2018 Form 10-K Financial Statement

#000000357019000030 Filed on February 26, 2019

View on sec.gov

Income Statement

Concept 2018 2017 Q4 2017 Q3
Revenue $7.987B $1.746B $1.403B
YoY Change 42.6% 205.24% 201.72%
Cost Of Revenue $4.597B $1.042B $824.0M
YoY Change 47.34% 224.0% 225.69%
Gross Profit $3.390B $704.0M $579.0M
YoY Change 36.64% 181.6% 173.11%
Gross Profit Margin 42.44% 40.32% 41.27%
Selling, General & Admin $289.0M $77.00M $64.00M
YoY Change 12.89% 22.81% 8.47%
% of Gross Profit 8.53% 10.94% 11.05%
Research & Development $7.000M $3.000M
YoY Change -30.0% 50.0%
% of Gross Profit 0.21% 0.52%
Depreciation & Amortization $449.0M $104.0M $92.00M
YoY Change 26.12% 52.94% 87.76%
% of Gross Profit 13.24% 14.77% 15.89%
Operating Expenses $5.963B $184.0M $1.106B
YoY Change 41.54% 36.9% 145.78%
Operating Profit $2.024B $441.0M $297.0M
YoY Change 45.82% 261.48% 1880.0%
Interest Expense $875.0M -$239.0M $186.0M
YoY Change 17.14% -355.34% 25.68%
% of Operating Profit 43.23% -54.2% 62.63%
Other Income/Expense, Net -$797.0M $7.000M -$209.0M
YoY Change -3.04% 22.81% 45.14%
Pretax Income $1.227B $284.0M $88.00M
YoY Change 116.78% 89.97% -168.22%
Income Tax $27.00M -$400.0M -$2.000M
% Of Pretax Income 2.2% -140.85% -2.27%
Net Earnings $471.0M $127.0M -$289.0M
YoY Change -219.85% 15.45% 186.14%
Net Earnings / Revenue 5.9% 7.27% -20.6%
Basic Earnings Per Share $1.92 -$1.24
Diluted Earnings Per Share $1.90 $540.7K -$1.24
COMMON SHARES
Basic Shares Outstanding 245.6M shares 237.7M shares 232.6M shares
Diluted Shares Outstanding 248.0M shares 232.6M shares

Balance Sheet

Concept 2018 2017 Q4 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $981.0M $722.0M $919.0M
YoY Change 35.87% -17.58% -7.17%
Cash & Equivalents $981.0M $722.0M $919.0M
Short-Term Investments
Other Short-Term Assets $2.352B $96.00M $112.0M
YoY Change 15.69% -4.0% 62.25%
Inventory $316.0M $243.0M $133.0M
Prepaid Expenses
Receivables $535.0M $185.0M $154.0M
Other Receivables $50.00M $186.0M $111.0M
Total Short-Term Assets $4.234B $3.369B $3.031B
YoY Change 25.68% 50.54% 44.01%
LONG-TERM ASSETS
Property, Plant & Equipment $27.25B $23.98B $23.47B
YoY Change 13.62% 16.2% 17.97%
Goodwill $77.00M $77.00M
YoY Change 0.0% 0.24%
Intangibles
YoY Change
Long-Term Investments $94.00M $64.00M $64.00M
YoY Change 46.88% 540.0% 478.77%
Other Assets $316.0M $288.0M $298.0M
YoY Change -18.77% -4.64% 6.64%
Total Long-Term Assets $27.75B $24.54B $24.10B
YoY Change 13.11% 14.31% 17.09%
TOTAL ASSETS
Total Short-Term Assets $4.234B $3.369B $3.031B
Total Long-Term Assets $27.75B $24.54B $24.10B
Total Assets $31.99B $27.91B $27.13B
YoY Change 14.62% 17.73% 19.59%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $58.00M $25.00M $59.00M
YoY Change 132.0% -48.98% 52.97%
Accrued Expenses $1.169B $1.078B $722.0M
YoY Change 8.44% 69.23% 3.14%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $239.0M $0.00 $41.00M
YoY Change -100.0%
Total Short-Term Liabilities $1.742B $1.251B $1.011B
YoY Change 39.25% 16.16% -61.25%
LONG-TERM LIABILITIES
Long-Term Debt $28.24B $25.34B $24.92B
YoY Change 11.44% 16.82% 30.94%
Other Long-Term Liabilities $80.00M $60.00M $63.00M
YoY Change 2.56% 22.45% -4.33%
Total Long-Term Liabilities $28.32B $25.40B $24.99B
YoY Change 11.41% 16.83% 30.82%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.742B $1.251B $1.011B
Total Long-Term Liabilities $28.32B $25.40B $24.99B
Total Liabilities $32.51B $26.65B $26.00B
YoY Change 9.58% 16.8% 19.76%
SHAREHOLDERS EQUITY
Retained Earnings -$4.627B -$4.754B
YoY Change 9.28% 9.45%
Common Stock $0.00 $0.00
YoY Change -100.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $386.0M $378.0M
YoY Change 3.21% 1.47%
Treasury Stock Shares 12.50M shares 12.30M shares
Shareholders Equity -$526.0M -$1.764B -$1.893B
YoY Change
Total Liabilities & Shareholders Equity $31.99B $27.91B $27.13B
YoY Change 14.62% 17.73% 19.59%

