2017 Q3 Form 10-Q Financial Statement

#000081376217000026 Filed on August 08, 2017

View on sec.gov

Income Statement

Concept 2017 Q3 2017 Q2 2016 Q2
Revenue $3.406B $4.353B $4.350B
YoY Change -30.48% 0.07% -12.72%
Cost Of Revenue $2.054B $2.068B $3.448B
YoY Change -39.19% -40.02% 3.73%
Gross Profit $328.0M $259.0M $646.0M
YoY Change -37.64% -59.91% -1.37%
Gross Profit Margin 9.63% 5.95% 14.85%
Selling, General & Admin $323.0M $307.0M $615.0M
YoY Change -46.43% -50.08% 16.48%
% of Gross Profit 98.48% 118.53% 95.2%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $130.0M $136.0M $251.0M
YoY Change -49.61% -45.82% 20.1%
% of Gross Profit 39.63% 52.51% 38.85%
Operating Expenses $323.0M $307.0M $615.0M
YoY Change -46.43% -50.08% 16.48%
Operating Profit $5.000M -$48.00M $31.00M
YoY Change -106.49% -254.84% -75.59%
Interest Expense $164.0M $177.0M $202.0M
YoY Change -26.13% -12.38% -29.62%
% of Operating Profit 3280.0% 651.61%
Other Income/Expense, Net $19.00M -$1.000M $12.00M
YoY Change 35.71% -108.33% -36.84%
Pretax Income $818.0M $1.670B -$235.0M
YoY Change 223.32% -810.64% -135.93%
Income Tax $18.00M $3.000M $50.00M
% Of Pretax Income 2.2% 0.18%
Net Earnings $597.0M $1.553B -$69.00M
YoY Change -3831.25% -2350.72% -132.55%
Net Earnings / Revenue 17.53% 35.68% -1.59%
Basic Earnings Per Share
Diluted Earnings Per Share $3.530M $9.513M -$497.1K
COMMON SHARES
Basic Shares Outstanding 164.8M shares 160.2M shares 135.0M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q3 2017 Q2 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.037B $3.408B $2.614B
YoY Change 12.73% 30.37% -33.38%
Cash & Equivalents $2.038B $2.389B $1.920B
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory $3.256B $3.142B $2.861B
Prepaid Expenses
Receivables $1.853B $1.757B $1.796B
Other Receivables $1.006B $1.391B $0.00
Total Short-Term Assets $9.152B $9.698B $7.271B
YoY Change 24.08% 33.38% -12.29%
LONG-TERM ASSETS
Property, Plant & Equipment $9.631B $9.610B $11.44B
YoY Change -15.86% -16.01% 18.37%
Goodwill $1.199B $1.168B $1.188B
YoY Change 5.08% -1.68% -43.02%
Intangibles $1.072B $1.063B $1.138B
YoY Change -3.16% -6.59% -0.18%
Long-Term Investments $9.748B $9.302B $9.875B
YoY Change -2.39% -5.8% -31.74%
Other Assets $410.0M $549.0M
YoY Change
Total Long-Term Assets $23.67B $22.86B $25.28B
YoY Change -7.95% -9.57% -12.79%
TOTAL ASSETS
Total Short-Term Assets $9.152B $9.698B $7.271B
Total Long-Term Assets $23.67B $22.86B $25.28B
Total Assets $32.82B $32.56B $32.55B
YoY Change -0.81% 0.02% -12.68%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.696B $2.693B $4.210B
YoY Change -43.21% -36.03% -23.05%
Accrued Expenses $3.566B $3.440B $2.578B
YoY Change 44.08% 33.44% 0.08%
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 $6.262B $6.133B $6.788B
YoY Change -13.29% -9.65% -15.65%
LONG-TERM LIABILITIES
Long-Term Debt $11.20B $11.29B $12.97B
YoY Change -13.67% -12.98% 7.0%
Other Long-Term Liabilities $2.481B $2.951B $2.518B
YoY Change 2.78% 17.2% 7.51%
Total Long-Term Liabilities $13.68B $14.24B $15.49B
YoY Change -11.09% -8.08% 7.09%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.262B $6.133B $6.788B
Total Long-Term Liabilities $13.68B $14.24B $15.49B
Total Liabilities $21.62B $22.03B $23.95B
YoY Change -10.99% -8.04% 0.49%
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 $4.784B $4.231B $2.526B
YoY Change
Total Liabilities & Shareholders Equity $32.82B $32.56B $32.55B
YoY Change -0.81% 0.02% -12.68%

