2015 Q2 Form 10-Q Financial Statement

#000119312515267928 Filed on July 29, 2015

View on sec.gov

Income Statement

Concept 2015 Q2 2014 Q2
Revenue $6.514B $6.024B
YoY Change 8.13% -1.91%
Cost Of Revenue $2.449B $2.412B
YoY Change 1.53% -0.29%
Gross Profit $4.066B $3.612B
YoY Change 12.57% -2.96%
Gross Profit Margin 62.42% 59.96%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $839.0M $810.0M
YoY Change 3.58% -15.18%
% of Gross Profit 20.63% 22.43%
Operating Expenses $2.938B $3.044B
YoY Change -3.48% 12.91%
Operating Profit $1.134B $842.0M
YoY Change 34.68% -16.22%
Interest Expense $145.0M $228.0M
YoY Change -36.4% -7.32%
% of Operating Profit 12.79% 27.08%
Other Income/Expense, Net -$172.0M -$8.000M
YoY Change 2050.0% -97.03%
Pretax Income $962.0M $834.0M
YoY Change 15.35% 13.32%
Income Tax $327.0M $277.0M
% Of Pretax Income 33.99% 33.21%
Net Earnings $633.0M $522.0M
YoY Change 21.26% 6.53%
Net Earnings / Revenue 9.72% 8.67%
Basic Earnings Per Share $0.74 $0.61
Diluted Earnings Per Share $0.74 $0.60
COMMON SHARES
Basic Shares Outstanding 863.0M shares 860.0M shares
Diluted Shares Outstanding 866.0M shares 864.0M shares

Balance Sheet

Concept 2015 Q2 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $6.014B $1.362B
YoY Change 341.56% 37.44%
Cash & Equivalents $6.014B $1.362B
Short-Term Investments
Other Short-Term Assets $654.0M $775.0M
YoY Change -15.61% 12.32%
Inventory $1.432B $1.450B
Prepaid Expenses
Receivables $3.227B $2.973B
Other Receivables $1.344B $1.005B
Total Short-Term Assets $15.43B $9.823B
YoY Change 57.03% 4.4%
LONG-TERM ASSETS
Property, Plant & Equipment $53.94B $51.75B
YoY Change 4.23% 12.51%
Goodwill $2.672B $2.674B
YoY Change -0.07% 1.87%
Intangibles
YoY Change
Long-Term Investments $607.0M $0.00
YoY Change -100.0%
Other Assets $1.388B $1.092B
YoY Change 27.11% -7.06%
Total Long-Term Assets $76.79B $73.83B
YoY Change 4.0% 6.99%
TOTAL ASSETS
Total Short-Term Assets $15.43B $9.823B
Total Long-Term Assets $76.79B $73.83B
Total Assets $92.21B $83.66B
YoY Change 10.23% 6.68%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.727B $2.633B
YoY Change 3.57% 19.14%
Accrued Expenses $1.366B $1.382B
YoY Change -1.16% 0.0%
Deferred Revenue
YoY Change
Short-Term Debt $543.0M $621.0M
YoY Change -12.56% -6.19%
Long-Term Debt Due $226.0M $2.047B
YoY Change -88.96% 0.79%
Total Short-Term Liabilities $6.526B $8.567B
YoY Change -23.82% 2.3%
LONG-TERM LIABILITIES
Long-Term Debt $25.22B $18.13B
YoY Change 39.08% 12.48%
Other Long-Term Liabilities $2.528B $2.133B
YoY Change 18.52% -19.05%
Total Long-Term Liabilities $27.75B $20.27B
YoY Change 36.92% 8.05%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.526B $8.567B
Total Long-Term Liabilities $27.75B $20.27B
Total Liabilities $67.14B $59.43B
YoY Change 12.99% 4.57%
SHAREHOLDERS EQUITY
Retained Earnings $11.70B $10.44B
YoY Change 12.16% 8.02%
Common Stock $16.76B $16.65B
YoY Change 0.62% -0.25%
Preferred Stock
YoY Change
Treasury Stock (at cost) $2.327B $2.327B
YoY Change 0.0% 0.0%
Treasury Stock Shares 35.00M shares 35.00M shares
Shareholders Equity $23.51B $22.85B
YoY Change
Total Liabilities & Shareholders Equity $92.21B $83.66B
YoY Change 10.23% 6.68%

