2016 Q4 Form 10-Q Financial Statement

#000081376216000095 Filed on November 03, 2016

View on sec.gov

Income Statement

Concept 2016 Q4 2016 Q3 2015 Q3
Revenue $3.972B $4.899B $3.212B
YoY Change 54.85% 52.52% -27.36%
Cost Of Revenue -$3.112B $3.378B $3.224B
YoY Change -201.43% 4.78% -23.57%
Gross Profit $502.0M $526.0M $496.0M
YoY Change 84.56% 6.05% 46.31%
Gross Profit Margin 12.64% 10.74% 15.44%
Selling, General & Admin -$735.0M $603.0M $418.0M
YoY Change -251.55% 44.26% -3.02%
% of Gross Profit -146.41% 114.64% 84.27%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization -$222.0M $258.0M $217.0M
YoY Change -200.45% 18.89% 7.43%
% of Gross Profit -44.22% 49.05% 43.75%
Operating Expenses -$1.006B $603.0M $418.0M
YoY Change -256.21% 44.26% -3.02%
Operating Profit $1.508B -$77.00M $78.00M
YoY Change -505.38% -198.72% -184.78%
Interest Expense $24.00M $222.0M $296.0M
YoY Change -111.82% -25.0% 30.97%
% of Operating Profit 1.59% 379.49%
Other Income/Expense, Net -$25.00M $14.00M $37.00M
YoY Change -1350.0% -62.16% -17.78%
Pretax Income -$798.0M $253.0M -$918.0M
YoY Change -64.78% -127.56% 42.11%
Income Tax -$169.0M $15.00M $22.00M
% Of Pretax Income 5.93%
Net Earnings -$206.0M -$16.00M -$440.0M
YoY Change -81.72% -96.36% 23.94%
Net Earnings / Revenue -5.19% -0.33% -13.7%
Basic Earnings Per Share
Diluted Earnings Per Share -$1.448M -$113.6K -$3.357M
COMMON SHARES
Basic Shares Outstanding 141.7M shares 138.1M shares 126.6M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2016 Q4 2016 Q3 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.637B $2.694B $3.482B
YoY Change -21.52% -22.63% -20.52%
Cash & Equivalents $1.833B $2.002B $2.041B
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory $2.983B $2.957B $2.318B
Prepaid Expenses
Receivables $1.609B $1.725B $1.876B
Other Receivables $1.482B $0.00 $0.00
Total Short-Term Assets $8.711B $7.376B $7.676B
YoY Change 19.26% -3.91% -8.31%
LONG-TERM ASSETS
Property, Plant & Equipment $10.12B $11.45B $9.831B
YoY Change 6.16% 16.43% 11.63%
Goodwill $1.136B $1.141B $2.075B
YoY Change -24.47% -45.01% -1.47%
Intangibles $1.116B $1.107B $1.132B
YoY Change 0.72% -2.21% 1.71%
Long-Term Investments $9.881B $9.987B $13.66B
YoY Change -35.63% -26.89% -5.55%
Other Assets $1.366B
YoY Change 787.01%
Total Long-Term Assets $24.66B $25.71B $28.78B
YoY Change -15.27% -10.66% 3.41%
TOTAL ASSETS
Total Short-Term Assets $8.711B $7.376B $7.676B
Total Long-Term Assets $24.66B $25.71B $28.78B
Total Assets $33.37B $33.09B $36.45B
YoY Change -8.34% -9.24% 0.7%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.490B $4.747B $6.040B
YoY Change -37.14% -21.41% 11.93%
Accrued Expenses $1.895B $2.475B $2.057B
YoY Change 3.95% 20.32% 15.04%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $7.385B $7.222B $8.097B
YoY Change -30.04% -10.81% 12.71%
LONG-TERM LIABILITIES
Long-Term Debt $11.12B $12.97B $12.18B
YoY Change -11.71% 6.48% 5.76%
Other Long-Term Liabilities $5.237B $2.414B $2.549B
YoY Change 158.87% -5.3% 17.95%
Total Long-Term Liabilities $16.36B $15.39B $14.73B
YoY Change 11.9% 4.44% 7.68%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.385B $7.222B $8.097B
Total Long-Term Liabilities $16.36B $15.39B $14.73B
Total Liabilities $25.35B $24.29B $24.17B
YoY Change -3.87% 0.5% 8.24%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.154B $2.488B $5.140B
YoY Change
Total Liabilities & Shareholders Equity $33.37B $33.09B $36.45B
YoY Change -8.34% -9.24% 0.7%

