2018 Q4 Form 10-K Financial Statement

#000005086319000007 Filed on February 01, 2019

View on sec.gov

Income Statement

Concept 2018 Q4 2017 Q4 2016 Q4
Revenue $18.66B $17.05B $15.78B
YoY Change 9.41% 8.08% 5.79%
Cost Of Revenue $7.430B $6.275B $5.795B
YoY Change 18.41% 8.28% 8.85%
Gross Profit $11.23B $10.78B $9.983B
YoY Change 4.17% 7.96% 4.1%
Gross Profit Margin 60.18% 63.2% 63.27%
Selling, General & Admin $1.520B $1.842B $2.006B
YoY Change -17.48% -8.18% -5.29%
% of Gross Profit 13.54% 17.09% 20.09%
Research & Development $3.433B $3.253B $3.069B
YoY Change 5.53% 6.0% -1.6%
% of Gross Profit 30.58% 30.18% 30.74%
Depreciation & Amortization $2.493B $2.140B $1.928B
YoY Change 16.5% 11.0% -10.16%
% of Gross Profit 22.21% 19.86% 19.31%
Operating Expenses $5.003B $5.148B $5.521B
YoY Change -2.82% -6.76% 4.09%
Operating Profit $6.224B $5.630B $4.462B
YoY Change 10.55% 26.18% 4.11%
Interest Expense -$491.0M $1.150B $180.0M
YoY Change -142.7% 538.89% -220.0%
% of Operating Profit -7.89% 20.43% 4.03%
Other Income/Expense, Net -$98.00M -$550.0M -$132.0M
YoY Change -82.18% 316.67% -185.71%
Pretax Income $5.635B $6.035B $4.318B
YoY Change -6.63% 39.76% 0.35%
Income Tax $446.0M $1.322B $940.0M
% Of Pretax Income 7.91% 21.91% 21.77%
Net Earnings $5.195B -$687.0M $3.378B
YoY Change -856.19% -120.34% -6.5%
Net Earnings / Revenue 27.84% -4.03% 21.41%
Basic Earnings Per Share $0.71
Diluted Earnings Per Share $1.124M -$146.7K $0.69
COMMON SHARES
Basic Shares Outstanding 4.734B shares
Diluted Shares Outstanding 4.877B shares

Balance Sheet

Concept 2018 Q4 2017 Q4 2016 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $5.807B $5.247B $8.785B
YoY Change 10.67% -40.27% -51.17%
Cash & Equivalents $3.019B $3.433B $5.560B
Short-Term Investments $2.788B $1.814B $3.225B
Other Short-Term Assets $3.162B $2.908B $2.956B
YoY Change 8.73% -1.62% -0.87%
Inventory $7.253B $6.983B $5.553B
Prepaid Expenses
Receivables $6.722B $5.607B $4.690B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $28.79B $29.50B $35.51B
YoY Change -2.42% -16.92% -7.34%
LONG-TERM ASSETS
Property, Plant & Equipment $48.98B $41.11B $36.17B
YoY Change 19.14% 13.65% 13.54%
Goodwill $24.51B $24.39B $14.10B
YoY Change 0.51% 72.98% 24.42%
Intangibles $11.84B $12.75B $9.494B
YoY Change -7.13% 34.24% 141.39%
Long-Term Investments $1.624B $1.774B $1.328B
YoY Change -8.46% 33.58% -16.48%
Other Assets $4.421B $3.215B $7.159B
YoY Change 37.51% -55.09% -12.32%
Total Long-Term Assets $99.18B $93.75B $77.82B
YoY Change 5.79% 20.47% 23.25%
TOTAL ASSETS
Total Short-Term Assets $28.79B $29.50B $35.51B
Total Long-Term Assets $99.18B $93.75B $77.82B
Total Assets $128.0B $123.2B $113.3B
YoY Change 3.82% 8.76% 11.7%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.824B $2.928B $2.475B
YoY Change 30.6% 18.3% 19.97%
Accrued Expenses $10.65B $10.30B $9.366B
YoY Change 3.32% 10.01% 9.56%
Deferred Revenue $0.00 $1.656B
YoY Change -100.0%
Short-Term Debt $0.00 $37.00M $4.634B
YoY Change -100.0% -99.2% 14381.25%
Long-Term Debt Due $761.0M $1.739B $4.609B
YoY Change -56.24% -62.27% 77.13%
Total Short-Term Liabilities $16.63B $17.42B $20.30B
YoY Change -4.56% -14.19% 29.76%
LONG-TERM LIABILITIES
Long-Term Debt $25.10B $25.04B $20.65B
YoY Change 0.24% 21.25% 3.06%
Other Long-Term Liabilities $2.646B $3.791B $3.538B
YoY Change -30.2% 7.15% 24.53%
Total Long-Term Liabilities $27.74B $28.83B $24.19B
YoY Change -3.76% 19.19% 5.73%
TOTAL LIABILITIES
Total Short-Term Liabilities $16.63B $17.42B $20.30B
Total Long-Term Liabilities $27.74B $28.83B $24.19B
Total Liabilities $44.37B $46.25B $44.49B
YoY Change -4.06% 3.96% 15.49%
SHAREHOLDERS EQUITY
Retained Earnings $50.17B $42.08B $40.75B
YoY Change 19.22% 3.28% 8.33%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $74.56B $69.65B $66.23B
YoY Change
Total Liabilities & Shareholders Equity $128.0B $123.2B $113.3B
YoY Change 3.82% 8.76% 11.7%

Cashflow Statement

Concept 2018 Q4 2017 Q4 2016 Q4
OPERATING ACTIVITIES
Net Income $5.195B -$687.0M $3.378B
YoY Change -856.19% -120.34% -6.5%
Depreciation, Depletion And Amortization $2.493B $2.140B $1.928B
YoY Change 16.5% 11.0% -10.16%
Cash From Operating Activities $6.900B $7.241B $5.758B
YoY Change -4.71% 25.76% 6.1%
INVESTING ACTIVITIES
Capital Expenditures -$3.890B -$4.069B -$2.463B
YoY Change -4.4% 65.21% 0.61%
Acquisitions
YoY Change
Other Investing Activities $2.070B -$1.161B -$220.0M
YoY Change -278.29% 427.73% -104.25%
Cash From Investing Activities -$1.820B -$5.230B -$2.683B
YoY Change -65.2% 94.93% -198.35%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -5.468B -7.653B -2.208B
YoY Change -28.55% 246.6% -2609.09%
NET CHANGE
Cash From Operating Activities 6.900B 7.241B 5.758B
Cash From Investing Activities -1.820B -5.230B -2.683B
Cash From Financing Activities -5.468B -7.653B -2.208B
