independent of those exposures. We do not enter into derivative contracts for speculative purposes and do not use leveraged instruments. Our derivative programs include strategies that qualify and strategies that do not qualify for hedge accounting treatment. To qualify for hedge accounting, the hedging relationship, both at inception of the hedge and on an ongoing basis, is expected to be highly effective in achieving offsetting changes in the fair value of the hedged risk during the period that the hedge is designated. </span></div><div style="margin-bottom:5pt;margin-top:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">All derivatives are recognized on the balance sheet at fair value. For derivatives that qualify for hedge accounting, we designate the derivative as a hedge of the fair value of a recognized asset or liability or a firm commitment (fair-value hedge) or a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (cash-flow hedge). Some derivatives may also be considered natural hedging instruments (changes in fair value act as economic offsets to changes in fair value of the underlying hedged item) and are not designated for hedge accounting.</span></div><div style="margin-bottom:5pt;margin-top:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Changes in the fair value on the portion of the derivative included in the assessment of hedge effectiveness of a fair-value hedge, along with the gain or loss on the underlying hedged asset or liability (including losses or gains on firm commitments), are recorded in current-period earnings. Changes in the fair value on the portion of the derivative included in the assessment of hedge effectiveness of cash-flow hedges are recorded in other comprehensive income (loss), until earnings are affected by the variability of cash flows. For derivatives that are designated and qualify as hedging instruments, the initial fair value of hedge components excluded from the assessment of effectiveness is recognized in earnings under a systematic and rational method over the life of the hedging instrument and is presented in the same statement of earnings line item as the earnings effect of the hedged item. Any difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and the amounts recognized in earnings is recorded as a component of other comprehensive income (loss). Changes in the fair value of derivatives that are not designated for hedge accounting are recognized in current-period earnings.</span></div><div style="margin-bottom:5pt;margin-top:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Cash flows from derivative contracts are included in Net cash provided by operating activities.</span></div>
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