2017 Q4 Form 10-K Financial Statement

#000165204419000004 Filed on February 05, 2019

View on sec.gov

Income Statement

Concept 2017 Q4 2016 Q4 2016
Revenue $32.32B $26.06B $90.27B
YoY Change 24.01% 22.2% 20.38%
Cost Of Revenue $14.27B $10.66B $35.14B
YoY Change 33.82% 30.2% 24.76%
Gross Profit $18.06B $15.40B $55.13B
YoY Change 17.22% 17.21% 17.74%
Gross Profit Margin 55.86% 59.1% 61.08%
Selling, General & Admin $6.054B $5.142B $17.47B
YoY Change 17.74% 20.96% 15.06%
% of Gross Profit 33.53% 33.38% 31.69%
Research & Development $4.306B $3.622B $13.95B
YoY Change 18.88% 3.19% 13.56%
% of Gross Profit 23.85% 23.51% 25.3%
Depreciation & Amortization $2.026B $1.687B $6.144B
YoY Change 20.09% 20.16% 21.35%
% of Gross Profit 11.22% 10.95% 11.14%
Operating Expenses $10.36B $8.764B $31.42B
YoY Change 18.21% 12.92% 14.39%
Operating Profit $7.696B $6.639B $23.72B
YoY Change 15.92% 23.4% 22.5%
Interest Expense $364.0M $445.0M $124.0M
YoY Change -18.2% -236.92% 19.23%
% of Operating Profit 4.73% 6.7% 0.52%
Other Income/Expense, Net -$42.00M -$227.0M $434.0M
YoY Change -81.5% -256.55% 49.14%
Pretax Income $8.018B $6.857B $12.00B
YoY Change 16.93% 31.87% 44.58%
Income Tax $1.214B $1.524B $4.672B
% Of Pretax Income 15.14% 22.23% 38.93%
Net Earnings -$3.020B $5.333B $19.48B
YoY Change -156.63% 8.33% 19.15%
Net Earnings / Revenue -9.34% 20.46% 21.58%
Basic Earnings Per Share $28.32
Diluted Earnings Per Share -$217.4K $385.7K $27.85
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q4 2016 Q4 2016
SHORT-TERM ASSETS
Cash & Short-Term Investments $101.9B $86.33B $86.33B
YoY Change 18.0% 18.16% 18.16%
Cash & Equivalents $10.72B $12.92B $5.840B
Short-Term Investments $91.16B $73.42B $73.42B
Other Short-Term Assets $2.983B $4.575B $4.575B
YoY Change -34.8% 45.75% 45.75%
Inventory $749.0M $268.0M $268.0M
Prepaid Expenses
Receivables $18.34B $14.14B $14.14B
Other Receivables $369.0M $95.00M $95.00M
Total Short-Term Assets $124.3B $105.4B $105.4B
YoY Change 17.93% 16.97% 16.97%
LONG-TERM ASSETS
Property, Plant & Equipment $42.38B $34.23B $34.23B
YoY Change 23.8% 17.98% 17.98%
Goodwill $16.75B $16.47B
YoY Change 1.69% 3.77%
Intangibles $2.692B $3.307B
YoY Change -18.6% -14.04%
Long-Term Investments $1.400B $1.700B $5.878B
YoY Change -17.65% 6.25% 13.41%
Other Assets $2.672B $1.819B $2.202B
YoY Change 46.89% -47.0% -35.84%
Total Long-Term Assets $72.99B $62.09B $62.09B
YoY Change 17.55% 8.27% 8.27%
TOTAL ASSETS
Total Short-Term Assets $124.3B $105.4B $105.4B
Total Long-Term Assets $72.99B $62.09B $62.09B
Total Assets $197.3B $167.5B $167.5B
YoY Change 17.79% 13.59% 13.59%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.137B $2.041B $2.041B
YoY Change 53.7% 5.7% 5.7%
Accrued Expenses $10.18B $6.144B $10.11B
YoY Change 65.64% 28.86% 21.87%
Deferred Revenue $1.432B
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0% -100.0%
Long-Term Debt Due $0.00 $0.00 $0.00
YoY Change -100.0% -100.0%
Total Short-Term Liabilities $24.18B $16.76B $16.76B
YoY Change 44.32% -13.23% -13.23%
LONG-TERM LIABILITIES
Long-Term Debt $3.943B $3.935B $3.935B
YoY Change 0.2% 97.24% 97.24%
Other Long-Term Liabilities $3.059B $2.665B $7.544B
YoY Change 14.78% 46.27% 33.85%
Total Long-Term Liabilities $7.002B $6.600B $11.48B
YoY Change 6.09% 72.91% 50.43%
TOTAL LIABILITIES
Total Short-Term Liabilities $24.18B $16.76B $16.76B
Total Long-Term Liabilities $7.002B $6.600B $11.48B
Total Liabilities $44.79B $28.46B $28.46B
YoY Change 57.38% 4.91% 4.91%
SHAREHOLDERS EQUITY
Retained Earnings $113.2B $105.1B
YoY Change 7.72% 17.83%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $152.5B $139.0B $139.0B
YoY Change
Total Liabilities & Shareholders Equity $197.3B $167.5B $167.5B
YoY Change 17.79% 13.59% 13.59%

