2018 Q2 Form 10-Q Financial Statement

#000157199618000022 Filed on June 12, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q2
Revenue $21.36B $18.00B
YoY Change 18.64% 47.2%
Cost Of Revenue $15.48B $13.54B
YoY Change 14.29% 34.78%
Gross Profit $5.878B $4.457B
YoY Change 31.88% 99.24%
Gross Profit Margin 27.52% 24.76%
Selling, General & Admin $4.944B $4.596B
YoY Change 7.57% 122.24%
% of Gross Profit 84.11% 103.12%
Research & Development $1.087B $1.133B
YoY Change -4.06% 329.17%
% of Gross Profit 18.49% 25.42%
Depreciation & Amortization $1.914B $2.212B
YoY Change -13.47% 219.65%
% of Gross Profit 32.56% 49.63%
Operating Expenses $6.031B $5.729B
YoY Change 5.27% 145.67%
Operating Profit -$153.0M -$1.272B
YoY Change -87.97% 815.11%
Interest Expense -$529.0M -$587.0M
YoY Change -9.88% 199.49%
% of Operating Profit
Other Income/Expense, Net -$470.0M -$572.0M
YoY Change -17.83% 161.19%
Pretax Income -$600.0M -$1.844B
YoY Change -67.46% 415.08%
Income Tax -$85.00M -$641.0M
% Of Pretax Income
Net Earnings -$636.0M -$1.171B
YoY Change -45.69% -1461.63%
Net Earnings / Revenue -2.98% -6.51%
Basic Earnings Per Share
Diluted Earnings Per Share -$458.9K -$838.8K
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2018 Q2 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $17.73B $11.17B
YoY Change 58.64% 82.02%
Cash & Equivalents $15.32B $9.554B
Short-Term Investments $2.402B $1.620B
Other Short-Term Assets $6.049B $4.655B
YoY Change 29.95% 40.17%
Inventory $2.933B $2.466B
Prepaid Expenses
Receivables $10.56B $8.834B
Other Receivables $3.962B $3.255B
Total Short-Term Assets $41.23B $30.38B
YoY Change 35.7% 46.33%
LONG-TERM ASSETS
Property, Plant & Equipment $5.303B $5.438B
YoY Change -2.48% 222.92%
Goodwill $39.66B $38.93B
YoY Change 1.86% 297.37%
Intangibles $26.74B $33.28B
YoY Change -19.67% 284.2%
Long-Term Investments $3.943B $3.772B
YoY Change 4.53% 3634.65%
Other Assets $2.548B $1.492B
YoY Change 70.78% 119.41%
Total Long-Term Assets $81.99B $85.66B
YoY Change -4.28% 270.56%
TOTAL ASSETS
Total Short-Term Assets $41.23B $30.38B
Total Long-Term Assets $81.99B $85.66B
Total Assets $123.2B $116.0B
YoY Change 6.18% 164.45%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $18.53B $15.06B
YoY Change 23.04% 21.37%
Accrued Expenses $6.952B $6.376B
YoY Change 9.03% 52.06%
Deferred Revenue $11.50B
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $7.133B $4.842B
YoY Change 47.32% 96.43%
Total Short-Term Liabilities $44.11B $36.64B
YoY Change 20.41% 52.98%
LONG-TERM LIABILITIES
Long-Term Debt $44.77B $44.95B
YoY Change -0.4% 320.9%
Other Long-Term Liabilities $7.045B $8.435B
YoY Change -16.48% 177.83%
Total Long-Term Liabilities $51.82B $53.38B
YoY Change -2.94% 289.23%
TOTAL LIABILITIES
Total Short-Term Liabilities $44.11B $36.64B
Total Long-Term Liabilities $51.82B $53.38B
Total Liabilities $105.4B $98.35B
YoY Change 7.16% 133.35%
SHAREHOLDERS EQUITY
Retained Earnings -$7.438B -$6.859B
YoY Change 8.44% 76.64%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.477B $1.113B
YoY Change 32.7%
Treasury Stock Shares
Shareholders Equity $10.49B $11.53B
YoY Change
Total Liabilities & Shareholders Equity $123.2B $116.0B
YoY Change 6.18% 164.45%

Cashflow Statement

Concept 2018 Q2 2017 Q2
OPERATING ACTIVITIES
Net Income -$636.0M -$1.171B
YoY Change -45.69% -1461.63%
Depreciation, Depletion And Amortization $1.914B $2.212B
YoY Change -13.47% 219.65%
Cash From Operating Activities $1.159B $285.0M
YoY Change 306.67% -552.38%
INVESTING ACTIVITIES
Capital Expenditures $273.0M $245.0M
YoY Change 11.43% 166.3%
Acquisitions $0.00 $12.00M
YoY Change -100.0%
Other Investing Activities $254.0M $385.0M
YoY Change -34.03% 1103.13%
Cash From Investing Activities -$149.0M $51.00M
YoY Change -392.16% -185.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change
Debt Paid & Issued, Net $1.822B $3.116B
YoY Change -41.53% 199.33%
Cash From Financing Activities $543.0M -$187.0M
YoY Change -390.37% -51.68%
NET CHANGE
Cash From Operating Activities $1.159B $285.0M
Cash From Investing Activities -$149.0M $51.00M
Cash From Financing Activities $543.0M -$187.0M
Net Change In Cash $1.467B $143.0M
YoY Change 925.87% -128.04%
FREE CASH FLOW
Cash From Operating Activities $1.159B $285.0M
Capital Expenditures $273.0M $245.0M
Free Cash Flow $886.0M $40.00M
YoY Change 2115.0% -125.81%

