2016 Q1 Form 10-K Financial Statement

#000157199618000004 Filed on March 29, 2018

View on sec.gov

Income Statement

Concept 2016 Q1 2016 2015 Q1
Revenue $12.68B $50.91B $14.26B
YoY Change -11.09% -5.97%
Cost Of Revenue $10.43B $42.52B $11.91B
YoY Change -12.43% -6.02%
Gross Profit $2.254B $8.387B $2.356B
YoY Change -4.33% -5.72%
Gross Profit Margin 17.78% 16.47% 16.52%
Selling, General & Admin $2.001B $7.850B $2.232B
YoY Change -10.35% -5.33%
% of Gross Profit 88.78% 93.6% 94.74%
Research & Development $279.0M $1.051B $301.0M
YoY Change -7.31% 14.24%
% of Gross Profit 12.38% 12.53% 12.78%
Depreciation & Amortization $716.0M $2.872B $720.0M
YoY Change -0.56% -3.53%
% of Gross Profit 31.77% 34.24% 30.56%
Operating Expenses $2.280B $8.901B $2.533B
YoY Change -9.99% -3.38%
Operating Profit -$26.00M -$514.0M -$177.0M
YoY Change -85.31% 62.66%
Interest Expense $680.0M
YoY Change -15.74%
% of Operating Profit
Other Income/Expense, Net -$173.0M -$772.0M -$232.0M
YoY Change -25.43% -14.13%
Pretax Income -$198.0M -$1.286B -$409.0M
YoY Change -51.59% 5.84%
Income Tax -$30.00M -$118.0M -$63.00M
% Of Pretax Income
Net Earnings -$155.0M -$1.104B -$346.0M
YoY Change -55.2% -9.58%
Net Earnings / Revenue -1.22% -2.17% -2.43%
Basic Earnings Per Share
Diluted Earnings Per Share -$211.7K -$1.508M -$856.4K
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2016 Q1 2016 2015 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $6.322B $6.322B
YoY Change 17.12%
Cash & Equivalents $6.322B $6.322B $5.398B
Short-Term Investments $0.00 $0.00
Other Short-Term Assets $3.497B $7.830B
YoY Change 63.16%
Inventory $1.619B $1.619B
Prepaid Expenses $514.0M
Receivables $4.887B $4.887B
Other Receivables $2.915B $2.915B
Total Short-Term Assets $23.57B $23.57B
YoY Change 12.53%
LONG-TERM ASSETS
Property, Plant & Equipment $1.649B $1.649B
YoY Change -37.3%
Goodwill $8.406B $8.406B
YoY Change 0.0%
Intangibles $8.577B
YoY Change
Long-Term Investments $114.0M $114.0M
YoY Change 20.0%
Other Assets $626.0M $626.0M
YoY Change -9.14%
Total Long-Term Assets $21.55B $21.55B
YoY Change -20.9%
TOTAL ASSETS
Total Short-Term Assets $23.57B $23.57B
Total Long-Term Assets $21.55B $21.55B
Total Assets $45.12B $45.12B
YoY Change -6.37%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $12.88B $12.88B
YoY Change -4.15%
Accrued Expenses $4.217B $941.0M
YoY Change -36.93%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $2.981B $2.981B
YoY Change 2.05%
Total Short-Term Liabilities $25.31B $25.31B
YoY Change -0.15%
LONG-TERM LIABILITIES
Long-Term Debt $10.65B $10.65B
YoY Change -5.2%
Other Long-Term Liabilities $3.501B $6.651B
YoY Change -0.69%
Total Long-Term Liabilities $14.15B $17.30B
YoY Change -3.51%
TOTAL LIABILITIES
Total Short-Term Liabilities $25.31B $25.31B
Total Long-Term Liabilities $14.15B $17.30B
Total Liabilities $43.55B $43.55B
YoY Change -3.72%
SHAREHOLDERS EQUITY
Retained Earnings -$3.937B
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $0.00
YoY Change
Treasury Stock Shares
Shareholders Equity $1.466B $1.572B
YoY Change
Total Liabilities & Shareholders Equity $45.12B $45.12B
YoY Change -6.37%