Cashflow Statement

Concept 2017 Q4 2016 Q4 2016
OPERATING ACTIVITIES
Net Income -$3.020B $5.333B $19.48B
YoY Change -156.63% 8.33% 19.15%
Depreciation, Depletion And Amortization $2.026B $1.687B $6.144B
YoY Change 20.09% 20.16% 21.35%
Cash From Operating Activities $10.27B $9.413B $36.04B
YoY Change 9.08% 42.43% 35.62%
INVESTING ACTIVITIES
Capital Expenditures -$4.307B -$3.078B $10.21B
YoY Change 39.93% 46.43% 2.63%
Acquisitions
YoY Change
Other Investing Activities -$2.667B -$1.624B -$20.95B
YoY Change 64.22% -52.02% 52.26%
Cash From Investing Activities -$6.974B -$4.702B -$31.17B
YoY Change 48.32% -14.31% 31.44%
FINANCING ACTIVITIES
Cash Dividend Paid $0.00
YoY Change -100.0%
Common Stock Issuance & Retirement, Net $3.693B
YoY Change 107.47%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -3.178B -892.0M -$8.332B
YoY Change 256.28% -65.14% 97.21%
NET CHANGE
Cash From Operating Activities 10.27B 9.413B $36.04B
Cash From Investing Activities -6.974B -4.702B -$31.17B
Cash From Financing Activities -3.178B -892.0M -$8.332B
Net Change In Cash 116.0M 3.819B -$3.461B
YoY Change -96.96% -365.76% 153.74%
FREE CASH FLOW
Cash From Operating Activities $10.27B $9.413B $36.04B
Capital Expenditures -$4.307B -$3.078B $10.21B
Free Cash Flow $14.58B $12.49B $25.82B
YoY Change 16.68% 43.39% 55.36%

