2017 Q4 Form 10-Q Financial Statement

#000150630717000051 Filed on October 20, 2017

View on sec.gov

Income Statement

Concept 2017 Q4 2017 Q3 2016 Q3
Revenue $3.632B $3.281B $3.330B
YoY Change 7.17% -1.47% -10.17%
Cost Of Revenue $1.981B $1.007B $971.0M
YoY Change 23.58% 3.71% -12.21%
Gross Profit $1.651B $2.274B $2.359B
YoY Change -7.56% -3.6% -9.3%
Gross Profit Margin 45.46% 69.31% 70.84%
Selling, General & Admin $280.0M $270.0M $277.0M
YoY Change 29.63% -2.53% 3.36%
% of Gross Profit 16.96% 11.87% 11.74%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $564.0M $562.0M $549.0M
YoY Change 1.26% 2.37% -11.02%
% of Gross Profit 34.16% 24.71% 23.27%
Operating Expenses $843.0M $832.0M $825.0M
YoY Change 9.2% 0.85% -6.57%
Operating Profit $808.0M $826.0M $882.0M
YoY Change -20.32% -6.35% 22.33%
Interest Expense -$344.0M -$292.0M -$335.0M
YoY Change 28.36% -12.84% -21.36%
% of Operating Profit -42.57% -35.35% -37.98%
Other Income/Expense, Net $10.00M -$279.0M -$688.0M
YoY Change -183.33% -59.45% 60.0%
Pretax Income $324.0M $547.0M $194.0M
YoY Change -16.49% 181.96% -33.33%
Income Tax $2.556B $160.0M $377.0M
% Of Pretax Income 788.89% 29.25% 194.33%
Net Earnings -$1.006B $373.0M -$188.0M
YoY Change -581.34% -298.4% -201.08%
Net Earnings / Revenue -27.7% 11.37% -5.65%
Basic Earnings Per Share $0.15 -$0.10
Diluted Earnings Per Share -$451.1K $0.15 -$0.10
COMMON SHARES
Basic Shares Outstanding 2.233B shares 2.231B shares 2.230B shares
Diluted Shares Outstanding 2.231B shares 2.230B shares

Balance Sheet

Concept 2017 Q4 2017 Q3 2016 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $264.0M $539.0M $357.0M
YoY Change -61.4% 50.98% 99.44%
Cash & Equivalents $264.0M $539.0M $357.0M
Short-Term Investments
Other Short-Term Assets $238.0M $176.0M $230.0M
YoY Change -29.38% -23.48% -50.0%
Inventory $424.0M $428.0M $325.0M
Prepaid Expenses
Receivables $1.448B $1.194B $1.282B
Other Receivables $165.0M $20.00M $0.00
Total Short-Term Assets $2.715B $2.613B $3.363B
YoY Change -15.92% -22.3% 9.65%
LONG-TERM ASSETS
Property, Plant & Equipment $40.16B $39.87B $38.78B
YoY Change 3.75% 2.8% -4.5%
Goodwill $22.16B $22.16B $22.16B
YoY Change 0.05% 0.0% -11.18%
Intangibles $3.099B $3.153B $3.384B
YoY Change -6.6% -6.83% -6.49%
Long-Term Investments $7.298B $7.484B $7.358B
YoY Change 3.86% 1.71% 23.81%
Other Assets $1.582B $1.638B $1.961B
YoY Change 3.94% -16.47% -9.25%
Total Long-Term Assets $76.34B $77.74B $78.24B
YoY Change -0.95% -0.64% -5.29%
TOTAL ASSETS
Total Short-Term Assets $2.715B $2.613B $3.363B
Total Long-Term Assets $76.34B $77.74B $78.24B
Total Assets $79.06B $80.35B $81.60B
YoY Change -1.56% -1.54% -4.75%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.340B $1.358B $1.192B
YoY Change 6.6% 13.93% -2.77%
Accrued Expenses $0.00 $719.0M $918.0M
YoY Change -100.0% -21.68% 3.73%
Deferred Revenue $79.00M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $2.828B $3.156B $2.944B
YoY Change 4.9% 7.2% -1.96%
Total Short-Term Liabilities $6.181B $6.174B $6.044B
YoY Change 4.34% 2.15% -2.37%
LONG-TERM LIABILITIES
Long-Term Debt $35.02B $35.12B $38.52B
YoY Change -6.26% -8.83% -7.48%
Other Long-Term Liabilities $2.735B $2.537B $2.074B
YoY Change 22.92% 22.32% 2.98%
Total Long-Term Liabilities $37.75B $37.65B $40.59B
YoY Change -4.62% -7.24% -6.99%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.181B $6.174B $6.044B
Total Long-Term Liabilities $37.75B $37.65B $40.59B
Total Liabilities $43.93B $43.83B $46.64B
YoY Change -3.45% -6.02% -6.42%
SHAREHOLDERS EQUITY
Retained Earnings -$7.754B -$6.429B -$6.560B
YoY Change 16.27% -2.0% 54.64%
Common Stock $22.00M $22.00M $22.00M
YoY Change 0.0% 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $33.64B $35.23B $34.61B
YoY Change
Total Liabilities & Shareholders Equity $79.06B $80.35B $81.60B
YoY Change -1.56% -1.54% -4.75%