Net Change In Cash -388.0M -5.642B 867.0M
YoY Change -93.12% -750.75% -89.48%
FREE CASH FLOW
Cash From Operating Activities $6.900B $7.241B $5.758B
Capital Expenditures -$3.890B -$4.069B -$2.463B
Free Cash Flow $10.79B $11.31B $8.221B
YoY Change -4.6% 37.57% 4.39%

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CY2018 us-gaap Cost Of Goods And Services Sold
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CY2017Q4 us-gaap Cumulative Effect Of New Accounting Principle In Period Of Adoption
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CY2017 us-gaap Current Federal Tax Expense Benefit
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CY2018 us-gaap Current Federal Tax Expense Benefit
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CY2016 us-gaap Current Foreign Tax Expense Benefit
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CY2017 us-gaap Current Foreign Tax Expense Benefit
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CY2018 us-gaap Current Foreign Tax Expense Benefit
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CY2016 us-gaap Current Income Tax Expense Benefit
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CY2017 us-gaap Current Income Tax Expense Benefit
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CY2018 us-gaap Current Income Tax Expense Benefit
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CY2017 us-gaap Current State And Local Tax Expense Benefit
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CY2018 us-gaap Current State And Local Tax Expense Benefit
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CY2017Q4 us-gaap Debt Current
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CY2018Q4 us-gaap Debt Current
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CY2018Q4 us-gaap Debt Instrument Carrying Amount
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CY2017Q4 us-gaap Debt Instrument Interest Rate Effective Percentage
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CY2018Q4 us-gaap Debt Instrument Repurchase Amount
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CY2017Q4 us-gaap Debt Instrument Unamortized Discount Premium And Debt Issuance Costs Net
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CY2018Q4 us-gaap Debt Instrument Unamortized Discount Premium And Debt Issuance Costs Net
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CY2017Q4 us-gaap Deferred Compensation Liability Current
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CY2018Q4 us-gaap Deferred Compensation Liability Current
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CY2017 us-gaap Deferred Income Tax Expense Benefit
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CY2018 us-gaap Deferred Income Tax Expense Benefit
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CY2018Q4 us-gaap Deferred Income Tax Liabilities
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CY2018Q4 us-gaap Deferred Tax Assets Inventory
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CY2018Q4 us-gaap Deferred Tax Assets Net
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CY2017Q4 us-gaap Deferred Tax Assets Net Noncurrent
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CY2018Q4 us-gaap Deferred Tax Assets Net Noncurrent
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CY2017Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits
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CY2018Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefits
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CY2017Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Share Based Compensation Cost
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CY2018Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Share Based Compensation Cost
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CY2017Q4 us-gaap Deferred Tax Assets Valuation Allowance
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CY2018Q4 us-gaap Deferred Tax Assets Valuation Allowance
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CY2018Q4 us-gaap Deferred Tax Liabilities
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881000000 USD
CY2018Q4 us-gaap Deferred Tax Liabilities Goodwill And Intangible Assets Intangible Assets
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744000000 USD
CY2017Q4 us-gaap Deferred Tax Liabilities Noncurrent
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CY2018Q4 us-gaap Deferred Tax Liabilities Noncurrent
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CY2018Q4 us-gaap Deferred Tax Liabilities Other
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CY2017Q4 us-gaap Deferred Tax Liabilities Property Plant And Equipment
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CY2018Q4 us-gaap Deferred Tax Liabilities Property Plant And Equipment