Cashflow Statement

Concept 2018 2017 Q4 2017 Q3
OPERATING ACTIVITIES
Net Income $471.0M $127.0M -$289.0M
YoY Change -219.85% 15.45% 186.14%
Depreciation, Depletion And Amortization $449.0M $104.0M $92.00M
YoY Change 26.12% 52.94% 87.76%
Cash From Operating Activities $1.990B $336.0M $359.0M
YoY Change 61.66% -496.23% -305.14%
INVESTING ACTIVITIES
Capital Expenditures $3.643B -$454.0M -$565.0M
YoY Change 8.52% -49.92% -51.77%
Acquisitions
YoY Change
Other Investing Activities -$14.00M -$1.000M -$4.000M
YoY Change -17.65% -87.18% -99.83%
Cash From Investing Activities -$3.654B -$455.0M -$569.0M
YoY Change 8.07% -50.24% -83.65%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $2.207B 157.0M 241.0M
YoY Change -24.83% -83.92% -93.85%
NET CHANGE
Cash From Operating Activities $1.990B 336.0M 359.0M
Cash From Investing Activities -$3.654B -455.0M -569.0M
Cash From Financing Activities $2.207B 157.0M 241.0M
Net Change In Cash $543.0M 38.00M 31.00M
YoY Change -30.92% -268.14% -88.28%
FREE CASH FLOW
Cash From Operating Activities $1.990B $336.0M $359.0M
Capital Expenditures $3.643B -$454.0M -$565.0M
Free Cash Flow -$1.653B $790.0M $924.0M
YoY Change -22.25% -3.87% -7.28%

