2016 Q4 Form 10-K Financial Statement

#000088209518000008 Filed on February 27, 2018

View on sec.gov

Income Statement

Concept 2016 Q4 2016 Q3 2016 Q2
Revenue $7.320B $7.500B $7.776B
YoY Change -13.94% -9.58% -5.68%
Cost Of Revenue $1.075B $1.129B $864.0M
YoY Change 1.22% 6.11% -13.43%
Gross Profit $6.141B $6.276B $6.787B
YoY Change -16.41% -12.19% -4.78%
Gross Profit Margin 83.89% 83.68% 87.28%
Selling, General & Admin $992.0M $831.0M $890.0M
YoY Change -6.94% -7.97% 9.61%
% of Gross Profit 16.15% 13.24% 13.11%
Research & Development $1.208B $1.141B $1.484B
YoY Change 59.58% 53.57% 81.42%
% of Gross Profit 19.67% 18.18% 21.87%
Depreciation & Amortization $292.0M $299.0M $284.0M
YoY Change 5.04% 7.55% 4.03%
% of Gross Profit 4.75% 4.76% 4.18%
Operating Expenses $2.200B $1.972B $2.374B
YoY Change 20.68% 19.81% 45.64%
Operating Profit $3.941B $4.399B $4.538B
YoY Change -28.66% -21.24% -19.2%
Interest Expense $199.0M $242.0M $227.0M
YoY Change -199.5% 46.67% 62.14%
% of Operating Profit 5.05% 5.5% 5.0%
Other Income/Expense, Net -$324.0M $119.0M $88.00M
YoY Change -2125.0% 128.85% 151.43%
Pretax Income $3.920B $4.276B $4.399B
YoY Change -27.9% -21.86% -20.18%
Income Tax $821.0M $951.0M $902.0M
% Of Pretax Income 20.94% 22.24% 20.5%
Net Earnings $3.108B $3.330B $3.497B
YoY Change -33.63% -27.61% -22.15%
Net Earnings / Revenue 42.46% 44.4% 44.97%
Basic Earnings Per Share $2.36 $2.52 $2.62
Diluted Earnings Per Share $2.34 $2.49 $2.58
COMMON SHARES
Basic Shares Outstanding 1.317B shares 1.322B shares 1.335B shares
Diluted Shares Outstanding 1.339B shares 1.355B shares

Balance Sheet

Concept 2016 Q4 2016 Q3 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $11.90B $12.27B $8.752B
YoY Change -18.57% -21.94% 1.64%
Cash & Equivalents $8.229B $9.809B $6.485B
Short-Term Investments $3.666B $2.457B $2.267B
Other Short-Term Assets $1.062B $820.0M $517.0M
YoY Change 110.3% 67.35% -6.51%
Inventory $1.587B $1.900B $1.862B
Prepaid Expenses $231.0M $280.0M $305.0M
Receivables $4.514B $5.075B $5.752B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $19.59B $21.43B $18.35B
YoY Change -20.89% -17.31% 1.44%
LONG-TERM ASSETS
Property, Plant & Equipment $2.865B $2.714B $2.599B
YoY Change 25.88% 26.64% 36.86%
Goodwill $1.172B $1.172B $1.172B
YoY Change 0.0% 0.0% 0.0%
Intangibles $8.971B $9.386B $9.713B
YoY Change -12.45% -10.22% -8.88%
Long-Term Investments $20.50B $19.35B $15.86B
YoY Change 76.67% 105.8% 161.96%
Other Assets $3.896B $1.647B $1.481B
YoY Change 317.13% 91.96% 117.16%
Total Long-Term Assets $37.39B $35.18B $31.63B
YoY Change 38.71% 42.29% 50.08%
TOTAL ASSETS
Total Short-Term Assets $19.59B $21.43B $18.35B
Total Long-Term Assets $37.39B $35.18B $31.63B
Total Assets $56.98B $56.61B $49.98B
YoY Change 10.17% 11.79% 27.61%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.206B $1.052B $1.122B
YoY Change 2.38% -15.09% -28.58%
Accrued Expenses $2.991B $3.478B $2.830B
YoY Change -5.71% 27.82% -53.73%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $700.0M $700.0M
YoY Change -100.0% 111.48% 98.86%
Total Short-Term Liabilities $9.218B $11.07B $10.44B
YoY Change -6.79% 18.3% 17.02%
LONG-TERM LIABILITIES
Long-Term Debt $26.35B $26.37B $21.43B
YoY Change 25.02% 20.45% 79.73%
Other Long-Term Liabilities $297.0M $184.0M $467.0M
YoY Change -24.81% -51.32% -38.55%
Total Long-Term Liabilities $26.64B $26.56B $21.89B
YoY Change 24.11% 19.23% 72.64%
TOTAL LIABILITIES
Total Short-Term Liabilities $9.218B $11.07B $10.44B
Total Long-Term Liabilities $26.64B $26.56B $21.89B
Total Liabilities $35.86B $37.63B $32.34B
YoY Change 14.36% 18.96% 49.66%
SHAREHOLDERS EQUITY
Retained Earnings $18.15B $16.65B $14.95B
YoY Change 0.85% -1.81% -6.79%
Common Stock $1.000M $1.000M $1.000M
YoY Change 0.0% 0.0% -50.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $18.89B $16.87B $15.54B
YoY Change
Total Liabilities & Shareholders Equity $56.98B $56.61B $49.98B
YoY Change 10.17% 11.79% 27.61%