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CY2017Q4 us-gaap Deferred Tax Liabilities Undistributed Foreign Earnings
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1850000000 USD
CY2018Q4 us-gaap Deferred Tax Liabilities Undistributed Foreign Earnings
DeferredTaxLiabilitiesUndistributedForeignEarnings
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CY2017Q4 us-gaap Defined Benefit Plan Accumulated Other Comprehensive Income Before Tax
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CY2018Q4 us-gaap Defined Benefit Plan Accumulated Other Comprehensive Income Before Tax
DefinedBenefitPlanAccumulatedOtherComprehensiveIncomeBeforeTax
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CY2017 us-gaap Defined Benefit Plan Actual Return On Plan Assets
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CY2018 us-gaap Defined Benefit Plan Actual Return On Plan Assets
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CY2017 us-gaap Defined Benefit Plan Actuarial Gain Loss
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CY2018 us-gaap Defined Benefit Plan Actuarial Gain Loss
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CY2017Q4 us-gaap Defined Benefit Plan Amounts Recognized In Balance Sheet
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CY2018Q4 us-gaap Defined Benefit Plan Amounts Recognized In Balance Sheet
DefinedBenefitPlanAmountsRecognizedInBalanceSheet
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CY2017Q4 us-gaap Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Discount Rate
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0.030
CY2018Q4 us-gaap Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Discount Rate
DefinedBenefitPlanAssumptionsUsedCalculatingBenefitObligationDiscountRate
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CY2017Q4 us-gaap Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Rate Of Compensation Increase
DefinedBenefitPlanAssumptionsUsedCalculatingBenefitObligationRateOfCompensationIncrease
0.033
CY2018Q4 us-gaap Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Rate Of Compensation Increase
DefinedBenefitPlanAssumptionsUsedCalculatingBenefitObligationRateOfCompensationIncrease
0.035
CY2016 us-gaap Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Discount Rate
DefinedBenefitPlanAssumptionsUsedCalculatingNetPeriodicBenefitCostDiscountRate
0.033
CY2017 us-gaap Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Discount Rate
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0.032
CY2018 us-gaap Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Discount Rate
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0.030
CY2016 us-gaap Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets
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0.055
CY2017 us-gaap Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets
DefinedBenefitPlanAssumptionsUsedCalculatingNetPeriodicBenefitCostExpectedLongTermReturnOnAssets
0.046
CY2018 us-gaap Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets
DefinedBenefitPlanAssumptionsUsedCalculatingNetPeriodicBenefitCostExpectedLongTermReturnOnAssets
0.047
CY2016 us-gaap Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Rate Of Compensation Increase
DefinedBenefitPlanAssumptionsUsedCalculatingNetPeriodicBenefitCostRateOfCompensationIncrease
0.038
CY2017 us-gaap Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Rate Of Compensation Increase
DefinedBenefitPlanAssumptionsUsedCalculatingNetPeriodicBenefitCostRateOfCompensationIncrease
0.036
CY2018 us-gaap Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Rate Of Compensation Increase
DefinedBenefitPlanAssumptionsUsedCalculatingNetPeriodicBenefitCostRateOfCompensationIncrease
0.033
CY2016Q4 us-gaap Defined Benefit Plan Benefit Obligation
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CY2017Q4 us-gaap Defined Benefit Plan Benefit Obligation
DefinedBenefitPlanBenefitObligation
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CY2018Q4 us-gaap Defined Benefit Plan Benefit Obligation
DefinedBenefitPlanBenefitObligation
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CY2017 us-gaap Defined Benefit Plan Contributions By Employer
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471000000 USD
CY2018 us-gaap Defined Benefit Plan Contributions By Employer
DefinedBenefitPlanContributionsByEmployer
480000000 USD
CY2017 us-gaap Defined Benefit Plan Curtailments
DefinedBenefitPlanCurtailments
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CY2018 us-gaap Defined Benefit Plan Curtailments
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CY2018Q4 us-gaap Defined Benefit Plan Expected Future Benefit Payments Five Fiscal Years Thereafter