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CY2018Q4 us-gaap Deferred Revenue Current
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CY2017 us-gaap Deferred State And Local Income Tax Expense Benefit
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CY2018 us-gaap Deferred State And Local Income Tax Expense Benefit
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46000000 USD
CY2018Q4 us-gaap Deferred Tax Assets Deferred Income
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50000000 USD
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391000000 USD
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375000000 USD
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CY2018Q4 us-gaap Deferred Tax Liabilities Other
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11000000 USD
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6000000 USD
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6000000 USD
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7000000 USD
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9000000 USD
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0.06
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CY2018 us-gaap Depreciation
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174000000 USD
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356000000 USD
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449000000 USD
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57000000 USD
CY2018Q4 us-gaap Derivative Assets Current
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63000000 USD
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34000000 USD
CY2018Q4 us-gaap Derivative Assets Noncurrent
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54000000 USD
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28000000 USD
CY2017 us-gaap Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
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CY2018 us-gaap Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
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37000000 USD
CY2018Q4 us-gaap Derivative Liabilities Current
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128000000 USD
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19000000 USD
CY2018Q4 us-gaap Derivative Liabilities Noncurrent
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22000000 USD
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1.52
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1.92
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0.23
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CY2018Q1 us-gaap Earnings Per Share Diluted
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0
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0
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0
CY2018Q4 us-gaap Earnings Per Share Diluted
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0.26
CY2018 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.90
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CY2017 us-gaap Effective Income Tax Rate Continuing Operations
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0.005
CY2018 us-gaap Effective Income Tax Rate Continuing Operations
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0.022
CY2016 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
CY2018 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.21
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-0.275
CY2017 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
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-1.097
CY2018 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
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-0.098
CY2016 us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate
0.000
CY2017 us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate
0.714
CY2018 us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate
0.000
CY2016 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
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-0.012
CY2017 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
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-0.007
CY2018 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
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-0.011
CY2016 us-gaap Effective Income Tax Rate Reconciliation Minority Interest Income Expense
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-0.021
CY2017 us-gaap Effective Income Tax Rate Reconciliation Minority Interest Income Expense
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0.029
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CY2017 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense Other
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0.085
CY2018 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense Other
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0.026
CY2016 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense Share Based Compensation Cost
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0.000
CY2017 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense Share Based Compensation Cost
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-0.062
CY2018 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense Share Based Compensation Cost
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-0.005
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0.003
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CY2018 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
EffectiveIncomeTaxRateReconciliationOtherAdjustments
0.004
CY2016 us-gaap Effective Income Tax Rate Reconciliation Repatriation Of Foreign Earnings
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0.000
CY2017 us-gaap Effective Income Tax Rate Reconciliation Repatriation Of Foreign Earnings
EffectiveIncomeTaxRateReconciliationRepatriationOfForeignEarnings
0.000
CY2018 us-gaap Effective Income Tax Rate Reconciliation Repatriation Of Foreign Earnings
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0.014
CY2016 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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0.018
CY2017 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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CY2018 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes
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CY2017Q4 us-gaap Employee Related Liabilities Current
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23000000 USD
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24000000 USD
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CY2017 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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5000000 USD
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CY2017Q4 us-gaap Equity Method Investments
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94000000 USD
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7000000 USD
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57000000 USD
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45000000 USD
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106000000 USD
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CY2018 us-gaap Gain Loss On Sales Of Assets And Asset Impairment Charges
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77000000 USD
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CY2018 us-gaap Impairment Of Long Lived Assets Held For Use
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CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
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30000000 USD
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997000000 USD
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566000000 USD
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1227000000 USD
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536000000 USD
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230000000 USD
