2022 Q4 Form 10-K Financial Statement

#000164559022000071 Filed on December 08, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022
Revenue $7.871B $28.50B
YoY Change 7.03% 2.56%
Cost Of Revenue $5.278B $18.99B
YoY Change 6.95% 3.16%
Gross Profit $2.593B $9.506B
YoY Change 7.19% 1.39%
Gross Profit Margin 32.94% 33.36%
Selling, General & Admin $1.262B $4.941B
YoY Change -1.41% 0.24%
% of Gross Profit 48.67% 51.98%
Research & Development $515.0M $2.045B
YoY Change 2.59% 3.34%
% of Gross Profit 19.86% 21.51%
Depreciation & Amortization $618.0M $2.480B
YoY Change -3.59% -4.51%
% of Gross Profit 23.83% 26.09%
Operating Expenses $1.850B $7.279B
YoY Change -0.54% 5.37%
Operating Profit $743.0M $2.227B
YoY Change 32.92% 96.73%
Interest Expense -$26.00M $27.00M
YoY Change -25.71% -94.61%
% of Operating Profit -3.5% 1.21%
Other Income/Expense, Net $28.00M $134.0M
YoY Change 40.0% -163.51%
Pretax Income -$357.0M $876.0M
YoY Change -113.28% -75.58%
Income Tax -$53.00M $8.000M
% Of Pretax Income 0.91%
Net Earnings -$304.0M $868.0M
YoY Change -111.91% -74.67%
Net Earnings / Revenue -3.86% 3.05%
Basic Earnings Per Share $0.67
Diluted Earnings Per Share -$234.6K $656.6K
COMMON SHARES
Basic Shares Outstanding 1.282B shares 1.303B shares
Diluted Shares Outstanding 1.322B shares

Balance Sheet

Concept 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.163B $4.163B
YoY Change 4.18% 4.18%
Cash & Equivalents $4.163B $4.163B
Short-Term Investments
Other Short-Term Assets $3.559B $3.559B
YoY Change 44.67% 44.67%
Inventory $5.161B $5.161B
Prepaid Expenses
Receivables $4.101B $4.101B
Other Receivables $3.522B $3.522B
Total Short-Term Assets $20.51B $20.51B
YoY Change 8.62% 8.62%
LONG-TERM ASSETS
Property, Plant & Equipment $5.784B $5.784B
YoY Change 3.05% -10.97%
Goodwill $17.40B
YoY Change -4.93%
Intangibles $733.0M
YoY Change -28.28%
Long-Term Investments $2.160B $2.160B
YoY Change -2.26% -2.26%
Other Assets $10.54B $5.171B
YoY Change -9.71% -10.04%
Total Long-Term Assets $36.62B $36.62B
YoY Change -5.68% -5.68%
TOTAL ASSETS
Total Short-Term Assets $20.51B $20.51B
Total Long-Term Assets $36.62B $36.62B
Total Assets $57.12B $57.12B
YoY Change -1.0% -1.0%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $8.717B $8.717B
YoY Change 24.46% 24.46%
Accrued Expenses $6.218B $6.218B
YoY Change -5.13% 6.38%
Deferred Revenue $3.451B
YoY Change 1.26%
Short-Term Debt $4.612B $736.0M
YoY Change 29.84% -21.62%
Long-Term Debt Due $4.612B $4.612B
YoY Change 76.5% 76.5%
Total Short-Term Liabilities $23.17B $23.17B
YoY Change 12.02% 12.02%
LONG-TERM LIABILITIES
Long-Term Debt $7.853B $7.853B
YoY Change -20.64% -20.64%
Other Long-Term Liabilities $6.187B $6.187B
YoY Change -12.85% -8.12%
Total Long-Term Liabilities $14.04B $14.04B
YoY Change -17.39% -15.57%
TOTAL LIABILITIES
Total Short-Term Liabilities $23.17B $23.17B
Total Long-Term Liabilities $14.04B $14.04B
Total Liabilities $37.26B $37.26B
YoY Change -1.12% -1.24%
SHAREHOLDERS EQUITY
Retained Earnings -$5.350B
YoY Change -4.41%
Common Stock $28.30B
YoY Change -0.6%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $19.86B $19.86B
YoY Change
Total Liabilities & Shareholders Equity $57.12B $57.12B
YoY Change -1.0% -1.0%