DefinedBenefitPlanExpectedFutureBenefitPaymentsFiveFiscalYearsThereafter
603000000 USD
CY2018Q4 us-gaap Defined Benefit Plan Expected Future Benefit Payments Next Twelve Months
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117000000 USD
CY2018Q4 us-gaap Defined Benefit Plan Expected Future Benefit Payments Year Five
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115000000 USD
CY2018Q4 us-gaap Defined Benefit Plan Expected Future Benefit Payments Year Four
DefinedBenefitPlanExpectedFutureBenefitPaymentsYearFour
115000000 USD
CY2018Q4 us-gaap Defined Benefit Plan Expected Future Benefit Payments Year Three
DefinedBenefitPlanExpectedFutureBenefitPaymentsYearThree
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CY2018Q4 us-gaap Defined Benefit Plan Expected Future Benefit Payments Year Two
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CY2016Q4 us-gaap Defined Benefit Plan Fair Value Of Plan Assets
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CY2017Q4 us-gaap Defined Benefit Plan Fair Value Of Plan Assets
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CY2018Q4 us-gaap Defined Benefit Plan Fair Value Of Plan Assets
DefinedBenefitPlanFairValueOfPlanAssets
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CY2017 us-gaap Defined Benefit Plan Foreign Currency Exchange Rate Changes Benefit Obligation
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CY2018Q4 us-gaap Defined Benefit Plan Funded Percentage
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CY2018 us-gaap Defined Benefit Plan Other Changes
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CY2017Q4 us-gaap Defined Benefit Plan Pension Plan With Projected Benefit Obligation In Excess Of Plan Assets Accumulated Benefit Obligation
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1965000000 USD
CY2017Q4 us-gaap Defined Benefit Plan Pension Plan With Projected Benefit Obligation In Excess Of Plan Assets Plan Assets
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2287000000 USD
CY2018Q4 us-gaap Defined Benefit Plan Pension Plan With Projected Benefit Obligation In Excess Of Plan Assets Plan Assets
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1106000000 USD
CY2017Q4 us-gaap Defined Benefit Plan Pension Plan With Projected Benefit Obligation In Excess Of Plan Assets Projected Benefit Obligation
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3842000000 USD
CY2018Q4 us-gaap Defined Benefit Plan Pension Plan With Projected Benefit Obligation In Excess Of Plan Assets Projected Benefit Obligation
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2232000000 USD
CY2017Q4 us-gaap Defined Benefit Plan Pension Plans With Accumulated Benefit Obligations In Excess Of Plan Assets Aggregate Fair Value Of Plan Assets
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2287000000 USD
CY2018Q4 us-gaap Defined Benefit Plan Pension Plans With Accumulated Benefit Obligations In Excess Of Plan Assets Aggregate Fair Value Of Plan Assets
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1106000000 USD
CY2018 us-gaap Defined Benefit Plan Plan Amendments
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CY2017 us-gaap Defined Benefit Plan Plan Assets Foreign Currency Translation Gain Loss
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124000000 USD
CY2018 us-gaap Defined Benefit Plan Plan Assets Foreign Currency Translation Gain Loss
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CY2017 us-gaap Defined Benefit Plan Service Cost
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CY2018 us-gaap Defined Benefit Plan Service Cost
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CY2018 us-gaap Defined Benefit Plan Settlements Benefit Obligation
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CY2018 us-gaap Defined Benefit Plan Settlements Plan Assets
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CY2016 us-gaap Depreciation
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CY2018 us-gaap Depreciation
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CY2016 us-gaap Depreciation And Amortization
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CY2018 us-gaap Depreciation And Amortization
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CY2017Q4 us-gaap Derivative Asset Fair Value Gross Liability
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CY2018Q4 us-gaap Derivative Asset Fair Value Gross Liability
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CY2017Q4 us-gaap Derivative Asset Fair Value Offset Against Collateral Net Of Not Subject To Master Netting Arrangement Policy Election
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CY2018Q4 us-gaap Derivative Asset Fair Value Offset Against Collateral Net Of Not Subject To Master Netting Arrangement Policy Election