Cashflow Statement

Concept 2017 Q3 2017 Q2 2016 Q2
OPERATING ACTIVITIES
Net Income $597.0M $1.553B -$69.00M
YoY Change -3831.25% -2350.72% -132.55%
Depreciation, Depletion And Amortization $130.0M $136.0M $251.0M
YoY Change -49.61% -45.82% 20.1%
Cash From Operating Activities $195.0M -$486.0M $382.0M
YoY Change -40.91% -227.23% 12.68%
INVESTING ACTIVITIES
Capital Expenditures $102.0M $124.0M $211.0M
YoY Change -47.42% -41.23% -42.35%
Acquisitions
YoY Change
Other Investing Activities -$80.00M $989.0M -$93.00M
YoY Change -988.89% -1163.44% -83.21%
Cash From Investing Activities -$181.0M $988.0M -$304.0M
YoY Change -2.16% -425.0% -66.96%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -215.0M -170.0M -26.00M
YoY Change 264.41% 553.85% -80.74%
NET CHANGE
Cash From Operating Activities 195.0M -486.0M 382.0M
Cash From Investing Activities -181.0M 988.0M -304.0M
Cash From Financing Activities -215.0M -170.0M -26.00M
Net Change In Cash -201.0M 332.0M 52.00M
YoY Change -333.72% 538.46% -107.26%
FREE CASH FLOW
Cash From Operating Activities $195.0M -$486.0M $382.0M
Capital Expenditures $102.0M $124.0M $211.0M
Free Cash Flow $93.00M -$610.0M $171.0M
YoY Change -31.62% -456.73% -733.33%

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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 that include implementation guidance to principal versus agent considerations, guidance to identifying performance obligations and licensing guidance and other narrow scope improvements. We have developed an implementation plan to adopt this new ASU. As part of this plan, we are continuing to assess the impact of this new standard on our business processes, business and accounting systems, and consolidated financial statements and related disclosures. We expect to complete our assessment within the next several months after which we will initiate the design and implementation phases of the plan, including implementing any changes to existing business processes and systems to accommodate these new standards, during 2017. We will adopt these new standards on January 1, 2018 using the modified retrospective application method. To date, we have not identified any material differences in our existing revenue recognition methods that would require modification under the new 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 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 statements.</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 anticipate our assessment and implementation plan to be ongoing during the remainder of 2017 and into 2018 and are currently unable to reasonably estimate the impact of this guidance on our consolidated financial statements.</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. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early application is permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the impact of this guidance on our consolidated financial statements.</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 statements 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 November 2016, the FASB issued ASU No. 2016-18, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Restricted Cash</font><font style="font-family:inherit;font-size:10pt;">, 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 requires that the statement of cash flows explain the change during the period total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. 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 statements.</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 2017, the FASB issued ASU No. 2017-07, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost</font><font style="font-family:inherit;font-size:10pt;">, which amends FASB ASC Topic 715, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Compensation - Retirement Benefits</font><font style="font-family:inherit;font-size:10pt;">. This ASU requires entities to present the service cost component of net periodic benefit cost in the same line item or items in the financial statements as other compensation costs arising from services rendered by the pertinent employees during the period. 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 statements.</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 2017, the FASB issued ASU No. 2017-09, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Scope of Modification Accounting</font><font style="font-family:inherit;font-size:10pt;">, which amends FASB ASC Topic 718, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Compensation - Stock Compensation</font><font style="font-family:inherit;font-size:10pt;">. This ASU provides updated guidance about which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. 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 statements.</font></div></div>

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