Cashflow Statement

Concept 2022 Q4 2022
OPERATING ACTIVITIES
Net Income -$304.0M $868.0M
YoY Change -111.91% -74.67%
Depreciation, Depletion And Amortization $618.0M $2.480B
YoY Change -3.59% -4.51%
Cash From Operating Activities $3.036B $4.593B
YoY Change 2.71% -21.77%
INVESTING ACTIVITIES
Capital Expenditures -$1.000B -$3.122B
YoY Change 29.87% 24.78%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities $137.0M $1.035B
YoY Change -144.34% -452.04%
Cash From Investing Activities -$863.0M -$2.087B
YoY Change -20.02% -25.36%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$135.0M -$565.0M
YoY Change -365.26%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.580B -1.796B
YoY Change -50.58% -46.61%
NET CHANGE
Cash From Operating Activities 3.036B 4.593B
Cash From Investing Activities -863.0M -2.087B
Cash From Financing Activities -1.580B -1.796B
Net Change In Cash 593.0M 710.0M
YoY Change -144.92% -345.67%
FREE CASH FLOW
Cash From Operating Activities $3.036B $4.593B
Capital Expenditures -$1.000B -$3.122B
Free Cash Flow $4.036B $7.715B
YoY Change 8.32% -7.86%

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<div style="margin-bottom:8pt;margin-top:8pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Use of Estimates</span></div><div style="margin-bottom:8pt;margin-top:8pt;text-align:justify;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements requires management to make estimates, judgments and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Estimates are assessed each period and updated to reflect current information, including those related to revenue recognition, stock-based compensation, net periodic benefit costs, restructuring accruals, provision for taxes, valuation allowance for deferred taxes, provision for expected credit losses, inventory reserves, and impairment assessments of goodwill, intangible assets and other long-lived assets. The Company </span></div>believes that these estimates, judgments and assumptions are reasonable under the circumstances, and are subject to significant uncertainties, some of which are beyond the Company's control. Should any of these estimates change, it could adversely affect the Company's results of operations. Actual results could differ materially from these estimates under different assumptions or conditions.
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<div style="margin-bottom:8pt;margin-top:8pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Concentrations of Risk</span></div><div style="margin-bottom:8pt;margin-top:8pt;text-align:justify;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents and restricted cash, investments, receivables from trade customers and contract manufacturers, financing receivables and derivatives.</span></div><div style="margin-bottom:8pt;margin-top:8pt;text-align:justify;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company maintains cash, cash equivalents and restricted cash, investments, derivatives, and certain other financial instruments with various financial institutions. These financial institutions are located in many different geographic regions, and the Company's policy is designed to limit exposure from any particular institution. As part of its risk management processes, the Company performs periodic evaluations of the relative credit standing of these financial institutions. The Company has not sustained material credit losses from instruments held at these financial institutions. The Company utilizes derivative contracts to protect against the effects of foreign currency and interest rate exposures. Such contracts involve the risk of non-performance by the counterparty, which could result in a material loss. For more details on the collateral program, see Note 13, "Financial Instruments".</span></div><div style="margin-bottom:8pt;margin-top:8pt;text-align:justify;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Credit risk with respect to accounts receivable from trade customers and financing receivables is generally diversified due to the large number of entities comprising the Company's customer base and their dispersion across many different industries and geographic regions. The Company performs ongoing credit evaluations of the financial condition of its customers and may require collateral, such as letters of credit and bank guarantees, in certain circumstances. As of October 31, 2022 and 2021 no single customer accounted for more than 10% of the Company's receivable from trade customers and financing receivables.</span></div><div style="margin-bottom:8pt;margin-top:8pt;text-align:justify;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company utilizes outsourced manufacturers around the world to manufacture company-designed products. The Company may purchase product components from suppliers and sell those components to its outsourced manufacturers thereby creating receivable balances from the outsourced manufacturers. The three largest outsourced manufacturer receivable balances collectively represented 94% and 92% of the Company's manufacturer receivables of $1.0 billion and $0.9 billion at October 31, 2022 and 2021, respectively. The Company includes the manufacturer receivables in Other current assets in the Consolidated Balance Sheets on a gross basis. The Company's credit risk associated with these receivables is mitigated wholly or in part by the amount the Company owes to these outsourced manufacturers, as the Company generally has the legal right to offset its payables to the outsourced manufacturers against these receivables. The Company does not reflect the sale of these components in revenue and does not recognize any profit on these component sales until the manufactured products are sold by the Company, at which time any profit is recognized as a reduction to cost of sales. The Company obtains certain components from single source suppliers due to technology, availability, price, quality or other considerations. The loss of a single source supplier, the deterioration of the Company's relationship with a single source supplier, or any unilateral modification to the contractual terms under which the Company is supplied components by a single source supplier could adversely affect the Company's revenue and gross margins.</span></div>
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