2023 Q2 Form 10-Q Financial Statement

#000193239323000087 Filed on April 25, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1 2022 Q4
Revenue $4.817B $4.707B $4.938B
YoY Change -45.43% 8.38% 7.61%
Cost Of Revenue $2.877B $2.816B $3.006B
YoY Change -46.25% 10.23%
Gross Profit $1.940B $1.891B $1.932B
YoY Change -44.16% 12.69% 3.76%
Gross Profit Margin 40.27% 40.17% 39.13%
Selling, General & Admin $1.072B $1.062B $884.0M
YoY Change -41.71% 14.07% -2.86%
% of Gross Profit 55.26% 56.16% 45.76%
Research & Development $298.0M $270.0M $271.0M
YoY Change -39.8% 13.45% 20.44%
% of Gross Profit 15.36% 14.28% 14.03%
Depreciation & Amortization $156.0M $61.00M $157.0M
YoY Change -50.63% 8.93% 1.95%
% of Gross Profit 8.04% 3.23% 8.13%
Operating Expenses $1.370B $1.332B $1.155B
YoY Change -41.3% 13.94% 1.76%
Operating Profit $570.0M $559.0M $777.0M
YoY Change -50.0% 9.82% 6.88%
Interest Expense -$132.0M -$119.0M -$59.00M
YoY Change 725.0% 883.33%
% of Operating Profit -23.16% -21.29% -7.59%
Other Income/Expense, Net $132.0M $8.000M $0.00
YoY Change 175.0% -69.23% -100.0%
Pretax Income $570.0M $546.0M $718.0M
YoY Change -51.37% 2.44% -4.9%
Income Tax $137.0M $163.0M $151.0M
% Of Pretax Income 24.04% 29.85% 21.03%
Net Earnings $418.0M $372.0M $554.0M
YoY Change -52.17% -4.37% -1.77%
Net Earnings / Revenue 8.68% 7.9% 11.22%
Basic Earnings Per Share $0.92 $0.42
Diluted Earnings Per Share $0.91 $0.41 $1.21
COMMON SHARES
Basic Shares Outstanding 454.7M shares 453.9M shares
Diluted Shares Outstanding 458.0M shares 457.0M shares

Balance Sheet

Concept 2023 Q2 2023 Q1 2022 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.939B $2.327B $1.445B
YoY Change 269.33%
Cash & Equivalents $1.939B $2.324B $1.445B
Short-Term Investments
Other Short-Term Assets $596.0M $634.0M $417.0M
YoY Change 18.02%
Inventory $2.264B $2.256B $2.155B
Prepaid Expenses
Receivables $4.414B $4.356B $4.284B
Other Receivables $27.00M $31.00M $17.00M
Total Short-Term Assets $9.240B $9.604B $8.318B
YoY Change 24.73%
LONG-TERM ASSETS
Property, Plant & Equipment $2.357B $2.327B $2.314B
YoY Change 9.07%
Goodwill $12.93B $12.92B $12.81B
YoY Change -0.61%
Intangibles $1.423B $1.494B $1.520B
YoY Change
Long-Term Investments $182.0M
YoY Change
Other Assets $6.362B $1.952B $2.574B
YoY Change 167.87%
Total Long-Term Assets $23.07B $23.03B $19.22B
YoY Change 21.07%
TOTAL ASSETS
Total Short-Term Assets $9.240B $9.604B $8.318B
Total Long-Term Assets $23.07B $23.03B $19.22B
Total Assets $32.31B $32.64B $27.54B
YoY Change 22.09%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.835B $2.977B $2.944B
YoY Change 4.92%
Accrued Expenses
YoY Change
Deferred Revenue $2.003B $2.031B $1.896B
YoY Change
Short-Term Debt $0.00 $5.000M $0.00
YoY Change -100.0%
Long-Term Debt Due $5.000M $5.000M $15.00M
YoY Change -16.67%
Total Short-Term Liabilities $7.581B $8.236B $7.191B
YoY Change 13.27%
LONG-TERM LIABILITIES
Long-Term Debt $10.23B $10.23B $8.234B
YoY Change 34010.0%
Other Long-Term Liabilities $7.093B $1.834B $2.152B
YoY Change 239.05%
Total Long-Term Liabilities $17.33B $12.07B $10.39B
YoY Change 716.49%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.581B $8.236B $7.191B
Total Long-Term Liabilities $17.33B $12.07B $10.39B
Total Liabilities $25.21B $25.74B $18.18B
YoY Change 167.24%
SHAREHOLDERS EQUITY
Retained Earnings $576.0M $185.0M $0.00
YoY Change
Common Stock $5.000M $5.000M $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $7.102B $6.690B $9.357B
YoY Change
Total Liabilities & Shareholders Equity $32.31B $32.64B $27.54B
YoY Change 22.09%

