2017 Q1 Form 10-K Financial Statement

#000005086317000012 Filed on February 17, 2017

View on sec.gov

Income Statement

Concept 2017 Q1 2015 Q4 2014 Q4
Revenue $14.91B $14.72B
YoY Change 1.31% 6.41%
Cost Of Revenue $5.324B $5.100B
YoY Change 4.39% -3.1%
Gross Profit $9.590B $9.621B
YoY Change -0.32% 12.25%
Gross Profit Margin 64.3% 65.36%
Selling, General & Admin $2.118B $2.049B
YoY Change 3.37% 2.14%
% of Gross Profit 22.09% 21.3%
Research & Development $3.119B $2.990B
YoY Change 4.31% 5.8%
% of Gross Profit 32.52% 31.08%
Depreciation & Amortization $2.146B $2.174B
YoY Change -1.29% 11.15%
% of Gross Profit 22.38% 22.6%
Operating Expenses $5.304B $5.111B
YoY Change 3.78% 4.18%
Operating Profit $4.286B $4.510B
YoY Change -4.97% 23.06%
Interest Expense -$150.0M $213.0M
YoY Change -170.42% 2030.0%
% of Operating Profit -3.5% 4.72%
Other Income/Expense, Net $154.0M -$7.000M
YoY Change -2300.0% -12.5%
Pretax Income $4.303B $4.659B
YoY Change -7.64% 31.2%
Income Tax $690.0M $998.0M
% Of Pretax Income 16.04% 21.42%
Net Earnings $3.613B $3.661B
YoY Change -1.31% 39.47%
Net Earnings / Revenue 24.23% 24.87%
Basic Earnings Per Share
Diluted Earnings Per Share $741.0K $741.2K
COMMON SHARES
Basic Shares Outstanding 4.728B shares 4.719B shares 4.835B shares
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q1 2015 Q4 2014 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $17.99B $4.991B
YoY Change 260.45% -57.14%
Cash & Equivalents $15.31B $2.561B
Short-Term Investments $2.682B $2.430B
Other Short-Term Assets $2.982B $3.018B
YoY Change -1.19% 83.02%
Inventory $5.167B $4.273B
Prepaid Expenses
Receivables $4.787B $4.427B
Other Receivables $0.00 $0.00
Total Short-Term Assets $38.32B $27.73B
YoY Change 38.19% -13.57%
LONG-TERM ASSETS
Property, Plant & Equipment $31.86B $33.24B
YoY Change -4.15% 5.76%
Goodwill $11.33B $10.86B
YoY Change 4.34% 3.31%
Intangibles $3.933B $4.446B
YoY Change -11.54% -13.67%
Long-Term Investments $1.590B $1.446B
YoY Change 9.96% 39.31%
Other Assets $8.165B $6.505B
YoY Change 25.52% 18.51%
Total Long-Term Assets $63.14B $64.17B
YoY Change -1.61% 6.46%
TOTAL ASSETS
Total Short-Term Assets $38.32B $27.73B
Total Long-Term Assets $63.14B $64.17B
Total Assets $101.5B $91.90B
YoY Change 10.4% -0.5%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.063B $2.748B
YoY Change -24.93% -7.44%
Accrued Expenses $8.549B $8.899B
YoY Change -3.93% 13.36%
Deferred Revenue
YoY Change
Short-Term Debt $32.00M $508.0M
YoY Change -93.7%
Long-Term Debt Due $2.602B $1.088B
YoY Change 139.15%
Total Short-Term Liabilities $15.65B $16.01B
YoY Change -2.28% 18.01%
LONG-TERM LIABILITIES
Long-Term Debt $20.04B $12.06B
YoY Change 66.15% -8.4%
Other Long-Term Liabilities $2.841B $3.278B
YoY Change -13.33% 10.3%
Total Long-Term Liabilities $22.88B $15.34B
YoY Change 49.16% -4.96%
TOTAL LIABILITIES
Total Short-Term Liabilities $15.65B $16.01B
Total Long-Term Liabilities $22.88B $15.34B
Total Liabilities $38.52B $31.35B
YoY Change 22.89% 5.53%
SHAREHOLDERS EQUITY
Retained Earnings $37.61B $33.42B
YoY Change 12.56% -5.8%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $61.09B $55.87B
YoY Change
Total Liabilities & Shareholders Equity $101.5B $91.90B
YoY Change 10.4% -0.5%