Cashflow Statement

Concept 2017 Q4 2017 Q3 2016 Q3
OPERATING ACTIVITIES
Net Income -$1.006B $373.0M -$188.0M
YoY Change -581.34% -298.4% -201.08%
Depreciation, Depletion And Amortization $564.0M $562.0M $549.0M
YoY Change 1.26% 2.37% -11.02%
Cash From Operating Activities $1.294B $1.141B $1.159B
YoY Change 3.11% -1.55% 19.61%
INVESTING ACTIVITIES
Capital Expenditures -$957.0M -$895.0M -$639.0M
YoY Change 23.8% 40.06% -41.38%
Acquisitions
YoY Change
Other Investing Activities $62.00M -$40.00M $1.472B
YoY Change -68.21% -102.72% 1214.29%
Cash From Investing Activities -$895.0M -$935.0M $833.0M
YoY Change 54.84% -212.24% -185.17%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -687.0M -159.0M -1.814B
YoY Change 125.25% -91.23% -6578.57%
NET CHANGE
Cash From Operating Activities 1.294B 1.141B 1.159B
Cash From Investing Activities -895.0M -935.0M 833.0M
Cash From Financing Activities -687.0M -159.0M -1.814B
Net Change In Cash -288.0M 47.00M 178.0M
YoY Change -177.42% -73.6% 836.84%
FREE CASH FLOW
Cash From Operating Activities $1.294B $1.141B $1.159B
Capital Expenditures -$957.0M -$895.0M -$639.0M
Free Cash Flow $2.251B $2.036B $1.798B
YoY Change 11.0% 13.24% -12.68%