Cashflow Statement

Concept 2016 Q4 2016 Q3 2016 Q2
OPERATING ACTIVITIES
Net Income $3.108B $3.330B $3.497B
YoY Change -33.63% -27.61% -22.15%
Depreciation, Depletion And Amortization $292.0M $299.0M $284.0M
YoY Change 5.04% 7.55% 4.03%
Cash From Operating Activities $3.539B $4.393B $4.985B
YoY Change -38.93% 7.25% -11.89%
INVESTING ACTIVITIES
Capital Expenditures -$169.0M -$198.0M -$204.0M
YoY Change 1.81% -30.77% 19.3%
Acquisitions
YoY Change
Other Investing Activities -$2.506B -$3.719B -$3.080B
YoY Change 10.3% -4.64% -8.9%
Cash From Investing Activities -$2.675B -$3.917B -$3.284B
YoY Change 9.72% -6.43% -7.55%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -2.348B 2.797B -1.561B
YoY Change -47.41% -57.9% -70.77%
NET CHANGE
Cash From Operating Activities 3.539B 4.393B 4.985B
Cash From Investing Activities -2.675B -3.917B -3.284B
Cash From Financing Activities -2.348B 2.797B -1.561B
Net Change In Cash -1.484B 3.273B 140.0M
YoY Change 33.94% -50.06% -104.33%
FREE CASH FLOW
Cash From Operating Activities $3.539B $4.393B $4.985B
Capital Expenditures -$169.0M -$198.0M -$204.0M
Free Cash Flow $3.708B $4.591B $5.189B
YoY Change -37.8% 4.77% -10.98%