Cashflow Statement

Concept 2017 Q1 2015 Q4 2014 Q4
OPERATING ACTIVITIES
Net Income $3.613B $3.661B
YoY Change -1.31% 39.47%
Depreciation, Depletion And Amortization $2.146B $2.174B
YoY Change -1.29% 11.15%
Cash From Operating Activities $5.427B $5.771B
YoY Change -5.96% -4.42%
INVESTING ACTIVITIES
Capital Expenditures -$2.448B -$2.235B
YoY Change 9.53% -24.19%
Acquisitions
YoY Change
Other Investing Activities $5.176B $331.0M
YoY Change 1463.75% -134.02%
Cash From Investing Activities $2.728B -$1.904B
YoY Change -243.28% -51.44%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 88.00M -4.439B
YoY Change -101.98% 235.78%
NET CHANGE
Cash From Operating Activities 5.427B 5.771B
Cash From Investing Activities 2.728B -1.904B
Cash From Financing Activities 88.00M -4.439B
Net Change In Cash 8.243B -572.0M
YoY Change -1541.08% -171.95%
FREE CASH FLOW
Cash From Operating Activities $5.427B $5.771B
Capital Expenditures -$2.448B -$2.235B
Free Cash Flow $7.875B $8.006B
YoY Change -1.64% -10.91%

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CY2016 us-gaap Goodwill Transfers
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CY2015Q4 us-gaap Preferred Stock Shares Authorized
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CY2016Q4 us-gaap Preferred Stock Shares Authorized
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CY2016Q4 us-gaap Preferred Stock Shares Issued
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CY2015Q4 us-gaap Preferred Stock Value
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CY2016Q4 us-gaap Preferred Stock Value
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CY2015 us-gaap Proceeds From Issuance Of Long Term Debt
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21.65
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CY2016 us-gaap Concentration Risk Credit Risk
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:6px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;color:#0860a8;font-style:italic;font-weight:bold;">Credit Risk</font></div><div style="line-height:120%;padding-bottom:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Financial instruments that potentially subject us to concentrations of credit risk consist principally of investments in debt instruments, derivative financial instruments, loans receivable, reverse repurchase agreements, and trade receivables. </font><font style="font-family:Arial;font-size:10pt;">We may enter into master netting arrangements to mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty.</font></div><div style="line-height:120%;padding-bottom:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We generally place investments with high-credit-quality counterparties and, by policy, we limit the amount of credit exposure to any one counterparty based on our analysis of that counterparty&#8217;s relative credit standing. As required per our investment policy, </font><font style="font-family:Arial;font-size:10pt;">substantially all</font><font style="font-family:Arial;font-size:10pt;"> of our investments in debt instruments and financing receivables are in investment-grade instruments. Credit-rating criteria for derivative instruments are similar to those for other investments. Due to master netting arrangements, the amounts subject to credit risk related to derivative instruments are generally limited to the amounts, if any, by which the counterparty&#8217;s obligations exceed our obligations with that counterparty. As of </font><font style="font-family:Arial;font-size:10pt;color:#000000;text-decoration:none;">December&#160;31, 2016</font><font style="font-family:Arial;font-size:10pt;">, our total credit exposure to any single counterparty, excluding money market funds invested in U.S. treasury and U.S. agency securities and reverse repurchase agreements collateralized by treasury and agency securities, did not exceed </font><font style="font-family:Arial;font-size:10pt;color:#000000;text-decoration:none;">$700 million</font><font style="font-family:Arial;font-size:10pt;">. To further reduce credit risk, we obtain and secure available collateral from counterparties against obligations, including securities lending transactions, when we deem it appropriate.</font></div><div style="line-height:120%;padding-bottom:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">A substantial majority</font><font style="font-family:Arial;font-size:10pt;font-weight:bold;"> </font><font style="font-family:Arial;font-size:10pt;">of our trade receivables are derived from sales to original equipment manufacturers and original design manufacturers. We also have accounts receivable derived from sales to industrial and communications equipment manufacturers in the computing and communications industries. We believe that the net accounts receivable balances from our three largest customers (</font><font style="font-family:Arial;font-size:10pt;">31%</font><font style="font-family:Arial;font-size:10pt;"> in </font><font style="font-family:Arial;font-size:10pt;color:#000000;text-decoration:none;">2016</font><font style="font-family:Arial;font-size:10pt;">) do not represent a significant credit risk, based on cash flow forecasts, balance sheet analysis, and past collection experience. For more information about the customers that represent our accounts receivable balance, see "</font><font style="font-family:Arial;font-size:10pt;">Note 4: Operating Segments and Geographic Information</font><font style="font-family:Arial;font-size:10pt;">" in Part II, Item 8 of this Form 10-K.</font></div><div style="line-height:120%;padding-bottom:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We have adopted credit policies and standards intended to accommodate industry growth and inherent risk. We believe that credit risks are moderated by the financial stability of our major customers. </font><font style="font-family:Arial;font-size:10pt;">We assess credit risk through quantitative and qualitative analysis. From this analysis, we establish shipping and credit limits, and determine whether we will seek to use one or more credit support protection devices, such as obtaining a parent guarantee, standby letter of credit, or credit insurance.</font></div></div>

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