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509000000 USD
CY2018Q1 us-gaap Restricted Cash Noncurrent
RestrictedCashNoncurrent
13000000 USD
CY2018Q2 us-gaap Restricted Cash Noncurrent
RestrictedCashNoncurrent
12000000 USD
CY2017Q2 us-gaap Standard Product Warranty Accrual Payments
StandardProductWarrantyAccrualPayments
237000000 USD
CY2018Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-6860000000 USD
CY2018Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-7438000000 USD
CY2018Q2 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
29000000000 USD
CY2018Q2 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod
P12M
CY2017Q2 us-gaap Sales Revenue Net
SalesRevenueNet
18000000000 USD
CY2018Q2 us-gaap Sales Revenue Net
SalesRevenueNet
21356000000 USD
CY2017Q2 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
4596000000 USD
CY2018Q2 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
4944000000 USD
CY2017Q2 us-gaap Share Based Compensation
ShareBasedCompensation
201000000 USD
CY2018Q2 us-gaap Share Based Compensation
ShareBasedCompensation
199000000 USD
CY2017Q1 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
604000000 USD
CY2017Q2 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
607000000 USD
CY2018Q1 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
539000000 USD
CY2018Q2 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
527000000 USD
CY2017Q2 us-gaap Standard Product Warranty Accrual Current
StandardProductWarrantyAccrualCurrent
420000000 USD
CY2018Q2 us-gaap Standard Product Warranty Accrual Current
StandardProductWarrantyAccrualCurrent
358000000 USD
CY2017Q2 us-gaap Standard Product Warranty Accrual Noncurrent
StandardProductWarrantyAccrualNoncurrent
187000000 USD
CY2018Q1 us-gaap Standard Product Warranty Accrual Noncurrent
StandardProductWarrantyAccrualNoncurrent
172000000 USD
CY2018Q2 us-gaap Standard Product Warranty Accrual Noncurrent
StandardProductWarrantyAccrualNoncurrent
169000000 USD
CY2018Q2 us-gaap Standard Product Warranty Accrual Payments
StandardProductWarrantyAccrualPayments
206000000 USD
CY2017Q2 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
-4000000 USD
CY2018Q2 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
-3000000 USD
CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
11719000000 USD
CY2018Q2 us-gaap Stockholders Equity
StockholdersEquity
10485000000 USD
CY2017Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
20578000000 USD
CY2017Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
19139000000 USD
CY2018Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
17485000000 USD
CY2018Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
16980000000 USD
CY2017Q2 us-gaap Stockholders Equity Other
StockholdersEquityOther
9000000 USD
CY2018Q1 us-gaap Temporary Equity Carrying Amount Attributable To Parent
TemporaryEquityCarryingAmountAttributableToParent
384000000 USD
CY2018Q2 us-gaap Temporary Equity Carrying Amount Attributable To Parent
TemporaryEquityCarryingAmountAttributableToParent
844000000 USD
CY2018Q1 us-gaap Treasury Stock Value
TreasuryStockValue
1440000000 USD
CY2018Q2 us-gaap Treasury Stock Value
TreasuryStockValue
1477000000 USD
CY2017Q2 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
361000000 USD
CY2018Q2 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
37000000 USD
CY2018Q2 us-gaap Derivatives Methods Of Accounting Hedging Derivatives
DerivativesMethodsOfAccountingHedgingDerivatives
<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. See </font><font style="font-family:inherit;font-size:10pt;">Note 7</font><font style="font-family:inherit;font-size:10pt;"> of the </font><font style="font-family:inherit;font-size:10pt;">Notes to the Condensed Consolidated Financial Statements</font><font style="font-family:inherit;font-size:10pt;"> for a description of the Company's derivative financial instrument activities.</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. The earnings effects of the derivative instruments are presented in the same income statement lines items as the earnings effects of the hedged items. 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.</font></div></div>
CY2018Q2 us-gaap Fiscal Period
FiscalPeriod
<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 year 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;">") was a 52-week period, and the fiscal year ending </font><font style="font-family:inherit;font-size:10pt;">February&#160;1, 2019</font><font style="font-family:inherit;font-size:10pt;"> ("</font><font style="font-family:inherit;font-size:10pt;">Fiscal 2019</font><font style="font-family:inherit;font-size:10pt;">") will be a 52-week period.</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>
CY2018Q2 us-gaap Use Of Estimates
UseOfEstimates
<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;">The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying Notes. Actual results could differ materially from those estimates. The results of operations, comprehensive income (loss), and cash flows for the&#160;three months ended </font><font style="font-family:inherit;font-size:10pt;">May&#160;4, 2018</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">May&#160;5, 2017</font><font style="font-family:inherit;font-size:10pt;">&#160;are not necessarily indicative of the results to be expected for the full fiscal year or for any other fiscal period.</font></div></div>

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