Cashflow Statement

Concept 2015 Q2 2014 Q2
OPERATING ACTIVITIES
Net Income $633.0M $522.0M
YoY Change 21.26% 6.53%
Depreciation, Depletion And Amortization $839.0M $810.0M
YoY Change 3.58% -15.18%
Cash From Operating Activities $2.479B $1.586B
YoY Change 56.31% 7.23%
INVESTING ACTIVITIES
Capital Expenditures -$1.676B -$1.284B
YoY Change 30.53% 19.89%
Acquisitions
YoY Change
Other Investing Activities -$119.0M $108.0M
YoY Change -210.19% -1642.86%
Cash From Investing Activities -$1.795B -$1.176B
YoY Change 52.64% 9.09%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $1.870B
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 3.505B 38.00M
YoY Change 9123.68% -120.88%
NET CHANGE
Cash From Operating Activities 2.479B 1.586B
Cash From Investing Activities -1.795B -1.176B
Cash From Financing Activities 3.505B 38.00M
Net Change In Cash 4.189B 448.0M
YoY Change 835.04% 104.57%
FREE CASH FLOW
Cash From Operating Activities $2.479B $1.586B
Capital Expenditures -$1.676B -$1.284B
Free Cash Flow $4.155B $2.870B
YoY Change 44.77% 12.55%