Cashflow Statement

Concept 2016 Q4 2016 Q3 2015 Q3
OPERATING ACTIVITIES
Net Income -$206.0M -$16.00M -$440.0M
YoY Change -81.72% -96.36% 23.94%
Depreciation, Depletion And Amortization -$222.0M $258.0M $217.0M
YoY Change -200.45% 18.89% 7.43%
Cash From Operating Activities -$281.0M $330.0M $357.0M
YoY Change -224.34% -7.56% 63.01%
INVESTING ACTIVITIES
Capital Expenditures $368.0M $194.0M $338.0M
YoY Change -226.03% -42.6% -184.71%
Acquisitions
YoY Change
Other Investing Activities -$546.0M $9.000M -$28.00M
YoY Change 133.33% -132.14% -79.71%
Cash From Investing Activities -$178.0M -$185.0M -$366.0M
YoY Change -66.16% -49.45% -31.84%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -221.0M -59.00M -89.00M
YoY Change -163.51% -33.71% -248.33%
NET CHANGE
Cash From Operating Activities -281.0M 330.0M 357.0M
Cash From Investing Activities -178.0M -185.0M -366.0M
Cash From Financing Activities -221.0M -59.00M -89.00M
Net Change In Cash -680.0M 86.00M -98.00M
YoY Change -1516.67% -187.76% -62.02%
FREE CASH FLOW
Cash From Operating Activities -$281.0M $330.0M $357.0M
Capital Expenditures $368.0M $194.0M $338.0M
Free Cash Flow -$649.0M $136.0M $19.00M
YoY Change -225.29% 615.79% -96.93%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Recently Issued Accounting Standards </font></div><div style="line-height:120%;padding-top:8px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the FASB issued ASU No.&#160;2014-09, creating a new topic, FASB ASC Topic 606, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue from Contracts with Customers</font><font style="font-family:inherit;font-size:10pt;">, superseding revenue recognition requirements in FASB ASC Topic 605, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue Recognition</font><font style="font-family:inherit;font-size:10pt;">. This ASU requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. In addition, an entity is required to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This ASU was amended by ASU No. 2015-14, issued in August 2015, which deferred the original effective date by one year; the effective date of this ASU is for fiscal years, and interim reporting periods within those years, beginning after December 15, 2017, using one of two retrospective application methods. In addition, the FASB issued other amendments during 2016 to FASB ASC Topic 606, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue from Contracts with Customers</font><font style="font-family:inherit;font-size:10pt;">, that include implementation guidance to principal versus agent considerations, guidance to identifying performance obligations and licensing guidance and other narrow scope improvements. Early adoption is permitted only as of the annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Given the complexity of our operations, we continue to evaluate the impact of these guidance on our consolidated financial position, results of operations, comprehensive income, cash flows and disclosures. We will adopt these new guidance on January 1, 2018 using the modified retrospective application method.</font></div><div style="line-height:120%;padding-top:8px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In July 2015, the FASB issued ASU No.&#160;2015-11, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Simplifying the Measurement of Inventory</font><font style="font-family:inherit;font-size:10pt;">, which amends FASB ASC Topic 330, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Inventory</font><font style="font-family:inherit;font-size:10pt;">. This ASU requires entities to measure inventory at the lower of cost or net realizable value and eliminates the option that currently exists for measuring inventory at market value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This ASU should be applied prospectively with earlier application permitted as of the beginning of an interim period or annual reporting period. We anticipate that the adoption of this guidance will have minimal impact on our consolidated financial position, results of operations, comprehensive income, cash flows and disclosures.</font></div><div style="line-height:120%;padding-top:8px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2016, the FASB issued ASU No. 2016-01, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Financial Instruments - Overall</font><font style="font-family:inherit;font-size:10pt;">, which amends FASB ASC Topic 825, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Financial Instruments</font><font style="font-family:inherit;font-size:10pt;">. This ASU requires that equity investments (except those accounted for under the equity method of accounting or those that result in the consolidation of the investee) to be measured at fair value with changes recognized in earnings. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment. In addition, there were other amendments to certain disclosure and presentation matters pertaining to financial instruments, including the requirement of an entity to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments in this ASU should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values should be applied prospectively to equity investments that exist as of the date of adoption. Early application is permitted for certain matters only. We are currently evaluating the impact of this guidance on our consolidated financial position, results of operations, comprehensive income, cash flows and disclosures.</font></div><div style="line-height:120%;padding-top:8px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2016, the FASB issued ASU No. 2016-02, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Leases (Topic 842)</font><font style="font-family:inherit;font-size:10pt;">, which supersedes FASB ASC Topic 840, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Leases</font><font style="font-family:inherit;font-size:10pt;">. This ASU requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. In addition, among other changes to the accounting for leases, this ASU retains the distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous guidance. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The amendments in this ASU should be applied using a modified retrospective approach. Early application is permitted. We are currently evaluating the impact of this guidance on our consolidated financial position, results of operations, comprehensive income, cash flows and disclosures.</font></div><div style="line-height:120%;padding-top:8px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In March 2016, the FASB issued ASU No. 2016-07, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Simplifying the transition to equity method of accounting</font><font style="font-family:inherit;font-size:10pt;">, which amends FASB ASC Topic 323, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Investments - Equity Method and Joint Ventures</font><font style="font-family:inherit;font-size:10pt;">. This ASU eliminates the retroactive adjustment of an investment that qualifies for the equity method as a result of an increase in the level of ownership or degree of influence as if the equity method had been in effect during all previous periods that the investment had been held. The amendments in this ASU are effective for interim and annual fiscal years beginning after December 15, 2016. Earlier application is permitted. We anticipate that the adoption of this guidance will have minimal impact on our consolidated financial position, results of operations, comprehensive income, cash flows and disclosures.</font></div><div style="line-height:120%;padding-top:8px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In June 2016, the FASB issued ASU No. 2016-13, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Measurement of credit losses on financial instruments</font><font style="font-family:inherit;font-size:10pt;">, which amends FASB ASC Topic 326, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Financial Instruments - Credit Losses. </font><font style="font-family:inherit;font-size:10pt;">This ASU requires financial assets measured at amortized cost to be presented at the net amount to be collected and broadens the information, including forecasted information incorporating more timely information, that an entity must consider in developing its expected credit loss estimate for assets measured. We are currently evaluating the impact of this guidance on our consolidated financial position, results of operations, comprehensive income, cash flows and disclosures.</font></div><div style="line-height:120%;padding-top:8px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In August 2016, the FASB issued ASU No. 2016-15, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Classification of Certain Cash Receipts and Cash Payment</font><font style="font-family:inherit;font-size:10pt;">s, which amends FASB ASC Topic 230, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Statement of Cash Flows. </font><font style="font-family:inherit;font-size:10pt;">This ASU seeks to reduce the diversity currently in practice by providing guidance on the presentation of eight specific cash flow issues in the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We are currently evaluating the impact of this guidance on our consolidated statement of cash flows.</font></div><div style="line-height:120%;padding-top:8px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In October 2016, the FASB issued ASU No. 2016-16, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Intra-Entity Transfers of Assets Other Than Inventory</font><font style="font-family:inherit;font-size:10pt;">, which amends FASB ASC Topic 740, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Income Taxes</font><font style="font-family:inherit;font-size:10pt;">. This ASU requires the recognition of income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Current GAAP prohibits the recognition of current and deferred incomes taxes for an intra-entity asset transfer until the asset has been sold to an outside party. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial position, results of operations, comprehensive income, cash flows and disclosures.</font></div><div style="line-height:120%;padding-top:8px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In October 2016, the FASB issued ASU No. 2016-17, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Interests Held Through Related Parties That Are Under Common Control, </font><font style="font-family:inherit;font-size:10pt;">which amends FASB ASC Topic 810, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Consolidation</font><font style="font-family:inherit;font-size:10pt;">. This ASU requires that a reporting entity, in determining whether it satisfies the characteristics of a primary beneficiary, to include all of its direct variable interests in a VIE and, on a proportionate basis, its indirect variable interests in a VIE held through related parties, including related parties that are under common control with the reporting entity. Current GAAP requires that a single decision maker to consider indirect interests in the entity held through related parties to be the equivalent of direct interests in their entirety. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial position, results of operations, comprehensive income, cash flows and disclosures.</font></div><div style="line-height:120%;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;"></font></div></div>
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:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:#ffffff;font-style:italic;font-weight:bold;">Reclassifications</font></div><div style="line-height:120%;padding-top:8px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:#ffffff;">Certain reclassifications from the prior year presentation have been made to conform to the current year presentation.</font></div></div>

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