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CY2017Q4 us-gaap Derivative Asset Not Offset Policy Election Deduction
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CY2018Q4 us-gaap Derivative Asset Not Offset Policy Election Deduction
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CY2017Q4 us-gaap Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed
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CY2018Q4 us-gaap Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Gross
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2391000000 USD
CY2017Q4 us-gaap Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Liability
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CY2018Q4 us-gaap Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Liability
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CY2017Q4 us-gaap Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Not Offset Policy Election Deduction
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206000000 USD
CY2018Q4 us-gaap Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Not Offset Policy Election Deduction
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220000000 USD
CY2017Q4 us-gaap Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Offset Against Collateral Net Of Not Subject To Master Netting Arrangement Policy Election
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14000000 USD
CY2018Q4 us-gaap Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Offset Against Collateral Net Of Not Subject To Master Netting Arrangement Policy Election
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100000000 USD
CY2017Q4 us-gaap Derivative Assets
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CY2018Q4 us-gaap Derivative Assets
DerivativeAssets
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CY2017Q4 us-gaap Derivative Collateral Obligation To Return Cash
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130000000 USD
CY2018Q4 us-gaap Derivative Collateral Obligation To Return Cash
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72000000 USD
CY2017Q4 us-gaap Derivative Collateral Right To Reclaim Cash
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CY2018Q4 us-gaap Derivative Collateral Right To Reclaim Cash
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576000000 USD
CY2017Q4 us-gaap Derivative Fair Value Of Derivative Asset
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350000000 USD
CY2018Q4 us-gaap Derivative Fair Value Of Derivative Asset
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292000000 USD
CY2017Q4 us-gaap Derivative Fair Value Of Derivative Liability
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745000000 USD
CY2018Q4 us-gaap Derivative Fair Value Of Derivative Liability
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890000000 USD
CY2017Q4 us-gaap Derivative Liabilities
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CY2018Q4 us-gaap Derivative Liabilities
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890000000 USD
CY2017Q4 us-gaap Derivative Liability Fair Value Gross Asset
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CY2018Q4 us-gaap Derivative Liability Fair Value Gross Asset
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0 USD
CY2017Q4 us-gaap Derivative Liability Fair Value Offset Against Collateral Net Of Not Subject To Master Netting Arrangement Policy Election
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35000000 USD
CY2018Q4 us-gaap Derivative Liability Fair Value Offset Against Collateral Net Of Not Subject To Master Netting Arrangement Policy Election
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94000000 USD
CY2017Q4 us-gaap Derivative Liability Not Offset Policy Election Deduction
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206000000 USD
CY2018Q4 us-gaap Derivative Liability Not Offset Policy Election Deduction
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220000000 USD
CY2016 us-gaap Disposal Group Not Discontinued Operation Gain Loss On Disposal
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CY2017 us-gaap Disposal Group Not Discontinued Operation Gain Loss On Disposal
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387000000 USD
CY2018 us-gaap Disposal Group Not Discontinued Operation Gain Loss On Disposal
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497000000 USD
CY2016 us-gaap Dividends Common Stock
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CY2017 us-gaap Dividends Common Stock
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CY2018 us-gaap Dividends Common Stock
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CY2016 us-gaap Earnings Per Share Basic
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2.18
CY2017 us-gaap Earnings Per Share Basic