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us-gaap Revenue From Related Parties
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us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">New Accounting Pronouncements (Exelon, Generation, ComEd, PECO and BGE)</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The following recently issued accounting standards are not yet required to be reflected in the combined financial statements of the Registrants.</font></div><div style="line-height:120%;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Simplifying the Measurement of Inventory</font></div><div style="line-height:120%;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In July 2015, the FASB issued authoritative guidance that requires inventory to be measured at the lower of cost or net realizable value. The new guidance defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This definition is consistent with existing authoritative guidance. Current guidance requires inventory to be measured at the lower of cost or market where market could be replacement cost, net realizable value or net realizable value less an approximately normal profit margin. The guidance is effective for periods beginning after December 15, 2016 with early adoption permitted. The guidance is required to be applied prospectively. The Registrants are currently assessing the impacts this guidance may have on their financial positions, results of operations, cash flows and disclosures as well as the potential to early adopt the guidance. </font></div><div style="line-height:120%;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share</font></div><div style="line-height:120%;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In May 2015, FASB issued authoritative guidance that removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. Investments measured at net asset value per share using the practical expedient will be presented as a reconciling item between the fair value hierarchy disclosure and the investment line item on the statement of financial position. The guidance also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using the practical expedient. The guidance is effective for the Registrants for fiscal years beginning after December 15, 2015 with early adoption permitted. The guidance is required to be applied retrospectively to all prior periods presented. The Registrants are currently assessing the impacts this guidance may have on their disclosures as well as the potential to early adopt the guidance. There will be no impact to their financial position, results of operations or cash flows. </font></div><div style="line-height:120%;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:29px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Customer&#8217;s Accounting for Fees Paid in a Cloud Computing Arrangement</font></div><div style="line-height:120%;text-align:justify;text-indent:29px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:13px;text-align:justify;text-indent:29px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In April 2015, the FASB issued authoritative guidance that clarifies the circumstances under which a cloud computing customer would account for the arrangement as a license of internal-use software. A cloud computing arrangement would include a software license if (1) the customer has a contractual right to take possession of the software at any time during the hosting period without significant penalty and (2) it is feasible for the customer to either run the software on its own hardware or contract with another party unrelated to the vendor to host the software. If the arrangement does not contain a software license, it would be accounted for as a service contract. The guidance is effective for the Registrants for fiscal years beginning after December 15, 2015. Early adoption is permitted. The guidance can be applied retrospectively to each prior reporting period presented or prospectively to arrangements entered into, or materially modified, after the effective date. The Registrants are currently assessing the impact this guidance may have on their financial positions, results of operations, cash flows and disclosures. The Registrants expect to apply the standard prospectively to arrangements entered into, or materially modified, after the standard becomes effective for the Registrants on January 1, 2016. The Registrants do not plan to early adopt the standard. </font></div><div style="line-height:174%;padding-bottom:13px;text-align:justify;text-indent:29px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Simplifying the Presentation of Debt Issuance Costs</font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In April 2015, the FASB issued authoritative guidance that changes the presentation of debt issuance costs in financial statements. The new guidance requires entity&#8217;s to present such costs in the balance sheet as a direct reduction to the related debt liability rather than as a deferred cost (i.e., an asset) as required by current guidance. The new standard does not change the recognition or measurement of debt issuance costs. The guidance is effective for the Registrants for fiscal years beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The guidance is required to be applied retrospectively to all prior periods presented. The Registrants are currently assessing the impact this guidance may have on their financial positions and disclosures. The standard will not impact the results of operations and cash flows of the Registrants. The Registrants expect to complete their assessment by the fourth quarter of 2015 and early adopt the standard at that time. </font></div><div style="line-height:120%;padding-top:6px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:13px;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;"> Amendments to the Consolidation Analysis</font></div><div style="line-height:120%;text-align:justify;text-indent:29px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In February 2015, the FASB issued authoritative guidance that amends the consolidation analysis for variable interest entities (VIEs) as well as voting interest entities. The new guidance primarily (1) changes the assessment of limited partnerships as VIEs, (2) amends the effect that fees paid to a decision maker or service provider have on the VIE analysis, (3) amends how variable interests held by a reporting entity&#8217;s related parties and de facto agents impact its consolidation conclusion, (4) clarifies how to determine whether equity holders (as a group) have power over an entity and (5) provides a scope exception for registered and similar unregistered money market funds. The guidance is effective for the Registrants for the first interim period within annual reporting periods beginning on or after December 15, 2015. Early adoption is permitted. The guidance can be applied retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with a cumulative effect adjustment to retained earnings for initial application of the guidance at the date of adoption (modified retrospective method). The Registrants are currently assessing the impact this guidance may have on their financial positions, results of operations, cash flows and disclosures as well as the transition method that they will use to adopt the guidance. The Registrants do not plan to early adopt the standard.</font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:13px;text-align:justify;text-indent:29px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Revenue from Contracts with Customers</font></div><div style="line-height:120%;padding-bottom:13px;text-align:justify;text-indent:29px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In May 2014, the FASB issued authoritative guidance that changes the criteria for recognizing revenue from a contract with a customer. The new guidance replaces existing guidance on revenue recognition, including most industry specific guidance, with a five step model for recognizing and measuring revenue from contracts with customers. The objective of the new standard is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries and across capital markets. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance also requires a number of disclosures regarding the nature, amount, timing and uncertainty of revenue and the related cash flows. The guidance can be applied retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with a cumulative effect adjustment to retained earnings for initial application of the guidance at the date of initial adoption (modified retrospective method). The Registrants are currently assessing the impacts this guidance may have on their financial positions, results of operations, cash flows and disclosures as well as the transition method that they will use to adopt the guidance. As currently issued, the guidance is effective for the Registrants for the first interim period within annual reporting periods beginning on or after December 15, 2016; and early adoption would not be permitted.&#160;&#160;However, in July 2015, the FASB approved an amendment to provide a one year deferral of the effective date to annual reporting periods beginning on or after December 15, 2017, as well as an option to early adopt the standard for annual periods beginning on or after December 15, 2016. As of July 29, 2015, the amendment to defer the effective date and provide an option to early adopt had not been issued.</font></div></div>

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