CY2016 us-gaap Income Tax Expense Benefit
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3000000 USD
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27000000 USD
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207000000 USD
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139000000 USD
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131000000 USD
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64000000 USD
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225000000 USD
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188000000 USD
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0 USD
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2000000 USD
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42000000 USD
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34000000 USD
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26000000 USD
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119000000 USD
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73000000 USD
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73000000 USD
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12000000 USD
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39000000 USD
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16000000 USD
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779000000 USD
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803000000 USD
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1301000000 USD
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1526000000 USD
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1678000000 USD
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488000000 USD
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747000000 USD
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875000000 USD
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305000000 USD
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397000000 USD
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233000000 USD
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86000000 USD
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199000000 USD
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335000000 USD
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31987000000 USD
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1742000000 USD
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23236000000 USD
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239000000 USD
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1500000000 USD
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1000000000 USD
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3218000000 USD
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0 USD
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28179000000 USD
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80000000 USD
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185000000 USD
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576000000 USD
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2936000000 USD
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2207000000 USD
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1231000000 USD
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1990000000 USD
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54000000 USD
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357000000 USD
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956000000 USD
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65000000 USD
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67000000 USD
CY2018 us-gaap Net Income Loss
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471000000 USD
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729000000 USD
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CY2018 us-gaap Number Of Reportable Segments
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CY2018 us-gaap Number Of Reporting Units
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1 unit
CY2016 us-gaap Operating Costs And Expenses
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216000000 USD
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446000000 USD
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613000000 USD
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1313000000 USD
CY2017 us-gaap Operating Expenses
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4213000000 USD
CY2018 us-gaap Operating Expenses
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5963000000 USD
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Concentration of Credit Risk</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash and cash equivalents and restricted cash. We maintain cash balances at financial institutions, which may at times be in excess of federally insured levels. We have not incurred losses related to these balances to date.</font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The use of derivative instruments exposes us to counterparty credit risk, or the risk that a counterparty will be unable to meet its commitments. Certain of our commodity derivative transactions are executed through over-the-counter contracts which are subject to nominal credit risk as these transactions are settled on a daily margin basis with investment grade financial institutions. Collateral deposited for such contracts is recorded within other current assets. Our interest rate and FX derivative instruments are placed with investment grade financial institutions whom we believe are acceptable credit risks. We monitor counterparty creditworthiness on an ongoing basis; however, we cannot predict sudden changes in counterparties&#8217; creditworthiness. In addition, even if such changes are not sudden, we may be limited in our ability to mitigate an increase in counterparty credit risk. Should one of these counterparties not perform, we may not realize the benefit of some of our derivative instruments.</font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">SPL has entered into fixed price SPAs with terms of at least </font><font style="font-family:inherit;font-size:10pt;">20</font><font style="font-family:inherit;font-size:10pt;"> years with </font><font style="font-family:inherit;font-size:10pt;">seven</font><font style="font-family:inherit;font-size:10pt;"> unaffiliated third parties, CCL has entered into fixed price SPAs generally with terms of </font><font style="font-family:inherit;font-size:10pt;">20</font><font style="font-family:inherit;font-size:10pt;"> years with </font><font style="font-family:inherit;font-size:10pt;">nine</font><font style="font-family:inherit;font-size:10pt;"> unaffiliated third parties and our integrated marketing function has entered into a limited number of long-term SPAs with unaffiliated third parties. We are dependent on the respective customers&#8217; creditworthiness and their willingness to perform under their respective SPAs. See </font><a style="font-family:inherit;font-size:10pt;" href="#s2086D63C7E57055882A05AC794AED81A"><font style="font-family:inherit;font-size:10pt;">Note 20&#8212;Customer Concentration</font></a><font style="font-family:inherit;font-size:10pt;"> for additional details about our customer concentration.</font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:13px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">SPLNG has entered into </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> long-term TUAs with unaffiliated third parties for regasification capacity at the Sabine Pass LNG terminal. SPLNG is dependent on the respective customers&#8217; creditworthiness and their willingness to perform under their respective TUAs. SPLNG has mitigated this credit risk by securing TUAs for a significant portion of its regasification capacity with creditworthy third-party customers with a minimum Standard&#160;&amp; Poor&#8217;s rating of A.</font></div></div>