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2.04
CY2018 us-gaap Earnings Per Share Basic
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4.57
CY2016 us-gaap Earnings Per Share Diluted
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2.12
CY2017 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.99
CY2018 us-gaap Earnings Per Share Diluted
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4.48
CY2016 us-gaap Effective Income Tax Rate Continuing Operations
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0.203
CY2017 us-gaap Effective Income Tax Rate Continuing Operations
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0.528
CY2018 us-gaap Effective Income Tax Rate Continuing Operations
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0.097
CY2016 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.350
CY2017 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.350
CY2018 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.210
CY2016 us-gaap Effective Income Tax Rate Reconciliation Deductions Qualified Production Activities
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0.014
CY2017 us-gaap Effective Income Tax Rate Reconciliation Deductions Qualified Production Activities
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0.013
CY2018 us-gaap Effective Income Tax Rate Reconciliation Deductions Qualified Production Activities
EffectiveIncomeTaxRateReconciliationDeductionsQualifiedProductionActivities
0.000
CY2016 us-gaap Effective Income Tax Rate Reconciliation Disposition Of Business
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0.000
CY2017 us-gaap Effective Income Tax Rate Reconciliation Disposition Of Business
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0.033
CY2018 us-gaap Effective Income Tax Rate Reconciliation Disposition Of Business
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0.000
CY2016 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
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-0.117
CY2017 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
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-0.076
CY2018 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
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-0.036
CY2016 us-gaap Effective Income Tax Rate Reconciliation Other Reconciling Items Percent
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0.007
CY2017 us-gaap Effective Income Tax Rate Reconciliation Other Reconciling Items Percent
EffectiveIncomeTaxRateReconciliationOtherReconcilingItemsPercent
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;font-size:12pt;"><font style="font-family:Arial;font-size:12pt;color:#0071c5;font-style:normal;font-weight:bold;text-decoration:none;">CREDIT RISK</font></div><div style="line-height:120%;padding-bottom:12px;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;color:#333333;">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:9pt;color:#333333;">We 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:9pt;"><font style="font-family:Arial;font-size:9pt;color:#333333;">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:9pt;color:#333333;">substantially all</font><font style="font-family:Arial;font-size:9pt;color:#333333;"> 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:9pt;color:#333333;">December&#160;29, 2018</font><font style="font-family:Arial;font-size:9pt;color:#333333;">, 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:9pt;color:#333333;">$750 million</font><font style="font-family:Arial;font-size:9pt;color:#333333;">. 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:9pt;"><font style="font-family:Arial;font-size:9pt;color:#333333;">A substantial majority</font><font style="font-family:Arial;font-size:9pt;color:#333333;font-weight:bold;"> </font><font style="font-family:Arial;font-size:9pt;color:#333333;">of our trade receivables are derived from sales to original equipment manufacturers (OEMs) and original design manufacturers (ODMs). 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:9pt;color:#333333;">45%</font><font style="font-family:Arial;font-size:9pt;color:#333333;"> as of </font><font style="font-family:Arial;font-size:9pt;color:#333333;">December&#160;29, 2018</font><font style="font-family:Arial;font-size:9pt;color:#333333;">) 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:9pt;color:#333333;">Note 4: Operating Segments</font><font style="font-family:Arial;font-size:9pt;color:#333333;">."</font></div><div style="line-height:120%;padding-bottom:12px;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;color:#333333;">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:9pt;color:#333333;">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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