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0.045
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0.022
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0.020
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1500000000 USD
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5460000000 USD
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178000000 USD
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2220000000 USD
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247000000 USD
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112000000 USD
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226000000 USD
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195000000 USD
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221000000 USD
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1227000000 USD
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CY2017 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 USD
CY2018 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 USD
CY2018 us-gaap Goodwill Transfers
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10064000000 USD
CY2017 us-gaap Repayments Of Debt And Capital Lease Obligations
RepaymentsOfDebtAndCapitalLeaseObligations
4377000000 USD
CY2018 us-gaap Repayments Of Debt And Capital Lease Obligations
RepaymentsOfDebtAndCapitalLeaseObligations
6827000000 USD
CY2016 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
13948000000 USD
CY2017 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
16625000000 USD
CY2018 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
21419000000 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
113247000000 USD
CY2018Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
134885000000 USD
CY2016 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
90272000000 USD
CY2017 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
110855000000 USD
CY2018 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
136819000000 USD
CY2016 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
10485000000 USD
CY2017 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
12893000000 USD
CY2018 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
16333000000 USD
CY2016 us-gaap Share Based Compensation
ShareBasedCompensation
6703000000 USD
CY2016 us-gaap Share Based Compensation
ShareBasedCompensation
6700000000 USD
CY2017 us-gaap Share Based Compensation
ShareBasedCompensation
7679000000 USD
CY2017 us-gaap Share Based Compensation
ShareBasedCompensation
7700000000 USD
CY2018 us-gaap Share Based Compensation
ShareBasedCompensation
9353000000 USD
CY2016 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
298000000 USD
CY2017 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
212000000 USD
CY2018 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
148000000 USD
CY2016 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
3693000000 USD
CY2017 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
4846000000 USD
CY2018 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
9075000000 USD
CY2015Q4 us-gaap Stockholders Equity
StockholdersEquity
120331000000 USD
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
139036000000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
152502000000 USD
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
177628000000 USD
CY2018Q4 us-gaap Tax Credit Carryforward Amount
TaxCreditCarryforwardAmount
2400000000 USD
CY2015Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
4167000000 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
5393000000 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
5400000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
4700000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
4696000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
4652000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
4700000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
157000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
257000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
623000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
196000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
1875000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
191000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
362000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
490000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
680000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
750000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
449000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
899000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
685000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
321000000 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
4300000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
3000000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
2900000000 USD
CY2017Q4 us-gaap Variable Interest Entity Consolidated Assets Pledged
VariableInterestEntityConsolidatedAssetsPledged
1700000000 USD
CY2018Q4 us-gaap Variable Interest Entity Consolidated Assets Pledged
VariableInterestEntityConsolidatedAssetsPledged
2400000000 USD
CY2017Q4 us-gaap Variable Interest Entity Consolidated Liabilities No Recourse
VariableInterestEntityConsolidatedLiabilitiesNoRecourse
997000000 USD
CY2018Q4 us-gaap Variable Interest Entity Consolidated Liabilities No Recourse
VariableInterestEntityConsolidatedLiabilitiesNoRecourse
909000000 USD
CY2018 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:normal;font-weight:bold;text-decoration:none;">Certain Risks and Concentrations</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Our revenues are primarily derived from online advertising, the market for which is highly competitive and rapidly changing. In addition, our revenues are generated from a multitude of vertical market segments in countries around the world. Significant changes in this industry or changes in customer buying or advertiser spending behavior could adversely affect our operating results.</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We are subject to concentrations of credit risk principally from cash and cash equivalents, marketable securities, foreign exchange contracts, and accounts receivable. Cash equivalents and marketable securities consist primarily of time deposits, money market and other funds, highly liquid debt instruments of the U.S. government and its agencies, debt instruments issued by foreign governments, debt instruments issued by municipalities in the U.S., corporate debt securities,&#160;mortgage-backed securities, and asset-backed securities. Foreign exchange contracts are transacted with various financial institutions with high credit standing. Accounts receivable are typically unsecured and are derived from revenues earned from customers located around the world. We perform ongoing evaluations to determine customer credit and we limit the amount of credit we extend. We generally do not require collateral from our customers. We maintain reserves for estimated credit losses and these losses have generally been within our expectations.</font></div></div>
CY2018 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Prior Period Reclassifications</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Certain amounts in prior periods have been reclassified to conform with current period presentation.</font></div></div>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:normal;font-weight:bold;text-decoration:none;">Use of Estimates</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States (GAAP) requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the bad debt allowance, sales allowances, fair values of financial instruments, intangible assets and goodwill, useful lives of intangible assets and property and equipment, income taxes, and contingent liabilities, among others. We base our estimates on assumptions, both historical and forward looking, that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.</font></div></div>

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