2018 Q2 Form 10-Q Financial Statement

#000150630718000058 Filed on July 20, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q2
Revenue $3.428B $3.368B
YoY Change 1.78% 7.12%
Cost Of Revenue $1.068B $1.070B
YoY Change -0.19% 42.29%
Gross Profit $2.360B $2.298B
YoY Change 2.7% -3.93%
Gross Profit Margin 68.84% 68.23%
Selling, General & Admin $249.0M $244.0M
YoY Change 2.05% -18.39%
% of Gross Profit 10.55% 10.62%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $571.0M $577.0M
YoY Change -1.04% 4.53%
% of Gross Profit 24.19% 25.11%
Operating Expenses $818.0M $820.0M
YoY Change -0.24% -3.87%
Operating Profit $272.0M $918.0M
YoY Change -70.37% -2.34%
Interest Expense -$188.0M -$328.0M
YoY Change -42.68% -10.14%
% of Operating Profit -69.12% -35.73%
Other Income/Expense, Net -$448.0M -$319.0M
YoY Change 40.44% -9.38%
Pretax Income -$176.0M $599.0M
YoY Change -129.38% 1.87%
Income Tax -$46.00M $216.0M
% Of Pretax Income 36.06%
Net Earnings -$141.0M $376.0M
YoY Change -137.5% 1.08%
Net Earnings / Revenue -4.11% 11.16%
Basic Earnings Per Share -$0.08 $0.15
Diluted Earnings Per Share -$63.97K $0.15
COMMON SHARES
Basic Shares Outstanding 2.204B shares 2.230B shares
Diluted Shares Outstanding 2.230B shares

Balance Sheet

Concept 2018 Q2 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $271.0M $452.0M
YoY Change -40.04% 151.11%
Cash & Equivalents $271.0M $452.0M
Short-Term Investments
Other Short-Term Assets $254.0M $187.0M
YoY Change 35.83% -44.67%
Inventory $420.0M $438.0M
Prepaid Expenses
Receivables $1.357B $1.184B
Other Receivables $163.0M $169.0M
Total Short-Term Assets $2.634B $2.726B
YoY Change -3.37% 10.36%
LONG-TERM ASSETS
Property, Plant & Equipment $39.91B $39.42B
YoY Change 1.22% -4.31%
Goodwill $22.15B $22.16B
YoY Change -0.03% -6.9%
Intangibles $2.989B $3.208B
YoY Change -6.83% -6.74%
Long-Term Investments $7.293B $7.442B
YoY Change -2.0% 19.99%
Other Assets $1.388B $1.626B
YoY Change -14.64% -27.05%
Total Long-Term Assets $75.68B $77.48B
YoY Change -2.32% -5.34%
TOTAL ASSETS
Total Short-Term Assets $2.634B $2.726B
Total Long-Term Assets $75.68B $77.48B
Total Assets $78.32B $80.20B
YoY Change -2.35% -4.88%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.269B $1.353B
YoY Change -6.21% 24.47%
Accrued Expenses $890.0M $908.0M
YoY Change -1.98% -12.27%
Deferred Revenue $77.00M
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $2.132B $3.224B
YoY Change -33.87% -5.7%
Total Short-Term Liabilities $5.379B $6.363B
YoY Change -15.46% -3.09%
LONG-TERM LIABILITIES
Long-Term Debt $35.37B $35.10B
YoY Change 0.76% -12.69%
Other Long-Term Liabilities $2.495B $2.526B
YoY Change -1.23% 21.62%
Total Long-Term Liabilities $37.86B $37.63B
YoY Change 0.62% -11.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.379B $6.363B
Total Long-Term Liabilities $37.86B $37.63B
Total Liabilities $43.24B $43.99B
YoY Change -1.7% -9.94%
SHAREHOLDERS EQUITY
Retained Earnings -$7.993B -$6.482B
YoY Change 23.31% 7.09%
Common Stock $22.00M $22.00M
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $33.04B $35.15B
YoY Change
Total Liabilities & Shareholders Equity $78.32B $80.20B
YoY Change -2.35% -4.88%

Cashflow Statement

Concept 2018 Q2 2017 Q2
OPERATING ACTIVITIES
Net Income -$141.0M $376.0M
YoY Change -137.5% 1.08%
Depreciation, Depletion And Amortization $571.0M $577.0M
YoY Change -1.04% 4.53%
Cash From Operating Activities $1.494B $1.280B
YoY Change 16.72% -1.08%
INVESTING ACTIVITIES
Capital Expenditures -$766.0M -$672.0M
YoY Change 13.99% 1.97%
Acquisitions
YoY Change
Other Investing Activities $59.00M -$251.0M
YoY Change -123.51% 225.97%
Cash From Investing Activities -$707.0M -$923.0M
YoY Change -23.4% 25.41%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -801.0M -297.0M
YoY Change 169.7% -46.29%
NET CHANGE
Cash From Operating Activities 1.494B 1.280B
Cash From Investing Activities -707.0M -923.0M
Cash From Financing Activities -801.0M -297.0M
Net Change In Cash -14.00M 60.00M
YoY Change -123.33% 1100.0%
FREE CASH FLOW
Cash From Operating Activities $1.494B $1.280B
Capital Expenditures -$766.0M -$672.0M
Free Cash Flow $2.260B $1.952B
YoY Change 15.78% -0.05%

Facts In Submission

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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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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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<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: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;">Topic 842</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 a lessee recognizes 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.</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 25, 2018, the FASB issued ASU No. 2018-01, &#8220;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Land Easement Practical Expedient for Transition to Topic 842</font><font style="font-family:inherit;font-size:10pt;">.&#8221; This ASU permits an entity to elect a transition practical expedient that would not require companies to reconsider its accounting for existing or expired land easements before the adoption of Topic 842 and that were not previously accounted for as leases under Topic 840.</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 assessing contracts to identify leases based on the modified definition of a lease, selecting a lease accounting system, evaluating internal control changes to support management in the accounting for and disclosure of leasing activities, and assessing currently available and proposed transition practical expedients. Topic 842 will be effective for us as of January 1, 2019.</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. 2016-13</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 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. 2017-04</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. 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;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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