Cashflow Statement

Concept 2016 Q1 2016 2015 Q1
OPERATING ACTIVITIES
Net Income -$155.0M -$1.104B -$346.0M
YoY Change -55.2% -9.58%
Depreciation, Depletion And Amortization $716.0M $2.872B $720.0M
YoY Change -0.56% -3.53%
Cash From Operating Activities $971.0M $2.162B $802.0M
YoY Change 21.07% -15.25%
INVESTING ACTIVITIES
Capital Expenditures -$142.0M $482.0M -$104.0M
YoY Change 36.54% 0.84%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities $19.00M $0.00 $38.00M
YoY Change -50.0%
Cash From Investing Activities -$123.0M -$321.0M -$66.00M
YoY Change 86.36% -9.58%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change
Debt Paid & Issued, Net $5.950B
YoY Change -1.7%
Cash From Financing Activities -175.0M -$496.0M -544.0M
YoY Change -67.83% -83.97%
NET CHANGE
Cash From Operating Activities 971.0M $2.162B 802.0M
Cash From Investing Activities -123.0M -$321.0M -66.00M
Cash From Financing Activities -175.0M -$496.0M -544.0M
Net Change In Cash 673.0M $1.345B 192.0M
YoY Change 250.52% -249.78%
FREE CASH FLOW
Cash From Operating Activities $971.0M $2.162B $802.0M
Capital Expenditures -$142.0M $482.0M -$104.0M
Free Cash Flow $1.113B $1.680B $906.0M
YoY Change 22.85% -18.96%

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125000000 USD
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CY2018 us-gaap Derivatives Methods Of Accounting Hedging Derivatives
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Derivative Instruments</font><font style="font-family:inherit;font-size:10pt;"> &#8212; The Company's derivative financial instruments consist primarily of foreign currency forward and purchased option contracts and interest rate swaps. The fair value of the portfolio is determined using valuation models based on market observable inputs, including interest rate curves, forward and spot prices for currencies, and implied volatilities. Credit risk is also factored into the fair value calculation of the Company's derivative instrument portfolio.</font></div></div><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;text-decoration:underline;">Derivative Instruments</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As part of its risk management strategy, the Company uses derivative instruments, primarily foreign currency forward and option contracts and interest rate swaps, to hedge certain foreign currency and interest rate exposures, respectively.</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%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company's objective is to offset gains and losses resulting from these exposures with gains and losses on the derivative contracts used to hedge the exposures, thereby reducing volatility of earnings and protecting the fair values of assets and liabilities. For derivatives designated as cash flow hedges, the Company assesses hedge effectiveness both at the onset of the hedge and at regular intervals throughout the life of the derivative and recognizes any ineffective portion of the hedge in earnings as a component of interest and other, net. </font></div></div>
CY2018 us-gaap Fiscal Period
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As a result of the EMC merger transaction completed on September 7, 2016, the Company's results of operations, comprehensive income (loss), and cash flows for the fiscal periods reflected in these Consolidated Financial Statements are not directly comparable as the results of the acquired businesses are only included in the consolidated results from September 7, 2016.</font></div></div><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company's fiscal year is the 52- or 53-week period ending on the Friday nearest January 31. The fiscal years ended </font><font style="font-family:inherit;font-size:10pt;">February&#160;2, 2018</font><font style="font-family:inherit;font-size:10pt;"> ("</font><font style="font-family:inherit;font-size:10pt;">Fiscal 2018</font><font style="font-family:inherit;font-size:10pt;">") and </font><font style="font-family:inherit;font-size:10pt;">January&#160;29, 2016</font><font style="font-family:inherit;font-size:10pt;"> ("</font><font style="font-family:inherit;font-size:10pt;">Fiscal 2016</font><font style="font-family:inherit;font-size:10pt;">") were 52-week periods. The fiscal year ended </font><font style="font-family:inherit;font-size:10pt;">February&#160;3, 2017</font><font style="font-family:inherit;font-size:10pt;"> ("</font><font style="font-family:inherit;font-size:10pt;">Fiscal 2017</font><font style="font-family:inherit;font-size:10pt;">") was a 53-week period.</font></div></div>
CY2018 us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Deferred revenue is recorded when billings have been generated or payments have been received for undelivered products or services, or in the situation where revenue recognition criteria have not been met. Deferred revenue represents amounts received in advance for extended warranty services, software maintenance, unearned license fees, and deferred profit on third-party software offerings. Deferred revenue is recognized on these items when the revenue recognition criteria are met, generally resulting in ratable recognition over the contract term. The Company also has deferred revenue related to undelivered hardware and professional services, consisting of installations and consulting engagements, which are recognized as the Company's obligations under the contract are completed.</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>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the accompanying Notes. Actual results could differ materially from those estimates.</font></div></div>

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