2018 Q1 Form 10-K Financial Statement

#000088209519000006 Filed on February 26, 2019

View on sec.gov

Income Statement

Concept 2018 Q1 2017 Q4 2017 Q3
Revenue $5.088B $5.949B $6.512B
YoY Change -21.78% -18.73% -13.17%
Cost Of Revenue $1.001B $1.256B $1.032B
YoY Change 4.6% 16.84% -8.59%
Gross Profit $4.000B $4.581B $5.370B
YoY Change -26.2% -25.4% -14.44%
Gross Profit Margin 78.62% 77.0% 82.46%
Selling, General & Admin $997.0M $1.252B $879.0M
YoY Change 17.29% 26.21% 5.78%
% of Gross Profit 24.93% 27.33% 16.37%
Research & Development $937.0M $1.150B $789.0M
YoY Change 0.64% -4.8% -30.85%
% of Gross Profit 23.43% 25.1% 14.69%
Depreciation & Amortization $56.00M $397.0M $297.0M
YoY Change 14.29% 35.96% -0.67%
% of Gross Profit 1.4% 8.67% 5.53%
Operating Expenses $1.934B $2.402B $1.668B
YoY Change 8.59% 9.18% -15.42%
Operating Profit $2.153B $2.179B $3.812B
YoY Change -42.85% -44.71% -13.34%
Interest Expense $290.0M -$289.0M $291.0M
YoY Change 11.11% -245.23% 20.25%
% of Operating Profit 13.47% -13.26% 7.63%
Other Income/Expense, Net $170.0M $124.0M $150.0M
YoY Change 53.15% -138.27% 26.05%
Pretax Income $2.033B $2.126B $3.671B
YoY Change -43.79% -45.77% -14.15%
Income Tax $494.0M $470.0M $959.0M
% Of Pretax Income 24.3% 22.11% 26.12%
Net Earnings $1.538B -$3.865B $2.718B
YoY Change -43.08% -224.36% -18.38%
Net Earnings / Revenue 30.23% -64.97% 41.74%
Basic Earnings Per Share $1.18 -$2.96 $2.08
Diluted Earnings Per Share $1.17 -$2.96 $2.06
COMMON SHARES
Basic Shares Outstanding 1.307B shares 1.306B shares 1.306B shares
Diluted Shares Outstanding 1.320B shares 1.319B shares

Balance Sheet

Concept 2018 Q1 2017 Q4 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $24.00B $25.51B $28.39B
YoY Change 70.02% 114.46% 131.43%
Cash & Equivalents $7.643B $7.588B $11.51B
Short-Term Investments $16.36B $17.92B $16.88B
Other Short-Term Assets $1.600B $1.661B $1.664B
YoY Change -11.16% 56.4% 102.93%
Inventory $885.0M $801.0M $1.144B
Prepaid Expenses
Receivables $3.775B $3.851B $4.122B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $30.26B $31.82B $35.32B
YoY Change 41.23% 62.46% 64.84%
LONG-TERM ASSETS
Property, Plant & Equipment $3.415B $3.295B $3.100B
YoY Change 16.87% 15.01% 14.22%
Goodwill $4.159B $4.159B $1.172B
YoY Change 254.86% 254.86% 0.0%
Intangibles $16.80B $17.10B $8.342B
YoY Change 91.79% 90.61% -11.12%
Long-Term Investments $8.104B $11.19B $13.00B
YoY Change -59.28% -45.38% -32.82%
Other Assets $2.732B $2.722B $2.611B
YoY Change 18.17% -30.13% 58.53%
Total Long-Term Assets $35.12B $38.46B $29.35B
YoY Change -3.18% 2.86% -16.6%
TOTAL ASSETS
Total Short-Term Assets $30.26B $31.82B $35.32B
Total Long-Term Assets $35.12B $38.46B $29.35B
Total Assets $65.38B $70.28B $64.66B
YoY Change 13.31% 23.35% 14.23%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $711.0M $814.0M $696.0M
YoY Change -24.68% -32.5% -33.84%
Accrued Expenses $3.255B $3.370B $2.482B
YoY Change 23.95% 12.67% -28.64%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $2.497B $2.747B $1.747B
YoY Change 149.57%
Total Short-Term Liabilities $10.67B $11.64B $9.597B
YoY Change 28.83% 26.22% -13.33%
LONG-TERM LIABILITIES
Long-Term Debt $26.56B $30.80B $27.52B
YoY Change 0.9% 16.89% 4.34%
Other Long-Term Liabilities $589.0M $558.0M $259.0M
YoY Change 76.88% 87.88% 40.76%
Total Long-Term Liabilities $27.15B $31.35B $27.77B
YoY Change 1.85% 17.68% 4.59%
TOTAL LIABILITIES
Total Short-Term Liabilities $10.67B $11.64B $9.597B
Total Long-Term Liabilities $27.15B $31.35B $27.77B
Total Liabilities $37.82B $42.99B $37.37B
YoY Change 8.24% 19.87% -0.68%
SHAREHOLDERS EQUITY
Retained Earnings $19.20B $19.01B $23.69B
YoY Change -1.85% 4.73% 42.24%
Common Stock $1.000M $1.000M $1.000M
YoY Change 0.0% 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $20.59B $20.44B $24.85B
YoY Change
Total Liabilities & Shareholders Equity $65.38B $70.28B $64.66B
YoY Change 13.31% 23.35% 14.23%

