2016 Q1 Form 10-Q Financial Statement

#000119312516569346 Filed on April 29, 2016

View on sec.gov

Income Statement

Concept 2016 Q1 2015 Q1
Revenue $1.785B $2.135B
YoY Change -16.39% 0.9%
Cost Of Revenue $860.0M $1.192B
YoY Change -27.85% -0.17%
Gross Profit $925.0M $943.0M
YoY Change -1.91% 2.28%
Gross Profit Margin 51.82% 44.17%
Selling, General & Admin $394.0M $267.0M
YoY Change 47.57% -29.37%
% of Gross Profit 42.59% 28.31%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $99.00M $121.0M
YoY Change -18.18% -9.7%
% of Gross Profit 10.7% 12.83%
Operating Expenses $394.0M $267.0M
YoY Change 47.57% -29.37%
Operating Profit $103.0M $154.0M
YoY Change -33.12% -20.62%
Interest Expense $105.0M $107.0M
YoY Change -1.87% -15.75%
% of Operating Profit 101.94% 69.48%
Other Income/Expense, Net
YoY Change
Pretax Income $150.0M $294.0M
YoY Change -48.98% -3.92%
Income Tax $23.00M $91.00M
% Of Pretax Income 15.33% 30.95%
Net Earnings $53.00M $154.0M
YoY Change -65.58% -16.3%
Net Earnings / Revenue 2.97% 7.21%
Basic Earnings Per Share $0.11 $0.31
Diluted Earnings Per Share $0.11 $0.31
COMMON SHARES
Basic Shares Outstanding 498.0M shares 497.0M shares
Diluted Shares Outstanding 499.4M shares 498.9M shares

Balance Sheet

Concept 2016 Q1 2015 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $4.043B $4.937B
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill $15.00M
YoY Change -98.27%
Intangibles $227.0M
YoY Change -30.58%
Long-Term Investments $70.30B $72.74B
YoY Change -3.36% 3.29%
Other Assets $131.0M
YoY Change
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $107.2B $112.3B
YoY Change -4.59% 2.34%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities
YoY Change
LONG-TERM LIABILITIES
Long-Term Debt $4.715B $6.789B
YoY Change -30.55% -8.49%
Other Long-Term Liabilities $4.527B $4.522B
YoY Change 0.11% 19.72%
Total Long-Term Liabilities $9.242B $11.31B
YoY Change -18.29% 1.03%
TOTAL LIABILITIES
Total Short-Term Liabilities
Total Long-Term Liabilities $9.242B $11.31B
Total Liabilities $91.20B $95.25B
YoY Change -4.25% 2.39%
SHAREHOLDERS EQUITY
Retained Earnings $617.0M $1.333B
YoY Change -53.71% -48.87%
Common Stock $1.000M $1.000M
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $2.700B $2.700B
YoY Change 0.0% 0.0%
Treasury Stock Shares 88.00M shares 88.00M shares
Shareholders Equity $14.06B $15.32B
YoY Change
Total Liabilities & Shareholders Equity $107.2B $112.3B
YoY Change -4.59% 2.34%

Cashflow Statement

Concept 2016 Q1 2015 Q1
OPERATING ACTIVITIES
Net Income $53.00M $154.0M
YoY Change -65.58% -16.3%
Depreciation, Depletion And Amortization $99.00M $121.0M
YoY Change -18.18% -9.7%
Cash From Operating Activities $256.0M $624.0M
YoY Change -58.97% 922.95%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities -$34.00M $89.00M
YoY Change -138.2% -180.18%
Cash From Investing Activities -$255.0M -$366.0M
YoY Change -30.33% 79.41%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $326.0M
YoY Change
Cash From Financing Activities -1.941B 35.00M
YoY Change -5645.71% -86.99%
NET CHANGE
Cash From Operating Activities 256.0M 624.0M
Cash From Investing Activities -255.0M -366.0M
Cash From Financing Activities -1.941B 35.00M
Net Change In Cash -1.940B 293.0M
YoY Change -762.12% 132.54%
FREE CASH FLOW
Cash From Operating Activities $256.0M $624.0M
Capital Expenditures
Free Cash Flow
YoY Change

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Our repurchase agreement and securities lending programs expose us to liquidity risk if we did not have enough cash or collateral readily available to return to the counterparty when required to do so under the agreements. We manage this risk by regularly monitoring our available sources of cash and collateral to ensure we can meet short-term liquidity demands under normal and stressed scenarios. We are also exposed to credit risk in the event of default of our counterparties or changes in collateral values. This risk is significantly reduced because our programs require over collateralization and collateral exposures are trued up on a daily basis. We manage this risk by using multiple counterparties and ensuring that changes in required collateral are monitored and adjusted daily. We also monitor the creditworthiness, including credit ratings, of our counterparties on a regular basis.
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<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 4%; MARGIN-TOP: 0pt"> <i>Accounting Pronouncements Not Yet Adopted</i></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> In March 2016, the Financial Accounting Standards Board (the &#x201C;FASB&#x201D;) issued new accounting guidance related to the accounting for stock compensation. The guidance primarily simplifies the accounting for employee share-based payment transactions, including a new requirement to record all of the income tax effects at settlement or expiration through the income statement, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for us on January&#xA0;1, 2017, with early adoption permitted. We are in the process of determining the impact from this guidance on our consolidated financial statements.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> In March 2016, the FASB issued new accounting guidance related to transition to the equity method of accounting. The guidance eliminates the retrospective application of the equity method of accounting when obtaining significant influence over a previously held investment. The guidance requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The guidance is effective for us on January&#xA0;1, 2017, with early adoption permitted. We do not expect any significant impact from this guidance on our consolidated financial statements.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> In March 2016, the FASB issued new accounting guidance related to the assessment of contingent put and call options in debt instruments. The guidance clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. The guidance is effective for us on January&#xA0;1, 2017, with early adoption permitted. We are in the process of determining the impact from this guidance on our consolidated financial statements.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> In March 2016, the FASB issued new accounting guidance related to the effect of derivative contract novations on existing hedge accounting relationships. The guidance clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The guidance is effective for us on January&#xA0;1, 2017, with early adoption permitted. This guidance is consistent with our accounting for derivative contract novations and, accordingly, we do not expect any impact on our consolidated financial statements.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> In February 2016, the FASB issued new accounting guidance related to the accounting for leases. The new guidance generally requires lessees to recognize both a right-to-use asset and a corresponding liability on the balance sheet. The guidance is effective for us on January&#xA0;1, 2019, with early adoption permitted. We are still in the process of evaluating the impact this guidance will have on our consolidated financial statements.</p> </div>
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