Cashflow Statement

Concept 2023 Q2 2023 Q1 2022 Q4
OPERATING ACTIVITIES
Net Income $418.0M $372.0M $554.0M
YoY Change -52.17% -4.37% -1.77%
Depreciation, Depletion And Amortization $156.0M $61.00M $157.0M
YoY Change -50.63% 8.93% 1.95%
Cash From Operating Activities -$67.00M $468.0M $1.042B
YoY Change -114.92% 0.0% -9572.73%
INVESTING ACTIVITIES
Capital Expenditures $70.00M $143.0M $77.00M
YoY Change -55.97% 43.0% 5.48%
Acquisitions $127.0M
YoY Change
Other Investing Activities -$14.00M -$4.000M -$18.00M
YoY Change -46.15% -233.33% -98.77%
Cash From Investing Activities -$84.00M -$266.0M -$95.00M
YoY Change -54.59% 166.0% -93.8%
FINANCING ACTIVITIES
Cash Dividend Paid $0.00
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $0.00
YoY Change
Cash From Financing Activities -227.0M $673.0M -37.00M
YoY Change -18.93% -260.24% -102.64%
NET CHANGE
Cash From Operating Activities -67.00M $468.0M 1.042B
Cash From Investing Activities -84.00M -$266.0M -95.00M
Cash From Financing Activities -227.0M $673.0M -37.00M
Net Change In Cash -378.0M $883.0M 910.0M
YoY Change 2262.5% -1705.45% -740.85%
FREE CASH FLOW
Cash From Operating Activities -$67.00M $468.0M $1.042B
Capital Expenditures $70.00M $143.0M $77.00M
Free Cash Flow -$137.0M $325.0M $965.0M
YoY Change -147.24% -11.68% -1248.81%

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<div style="margin-bottom:8pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:700;line-height:120%">ESTIMATES AND ASSUMPTIONS. </span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:120%">The preparation of the condensed consolidated and combined financial statements in conformity with U.S. GAAP requires management to make estimates based on assumptions about current, and for some estimates, future, economic and market conditions, which affect the reported amounts and related disclosures in the condensed consolidated and combined financial statements. We base our estimates and judgments on historical experience and on various other assumptions and information that we believe to be reasonable under the circumstances. Although our estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations, financial position, and cash flows. </span></div>While there has not been a material impact to our accounting estimates as of March 31, 2023 and December 31, 2022 and the results for the three months ended March 31, 2023 and 2022, a number of estimates could be affected by the ongoing COVID-19 pandemic. The severity, magnitude, and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain and difficult to predict. As a result, our accounting estimates and assumptions may change over time in response to COVID-19. Such changes could result in future impairments of goodwill, intangible assets, long-lived assets, and investment securities, incremental credit losses on receivables, a decrease in the realizability of our tax assets, or an increase in our related obligations as of the time of a relevant measurement event.
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<div style="margin-bottom:8pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:700;line-height:120%">ESTIMATES AND ASSUMPTIONS. </span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:120%">The preparation of the condensed consolidated and combined financial statements in conformity with U.S. GAAP requires management to make estimates based on assumptions about current, and for some estimates, future, economic and market conditions, which affect the reported amounts and related disclosures in the condensed consolidated and combined financial statements. We base our estimates and judgments on historical experience and on various other assumptions and information that we believe to be reasonable under the circumstances. Although our estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations, financial position, and cash flows. </span></div>While there has not been a material impact to our accounting estimates as of March 31, 2023 and December 31, 2022 and the results for the three months ended March 31, 2023 and 2022, a number of estimates could be affected by the ongoing COVID-19 pandemic. The severity, magnitude, and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain and difficult to predict. As a result, our accounting estimates and assumptions may change over time in response to COVID-19. Such changes could result in future impairments of goodwill, intangible assets, long-lived assets, and investment securities, incremental credit losses on receivables, a decrease in the realizability of our tax assets, or an increase in our related obligations as of the time of a relevant measurement event.
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