2019 Q2 Form 10-Q Financial Statement

#000004721719000034 Filed on May 30, 2019

View on sec.gov

Income Statement

Concept 2019 Q2 2018 Q2
Revenue $14.04B $14.00B
YoY Change 0.24% 13.06%
Cost Of Revenue $11.31B $11.30B
YoY Change 0.05% 12.99%
Gross Profit $2.729B $2.702B
YoY Change 1.0% 13.39%
Gross Profit Margin 19.44% 19.3%
Selling, General & Admin $1.339B $1.318B
YoY Change 1.59% 20.92%
% of Gross Profit 49.07% 48.78%
Research & Development $353.0M $356.0M
YoY Change -0.84% 13.38%
% of Gross Profit 12.94% 13.18%
Depreciation & Amortization $181.0M $127.0M
YoY Change 42.52% 42.7%
% of Gross Profit 6.63% 4.7%
Operating Expenses $1.692B $1.674B
YoY Change 1.08% 19.23%
Operating Profit $928.0M $906.0M
YoY Change 2.43% 10.76%
Interest Expense -$74.00M -$109.0M
YoY Change -32.11% 136.96%
% of Operating Profit -7.97% -12.03%
Other Income/Expense, Net -$45.00M -$823.0M
YoY Change -94.53% 1185.94%
Pretax Income $883.0M $83.00M
YoY Change 963.86% -88.99%
Income Tax $101.0M -$975.0M
% Of Pretax Income 11.44% -1174.7%
Net Earnings $782.0M $1.058B
YoY Change -26.09% 89.27%
Net Earnings / Revenue 5.57% 7.56%
Basic Earnings Per Share $0.51 $0.65
Diluted Earnings Per Share $0.51 $0.64
COMMON SHARES
Basic Shares Outstanding 1.529B shares 1.630B shares
Diluted Shares Outstanding 1.536B shares 1.646B shares

Balance Sheet

Concept 2019 Q2 2018 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.573B $5.330B
YoY Change -32.96% -14.35%
Cash & Equivalents $3.556B $4.247B
Short-Term Investments $17.00M $1.083B
Other Short-Term Assets $3.921B $5.024B
YoY Change -21.95% 41.44%
Inventory $5.394B $5.557B
Prepaid Expenses
Receivables $5.414B $4.605B
Other Receivables $2.688B $2.748B
Total Short-Term Assets $18.29B $19.43B
YoY Change -5.91% 6.18%
LONG-TERM ASSETS
Property, Plant & Equipment $2.412B $2.061B
YoY Change 17.03% 24.08%
Goodwill $6.349B $5.941B
YoY Change 6.87% 5.67%
Intangibles
YoY Change
Long-Term Investments $49.00M $33.00M
YoY Change 48.48%
Other Assets $4.900B $4.652B
YoY Change 5.33% 50.02%
Total Long-Term Assets $13.66B $12.65B
YoY Change 7.96% 21.86%
TOTAL ASSETS
Total Short-Term Assets $18.29B $19.43B
Total Long-Term Assets $13.66B $12.65B
Total Assets $31.95B $32.09B
YoY Change -0.44% 11.86%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $13.84B $13.05B
YoY Change 6.01% 17.83%
Accrued Expenses $7.626B $6.853B
YoY Change 11.28% 14.71%
Deferred Revenue $1.138B
YoY Change
Short-Term Debt $38.00M $1.080B
YoY Change -96.48% 3076.47%
Long-Term Debt Due $252.0M $537.0M
YoY Change -53.07% 606.58%
Total Short-Term Liabilities $23.20B $23.13B
YoY Change 0.33% 24.31%
LONG-TERM LIABILITIES
Long-Term Debt $4.749B $4.494B
YoY Change 5.67% -33.03%
Other Long-Term Liabilities $5.481B $6.329B
YoY Change -13.4% -13.62%
Total Long-Term Liabilities $5.481B $6.329B
YoY Change -13.4% -13.62%
TOTAL LIABILITIES
Total Short-Term Liabilities $23.20B $23.13B
Total Long-Term Liabilities $5.481B $6.329B
Total Liabilities $28.68B $29.46B
YoY Change -2.62% 13.59%
SHAREHOLDERS EQUITY
Retained Earnings -$1.325B -$1.075B
YoY Change 23.26% -61.32%
Common Stock $723.0M $510.0M
YoY Change 41.76% -2.11%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$1.487B -$1.863B
YoY Change
Total Liabilities & Shareholders Equity $31.95B $32.09B
YoY Change -0.44% 11.86%

Cashflow Statement

Concept 2019 Q2 2018 Q2
OPERATING ACTIVITIES
Net Income $782.0M $1.058B
YoY Change -26.09% 89.27%
Depreciation, Depletion And Amortization $181.0M $127.0M
YoY Change 42.52% 42.7%
Cash From Operating Activities $861.0M $1.050B
YoY Change -18.0% 130.77%
INVESTING ACTIVITIES
Capital Expenditures -$114.0M -$113.0M
YoY Change 0.88% 50.67%
Acquisitions
YoY Change
Other Investing Activities $410.0M $734.0M
YoY Change -44.14% -1017.5%
Cash From Investing Activities $296.0M $621.0M
YoY Change -52.33% -500.65%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $700.0M $800.0M
YoY Change -12.5% 300.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -968.0M -2.899B
YoY Change -66.61% 610.54%
NET CHANGE
Cash From Operating Activities 861.0M 1.050B
Cash From Investing Activities 296.0M 621.0M
Cash From Financing Activities -968.0M -2.899B
Net Change In Cash 189.0M -1.228B
YoY Change -115.39% 1037.04%
FREE CASH FLOW
Cash From Operating Activities $861.0M $1.050B
Capital Expenditures -$114.0M -$113.0M
Free Cash Flow $975.0M $1.163B
YoY Change -16.17% 119.43%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:4px;padding-top:4px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Reclassifications</font></div><div style="line-height:120%;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Effective at the beginning of its first quarter of fiscal year 2019, HP implemented an organizational change to align its business unit financial reporting more closely with its current business structure. HP reflected this change to its business unit information in prior reporting periods on an as-if basis. The reporting change had no impact to previously reported segment net revenue, consolidated net revenue, earnings from operations, net earnings or net earnings per share (&#8220;EPS&#8221;).</font></div><div style="line-height:120%;padding-bottom:4px;padding-top:4px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">HP has reclassified certain prior-year amounts to conform to the current-year presentation as a result of the adoption of Accounting Standards Update (&#8220;ASU&#8221;) 2017-07, &#8220;Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost&#8221;. This adoption had no impact on previously reported consolidated net revenue, net earnings or net EPS.</font></div><div style="line-height:120%;padding-bottom:4px;padding-top:4px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For detailed discussion, see Note 2, &#8220;Segment Information&#8221;.</font></div></div>
us-gaap Use Of Estimates
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:4px;padding-top:4px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:4px;padding-top:4px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in accordance with U.S.&#160;GAAP requires management to make estimates and assumptions that affect the amounts reported in HP&#8217;s Consolidated Condensed Financial Statements and accompanying notes. Actual results could differ materially from those estimates.</font></div></div>

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