2017 Q2 Form 10-Q Financial Statement

#000110852417000012 Filed on May 22, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2016 Q2
Revenue $2.397B $1.917B
YoY Change 25.07% 26.83%
Cost Of Revenue $651.0M $497.0M
YoY Change 30.99% 30.17%
Gross Profit $1.746B $1.420B
YoY Change 22.99% 25.7%
Gross Profit Margin 72.84% 74.07%
Selling, General & Admin $1.366B $1.107B
YoY Change 23.43% 21.25%
% of Gross Profit 78.24% 77.95%
Research & Development $376.0M $261.0M
YoY Change 44.08% 17.49%
% of Gross Profit 21.53% 18.38%
Depreciation & Amortization $185.0M $132.8M
YoY Change 39.31% 3.83%
% of Gross Profit 10.6% 9.35%
Operating Expenses $1.742B $1.368B
YoY Change 27.37% 24.53%
Operating Profit $4.000M $51.99M
YoY Change -92.31% 67.13%
Interest Expense $22.00M $22.01M
YoY Change -0.05% 32.0%
% of Operating Profit 550.0% 42.34%
Other Income/Expense, Net $0.00 -$13.81M
YoY Change -100.0% 19.02%
Pretax Income -$10.00M $37.16M
YoY Change -126.91% 105.58%
Income Tax -$11.00M -$1.604M
% Of Pretax Income -4.32%
Net Earnings $1.000M $38.76M
YoY Change -97.42% 847.19%
Net Earnings / Revenue 0.04% 2.02%
Basic Earnings Per Share $0.00 $0.06
Diluted Earnings Per Share $0.00 $0.06
COMMON SHARES
Basic Shares Outstanding 706.0M shares 688.0M shares
Diluted Shares Outstanding 722.0M shares 700.0M shares

Balance Sheet

Concept 2017 Q2 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.220B $2.031B
YoY Change 58.51% 99.33%
Cash & Equivalents $2.025B $1.799B
Short-Term Investments $1.195B $232.1M
Other Short-Term Assets $711.0M $523.0M
YoY Change 35.95% -17.51%
Inventory
Prepaid Expenses $344.8M $254.2M
Receivables $1.440B $1.193B
Other Receivables $34.00M $28.00M
Total Short-Term Assets $5.404B $3.775B
YoY Change 43.18% 44.91%
LONG-TERM ASSETS
Property, Plant & Equipment $1.846B $1.711B
YoY Change 7.88% -1.47%
Goodwill $7.290B $4.130B
YoY Change 76.53% 8.92%
Intangibles $1.041B
YoY Change
Long-Term Investments $639.0M $2.205B
YoY Change -71.02% 80.44%
Other Assets $475.2M $409.2M
YoY Change 16.14% -45.76%
Total Long-Term Assets $11.65B $9.043B
YoY Change 28.88% 16.52%
TOTAL ASSETS
Total Short-Term Assets $5.404B $3.775B
Total Long-Term Assets $11.65B $9.043B
Total Assets $17.06B $12.82B
YoY Change 33.09% 23.65%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $128.1M $54.58M
YoY Change 134.62% -9.37%
Accrued Expenses $1.308B $1.013B
YoY Change 29.12% 18.48%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $1.143B $18.00M
YoY Change 6250.0%
Total Short-Term Liabilities $7.626B $5.085B
YoY Change 49.96% 28.38%
LONG-TERM LIABILITIES
Long-Term Debt $1.392B $2.047B
YoY Change -32.0% 0.39%
Other Long-Term Liabilities $802.7M $839.7M
YoY Change -4.41% -3.49%
Total Long-Term Liabilities $802.7M $839.7M
YoY Change -4.41% -3.49%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.626B $5.085B
Total Long-Term Liabilities $802.7M $839.7M
Total Liabilities $9.124B $7.233B
YoY Change 26.15% 17.98%
SHAREHOLDERS EQUITY
Retained Earnings -$474.1M -$605.8M
YoY Change -21.73% 0.67%
Common Stock $8.399B $6.219B
YoY Change 35.06% 27.82%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $7.934B $5.584B
YoY Change
Total Liabilities & Shareholders Equity $17.06B $12.82B
YoY Change 33.09% 23.65%

Cashflow Statement

Concept 2017 Q2 2016 Q2
OPERATING ACTIVITIES
Net Income $1.000M $38.76M
YoY Change -97.42% 847.19%
Depreciation, Depletion And Amortization $185.0M $132.8M
YoY Change 39.31% 3.83%
Cash From Operating Activities $1.230B $1.051B
YoY Change 17.02% 42.99%
INVESTING ACTIVITIES
Capital Expenditures $157.0M $83.30M
YoY Change 88.47% 17.18%
Acquisitions $20.00M $1.799M
YoY Change 1011.73% -85.57%
Other Investing Activities -$611.0M -$367.0M
YoY Change 66.49% 824.43%
Cash From Investing Activities -$768.0M -$450.3M
YoY Change 70.56% -16.01%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$49.00M $39.17M
YoY Change -225.09% -124.21%
NET CHANGE
Cash From Operating Activities $1.230B $1.051B
Cash From Investing Activities -$768.0M -$450.3M
Cash From Financing Activities -$49.00M $39.17M
Net Change In Cash $413.0M $640.0M
YoY Change -35.46% 1622.72%
FREE CASH FLOW
Cash From Operating Activities $1.230B $1.051B
Capital Expenditures $157.0M $83.30M
Free Cash Flow $1.073B $967.8M
YoY Change 10.87% 45.75%