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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Reclassification Adjustment From Aoci Realized Upon Sale Or Liquidation Net Of Tax
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us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Recent Accounting Pronouncements</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Topic 606</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On May 28, 2014, the FASB issued ASU No. 2014-09, &#8220;</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;">&#8221; followed by a series of related accounting standard updates (collectively referred to as &#8220;Topic 606&#8221;). Topic 606 is designed to create greater revenue recognition and disclosure comparability in financial statements. The provisions of Topic 606 include a five-step process by which an entity will determine revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which an entity expects to be entitled in exchange for those goods or services. Topic 606 requires certain disclosures about contracts with customers and provides more comprehensive guidance for transactions such as service revenue, contract modifications, and multiple-element arrangements.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are in the process of comparing our current revenue recognition policies to the requirements of Topic 606 for each of our revenue categories. While we have not identified any material differences in the amount and timing of revenue recognition for the categories we have reviewed to date, our evaluation is not complete, and we have not concluded on the overall impacts of adopting Topic 606. Topic 606 will require that our revenue recognition policy disclosure include further detail regarding our performance obligations as to the nature, amount, timing, and estimates of revenue and cash flows generated from our contracts with customers. Topic 606 will also require disclosure of significant changes in contract asset and contract liability balances period to period and the amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period, as applicable. We anticipate utilizing the modified retrospective method to adopt the provisions of this standard effective January 1, 2018, which requires us to apply the new revenue standard to (i) all new revenue contracts entered into after January 1, 2018 and (ii) all existing revenue contracts as of January 1, 2018 through a cumulative adjustment to equity. In accordance with this approach, our consolidated revenues for periods prior to January 1, 2018 will not be revised.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ASU No. 2015-11</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On July 22, 2015, the FASB issued ASU No. 2015-11, &#8220;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Inventory (Topic 330): Simplifying the Measurement of Inventory</font><font style="font-family:inherit;font-size:10pt;">.&#8221; This ASU requires entities to subsequently measure inventory at the lower of cost and net realizable value, and defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU No. 2015-11 was effective January 1, 2017. We adopted ASU No. 2015-11 with no material impact to our financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ASU No. 2016-02</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On February 25, 2016, the FASB issued ASU No. 2016-02, &#8220;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Leases (Topic 842)</font><font style="font-family:inherit;font-size:10pt;">.&#8221; This ASU requires that lessees will be required to recognize assets and liabilities on the balance sheet for the present value of the rights and obligations created by all leases with terms of more than 12 months. The ASU also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 will be effective for us as of January 1, 2019. We are currently reviewing the effect of ASU No. 2016-02.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ASU No. 2016-09</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On March 30, 2016, the FASB issued ASU No. 2016-09, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">&#8220;Compensation - Stock Compensation (Topic 718).&#8221; </font><font style="font-family:inherit;font-size:10pt;">This ASU was issued as part of the FASB&#8217;s simplification initiative and affects all entities that issue share-based payment awards to their employees. This ASU covers accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU No. 2016-09 was effective January 1, 2017. We adopted ASU No. 2016-09 with no material impact to our financial statements. See Note 8.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ASU No. 2016-13</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On June 16, 2016, the FASB issued ASU No. 2016-13, &#8220;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments</font><font style="font-family:inherit;font-size:10pt;">.&#8221; This ASU modifies the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. ASU No. 2016-13 will be effective for us as of January 1, 2020. We are currently reviewing the effect of ASU No. 2016-13.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ASU No. 2016-18</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On November 17, 2016, the FASB issued ASU No. 2016-18, &#8220;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).</font><font style="font-family:inherit;font-size:10pt;">&#8221; This ASU requires the statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents are to be included with cash and cash equivalents when reconciling the beginning of period and end of period amounts shown on the statement of cash flows.&#160; ASU No. 2016-18 will be effective for us as of January 1, 2018. We are currently reviewing the effect of this ASU to our financial statements.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ASU No. 2017-04</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On January 26, 2017, the FASB issued ASU No. 2017-04, &#8220;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Simplifying the Test for Goodwill Impairment (Topic 350)</font><font style="font-family:inherit;font-size:10pt;">&#8221; to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit&#8217;s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU No. 2017-04 will be effective for us as of January 1, 2020. We are currently reviewing the effect of this ASU to our financial statements.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ASU No. 2017-05</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On February 22, 2017, the FASB issued ASU No. 2017-05, &#8220;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets</font><font style="font-family:inherit;font-size:10pt;">.&#8221;&#160; This ASU clarifies the scope and accounting of a financial asset that meets the definition of an &#8220;in-substance nonfinancial asset&#8221; and defines the term &#8220;in-substance nonfinancial asset.&#8221;&#160; This ASU also adds guidance for partial sales of nonfinancial assets.&#160; ASU No. 2017-05 will be effective at the same time 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;">, is effective.&#160; We are currently reviewing the effect of this ASU to our financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ASU No. 2017-07</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On March 10, 2017, the FASB issued ASU No. 2017-07, &#8220;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Compensation - Retirement Benefits (Topic 715)</font><font style="font-family:inherit;font-size:10pt;">.&#8221; This ASU requires an employer to disaggregate the service cost component from the other components of net benefit cost, allow only the service cost component of net benefit cost to be eligible for capitalization, and how to present the service cost component and the other components of net benefit cost in the income statement. ASU No. 2017-07 will be effective for us as of January 1, 2018. We are currently reviewing the effect of this ASU to our financial statements.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ASU No. 2017-12</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On August 28, 2017, the FASB issued ASU No. 2017-12, &#8220;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities</font><font style="font-family:inherit;font-size:10pt;">.&#8221; This ASU amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. ASU No. 2017-12 will be effective for us as of January 1, 2019, and earlier adoption is permitted. We are currently reviewing the effect of this ASU to our financial statements.</font></div></div>

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