Cashflow Statement

Concept 2018 Q1 2017 Q4 2017 Q3
OPERATING ACTIVITIES
Net Income $1.538B -$3.865B $2.718B
YoY Change -43.08% -224.36% -18.38%
Depreciation, Depletion And Amortization $56.00M $397.0M $297.0M
YoY Change 14.29% 35.96% -0.67%
Cash From Operating Activities $2.270B $2.753B $2.694B
YoY Change -22.39% -22.21% -38.68%
INVESTING ACTIVITIES
Capital Expenditures $212.0M -$220.0M -$129.0M
YoY Change 79.66% 30.18% -34.85%
Acquisitions
YoY Change
Other Investing Activities $20.00M -$9.796B -$1.985B
YoY Change -95.29% 290.9% -46.63%
Cash From Investing Activities $4.354B -$10.02B -$2.114B
YoY Change 1318.24% 274.43% -46.03%
FINANCING ACTIVITIES
Cash Dividend Paid $753.0M
YoY Change 9.61%
Common Stock Issuance & Retirement, Net $928.0M
YoY Change 97.87%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$6.595B 3.347B 2.170B
YoY Change 430.14% -242.55% -22.42%
NET CHANGE
Cash From Operating Activities $2.270B 2.753B 2.694B
Cash From Investing Activities $4.354B -10.02B -2.114B
Cash From Financing Activities -$6.595B 3.347B 2.170B
Net Change In Cash $29.00M -3.916B 2.750B
YoY Change -98.54% 163.88% -15.98%
FREE CASH FLOW
Cash From Operating Activities $2.270B $2.753B $2.694B
Capital Expenditures $212.0M -$220.0M -$129.0M
Free Cash Flow $2.058B $2.973B $2.823B
YoY Change -26.68% -19.82% -38.51%

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80000000 USD
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53000000 USD
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2957 security
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2.05
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0.000
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104000000 USD
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280000000 USD
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164000000 USD
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115000000 USD
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3804000000 USD
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5007000000 USD
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8048000000 USD
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1149000000 USD
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1124000000 USD
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1124000000 USD
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1124000000 USD
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1125000000 USD
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18154000000 USD
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18704000000 USD
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14350000000 USD
CY2018Q4 us-gaap Finite Lived Intangible Assets Net
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13694000000 USD
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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 February 2016, the FASB issued Accounting Standards Update No. 2016-02 &#8220;Leases&#8221; (Topic 842). Topic 842 amends a number of aspects of lease accounting, including requiring lessees to recognize 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. In July 2018, the FASB issued supplemental adoption guidance and clarification to Topic 842 within ASU 2018-10 &#8220;Codification Improvements to Topic 842, Leases&#8221; and ASU 2018-11 &#8220;Leases (Topic 842): Targeted Improvements.&#8221; The guidance will become effective for us beginning in the first quarter of 2019. The modified retrospective transition approach is required. We plan to adopt these standards on the effective date by recording a cumulative effect adjustment to the opening balance of retained earnings on January 1, 2019.</font></div><div style="line-height:120%;padding-top:6px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Based on our lease portfolio as of December 31, 2018, we anticipate recognition of lease assets and liabilities of approximately </font><font style="font-family:inherit;font-size:10pt;">$500 million</font><font style="font-family:inherit;font-size:10pt;"> on our consolidated balance sheet upon adoption with no material impact to our consolidated statements of income. We will elect the practical expedients upon transition to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. We will also elect the practical expedient for lessees to combine lease and nonlease components for all asset classes. We are in the process of finalizing key system functionality and updating our controls and procedures for maintaining and accounting for our lease portfolio under the new guidance.</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 &#8220;Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments&#8221; (ASU 2016-13).&#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 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 November 2018,&#160;the FASB issued Accounting Standards Update No. 2018-18 &#8220;Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606&#8221; (ASU 2018-18).&#160;ASU 2018-18 clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account, adds unit-of-account guidance in Topic 808 to align with the guidance in Topic 606, and precludes entities from presenting amounts related to transactions with a collaborative arrangement participant that is not a customer as revenue, unless those transactions are directly related to third-party sales. This guidance will become effective for us beginning in the first quarter of 2020 and should be applied retrospectively to January 1, 2018 when we initially adopted Topic 606. Early adoption is permitted.&#160;We are evaluating the impact of the adoption of this standard but we currently do not expect a material impact on our revenue.</font></div></div>

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