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0.153
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3804000000 USD
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1064000000 USD
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1064000000 USD
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0 USD
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0 USD
CY2017 us-gaap Gain Loss On Discontinuation Of Foreign Currency Cash Flow Hedge Due To Forecasted Transaction Probable Of Not Occurring Net
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128000000 USD
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CY2017Q2 us-gaap Gross Profit
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CY2017Q3 us-gaap Gross Profit
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CY2017Q4 us-gaap Gross Profit
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CY2016 us-gaap Impairment Of Intangible Assets Indefinitelived Excluding Goodwill
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CY2017 us-gaap Impairment Of Intangible Assets Indefinitelived Excluding Goodwill
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CY2015 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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CY2016 us-gaap Increase Decrease In Accrued Income Taxes Payable
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CY2017 us-gaap Increase Decrease In Accrued Income Taxes Payable
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CY2016 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2017 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2015 us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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CY2017 us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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CY2015 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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CY2016 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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CY2016Q4 us-gaap Inventory Work In Process Net Of Reserves
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CY2017Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Five
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389000000 USD
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21000000 USD
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CY2017 us-gaap Other Than Temporary Impairment Losses Investments Availableforsale Securities
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CY2015 us-gaap Payments For Repurchase Of Common Stock
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0 USD
CY2016 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
0 USD
CY2017 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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10426000000 USD
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0 USD
CY2016 us-gaap Payments To Acquire Other Investments
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357000000 USD
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CY2015 us-gaap Payments To Acquire Productive Assets
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747000000 USD
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748000000 USD
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590000000 USD
CY2016Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
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0.001
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5000000 shares
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5000000 shares
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CY2017Q4 us-gaap Preferred Stock Shares Outstanding
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0 shares
CY2016Q4 us-gaap Preferred Stock Value
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CY2017Q4 us-gaap Preferred Stock Value
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1661000000 USD
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CY2017 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%;padding-top:18px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Recently Issued Accounting Pronouncements Not Yet Adopted</font></div><div style="line-height:120%;padding-top:6px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09) &#8220;Revenue from Contracts with Customers.&#8221; The standard&#8217;s core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard will become effective for us beginning in the first quarter of 2018. Early adoption is permitted in 2017. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt this new guidance. The FASB issued supplemental adoption guidance and clarification to ASU 2014-09 in March 2016, April 2016, May 2016 and December 2016 within ASU 2016-08 &#8220;Revenue from Contracts with Customers: Principal versus Agent Considerations,&#8221; ASU 2016-10 &#8220;Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing,&#8221; ASU 2016-12 &#8220;Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients&#8221; and ASU 2016-20 &#8220;Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,&#8221; respectively. We are adopting these standards using the modified retrospective approach. The cumulative effect of adopting these standards will be recorded to retained earnings on January 1, 2018. We have completed our assessment of the effect of adoption. Based on our assessment, we will accelerate recognition of royalty revenues and certain other revenues that have been recognized on a cash basis or sell through method to the periods in which the sales occur, subject to the constraint on variable consideration. We do not expect the adoption of these standards to have a material impact on our Consolidated Financial Statements.</font></div><div style="line-height:120%;padding-top:6px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2016, the FASB issued Accounting Standards Update No. 2016-01 (ASU 2016-01) &#8220;Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.&#8221; ASU 2016-01 changes accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. In addition, it clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The guidance will become effective for us beginning in the first quarter of 2018 and must be adopted using a modified retrospective approach, with certain exceptions. Early adoption is permitted for certain provisions. We plan to adopt this guidance in the first quarter of 2018. We expect an impact primarily related to the recognition and measurement of our equity investment in Galapagos NV (Galapagos). We will reclassify the unrealized net gain from AOCI to retained earnings as of the date of the adoption, which primarily comprises of </font><font style="font-family:inherit;font-size:10pt;">$278 million</font><font style="font-family:inherit;font-size:10pt;"> of unrealized gain based on the fair value of our equity investment in Galapagos as of December 31, 2017.</font></div><div style="line-height:120%;padding-top:6px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (ASU 2016-02) &#8220;Leases.&#8221; ASU 2016-02 amends a number of aspects of lease accounting, including requiring lessees to recognize almost all leases with a term greater than one year as a right-of-use asset and corresponding liability, measured at the present value of the lease payments. The guidance will become effective for us beginning in the first quarter of 2019 and is required to be adopted using a modified retrospective approach. Early adoption is permitted. We are evaluating the impact of the adoption of this standard and we anticipate recognition of additional assets and corresponding liabilities related to leases on our Consolidated Balance Sheets.</font></div><div style="line-height:120%;padding-top:6px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In June 2016,&#160;the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13)&#160;&#8220;Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments.&#8221;&#160;ASU 2016-13 requires measurement and recognition of expected credit losses for financial assets. This guidance will become effective for us beginning in the first quarter of 2020 and must be adopted using a modified retrospective approach, with certain exceptions. Early adoption is permitted beginning in the first quarter of 2019.&#160;We are evaluating the impact of the adoption of this standard on our Consolidated Financial Statements.</font></div></div>

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