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3850000 USD
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54.14
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28600000 USD
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124700000 USD
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357500000 USD
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ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
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CY2017Q2 us-gaap Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Outstanding Options
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27839298 shares
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357546000 USD
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SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageRemainingContractualTerm1
P4Y1M6D
CY2017Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
P5Y0M26D
CY2017Q2 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Exercisable Options Weighted Average Exercise Price1
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1
54.14
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SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1
62.46
CY2017Q2 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Outstanding Options Weighted Average Remaining Contractual Term2
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2
P5Y2M12D
CY2017Q2 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
2625463 shares
CY2017Q1 us-gaap Stockholders Equity
StockholdersEquity
7500127000 USD
CY2017Q2 us-gaap Stockholders Equity
StockholdersEquity
7934488000 USD
CY2017Q1 us-gaap Taxes Payable Current
TaxesPayableCurrent
239699000 USD
CY2017Q2 us-gaap Taxes Payable Current
TaxesPayableCurrent
192434000 USD
CY2016Q2 us-gaap Technology Services Revenue
TechnologyServicesRevenue
141110000 USD
CY2017Q2 us-gaap Technology Services Revenue
TechnologyServicesRevenue
186671000 USD
CY2016Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
686799000 shares
CY2017Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
706174000 shares
CY2016Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
677514000 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
706174000 shares
CY2017Q2 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Concentrations of Credit Risk and Significant Customers</font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. In addition, in connection with the Company's </font><font style="font-family:inherit;font-size:10pt;">0.25%</font><font style="font-family:inherit;font-size:10pt;"> Senior Notes (as defined in Note 8 "Debt"), the Company entered into convertible note hedge transactions with respect to its common stock which are exposed to concentrations of credit risk. Collateral is not required for accounts receivable or the note hedge transactions. The Company maintains an allowance for its doubtful accounts receivable. This allowance is based upon historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated with delinquent accounts. Receivables are written-off and charged against its recorded allowance when the Company has exhausted collection efforts without success.</font></div></div>
CY2017Q2 us-gaap Fiscal Period
FiscalPeriod
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Fiscal Year</font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s fiscal year ends on January&#160;31. References to fiscal 2018, for example, refer to the fiscal year ending </font><font style="font-family:inherit;font-size:10pt;">January&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;">.</font></div></div>
CY2017Q2 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Reclassifications</font></div><div style="line-height:120%;padding-top:12px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain reclassifications to fiscal 2017 balances were made to conform to the current period presentation in the consolidated balance sheets and consolidated statement of operations. These reclassifications include cost of revenues professional services and other, cost of revenues subscription and support, deferred revenue and deferred revenue, noncurrent. </font></div></div>
CY2017Q2 us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Deferred Revenue</font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription agreements. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription services described above and is recognized as the revenue recognition criteria are met. The Company generally invoices customers in annual installments. The deferred revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size and new business linearity within the quarter.</font></div><div style="line-height:120%;padding-top:18px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;"></font></div></div>
CY2017Q2 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company&#8217;s consolidated financial statements and notes thereto.</font></div><div style="line-height:120%;padding-top:12px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Significant estimates and assumptions made by management include the determination of:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:36px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;padding-left:36px;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:-36px;"><font style="font-family:inherit;font-size:10pt;">the best estimate of selling price of the deliverables included in multiple deliverable revenue arrangements;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:36px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;padding-left:36px;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:-36px;"><font style="font-family:inherit;font-size:10pt;">the fair value of assets acquired and liabilities assumed for business combinations;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:36px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;padding-left:36px;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:-36px;"><font style="font-family:inherit;font-size:10pt;">the recognition, measurement and valuation of current and deferred income taxes;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:36px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;padding-left:36px;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:-36px;"><font style="font-family:inherit;font-size:10pt;">the fair value of certain stock awards issued; </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:36px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;padding-left:36px;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:-36px;"><font style="font-family:inherit;font-size:10pt;">the useful lives of intangible assets, property and equipment and building and structural components; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:36px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;padding-left:36px;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;text-indent:-36px;"><font style="font-family:inherit;font-size:10pt;">the valuation of strategic investments and the determination of other-than-temporary impairments.</font></div></td></tr></table><div style="line-height:120%;padding-top:12px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities. </font></div></div>

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