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">ORGANIZATION AND NATURE OF OPERATIONS</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Cheniere, a Delaware corporation, is a Houston-based energy company primarily engaged in LNG-related businesses. We own and operate the Sabine Pass LNG terminal in Louisiana through our ownership interest in and management agreements with Cheniere Partners, which is a publicly traded limited partnership that we created in 2007. As of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;">, we owned </font><font style="font-family:inherit;font-size:10pt;">100%</font><font style="font-family:inherit;font-size:10pt;"> of the general partner interest and </font><font style="font-family:inherit;font-size:10pt;">48.6%</font><font style="font-family:inherit;font-size:10pt;"> of the limited partner interest in Cheniere Partners. We are currently developing and constructing </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> natural gas liquefaction and export facilities. </font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Sabine Pass LNG terminal is located in Cameron Parish, Louisiana, on the Sabine-Neches Waterway less than four miles from the Gulf Coast. Cheniere Partners is developing, constructing and operating natural gas liquefaction facilities </font><font style="font-family:inherit;font-size:10pt;">(the &#8220;SPL Project&#8221;)</font><font style="font-family:inherit;font-size:10pt;"> at the Sabine Pass LNG terminal adjacent to the existing regasification facilities (described below) through a wholly owned subsidiary, SPL. Cheniere Partners plans to construct up to </font><font style="font-family:inherit;font-size:10pt;">six</font><font style="font-family:inherit;font-size:10pt;"> Trains, which are in various stages of development, construction and operations. Trains 1 through 4 are operational, Train 5 is undergoing commissioning and Train 6 is being commercialized and has all necessary regulatory approvals in place. Each Train is expected to have a nominal production capacity, which is prior to adjusting for planned maintenance, production reliability, potential overdesign and debottlenecking opportunities, of approximately </font><font style="font-family:inherit;font-size:10pt;">4.5</font><font style="font-family:inherit;font-size:10pt;"> mtpa of LNG per Train, and run rate adjusted nominal production capacity of approximately </font><font style="font-family:inherit;font-size:10pt;">4.5</font><font style="font-family:inherit;font-size:10pt;"> to </font><font style="font-family:inherit;font-size:10pt;">4.9</font><font style="font-family:inherit;font-size:10pt;"> mtpa of LNG per Train. The Sabine Pass LNG terminal has operational regasification facilities owned by Cheniere Partners&#8217; wholly owned subsidiary, SPLNG, that include pre-existing infrastructure of </font><font style="font-family:inherit;font-size:10pt;">five</font><font style="font-family:inherit;font-size:10pt;"> LNG storage tanks with aggregate capacity of approximately </font><font style="font-family:inherit;font-size:10pt;">16.9</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">Bcfe</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> marine berths that can each accommodate vessels with nominal capacity of up to </font><font style="font-family:inherit;font-size:10pt;">266,000</font><font style="font-family:inherit;font-size:10pt;"> cubic meters and vaporizers with regasification capacity of approximately </font><font style="font-family:inherit;font-size:10pt;">4.0</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">Bcf/d</font><font style="font-family:inherit;font-size:10pt;">. Cheniere Partners also owns a </font><font style="font-family:inherit;font-size:10pt;">94</font><font style="font-family:inherit;font-size:10pt;">-mile pipeline that interconnects the Sabine Pass LNG terminal with a number of large interstate pipelines </font><font style="font-family:inherit;font-size:10pt;">(the &#8220;Creole Trail Pipeline&#8221;)</font><font style="font-family:inherit;font-size:10pt;"> through a wholly owned subsidiary, CTPL. </font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are developing and constructing a second natural gas liquefaction and export facility at the Corpus Christi LNG terminal near Corpus Christi, Texas, and operate a </font><font style="font-family:inherit;font-size:10pt;">23</font><font style="font-family:inherit;font-size:10pt;">-mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with several interstate and intrastate natural gas pipelines </font><font style="font-family:inherit;font-size:10pt;">(the &#8220;Corpus Christi Pipeline&#8221; and together with the liquefaction facilities, the &#8220;CCL Project&#8221;)</font><font style="font-family:inherit;font-size:10pt;"> through our wholly owned subsidiaries CCL and CCP, respectively. The </font><font style="font-family:inherit;font-size:10pt;">CCL Project</font><font style="font-family:inherit;font-size:10pt;"> is being developed in stages with the first phase being </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> Trains (&#8220;Phase 1&#8221;), with expected aggregate nominal production capacity, which is prior to adjusting for planned maintenance, production reliability, potential overdesign and debottlenecking opportunities, of approximately </font><font style="font-family:inherit;font-size:10pt;">13.5</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">mtpa</font><font style="font-family:inherit;font-size:10pt;"> of LNG, </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> LNG storage tanks with aggregate capacity of approximately </font><font style="font-family:inherit;font-size:10pt;">10.1</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">Bcfe</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> marine berths that can each accommodate vessels with nominal capacity of up to </font><font style="font-family:inherit;font-size:10pt;">266,000</font><font style="font-family:inherit;font-size:10pt;"> cubic meters. The first stage includes Trains 1 and </font><font style="font-family:inherit;font-size:10pt;">2</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> LNG storage tanks, </font><font style="font-family:inherit;font-size:10pt;">one</font><font style="font-family:inherit;font-size:10pt;"> complete marine berth and a second partial berth and all of the </font><font style="font-family:inherit;font-size:10pt;">CCL Project</font><font style="font-family:inherit;font-size:10pt;">&#8217;s necessary infrastructure facilities </font><font style="font-family:inherit;font-size:10pt;">(&#8220;Stage 1&#8221;)</font><font style="font-family:inherit;font-size:10pt;">. The second stage includes Train 3, </font><font style="font-family:inherit;font-size:10pt;">one</font><font style="font-family:inherit;font-size:10pt;"> LNG storage tank and the completion of the second partial berth </font><font style="font-family:inherit;font-size:10pt;">(&#8220;Stage 2&#8221;)</font><font style="font-family:inherit;font-size:10pt;">. Trains 1 and 2 are undergoing commissioning and Train 3 is under construction.</font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Additionally, separate from the CCH Group, we are developing an expansion of the Corpus Christi LNG terminal adjacent to the </font><font style="font-family:inherit;font-size:10pt;">CCL Project</font><font style="font-family:inherit;font-size:10pt;"> and filed an application with FERC in June 2018 for </font><font style="font-family:inherit;font-size:10pt;">seven</font><font style="font-family:inherit;font-size:10pt;"> midscale Trains with an expected aggregate nominal production capacity of approximately </font><font style="font-family:inherit;font-size:10pt;">9.5</font><font style="font-family:inherit;font-size:10pt;"> mtpa and </font><font style="font-family:inherit;font-size:10pt;">one</font><font style="font-family:inherit;font-size:10pt;"> LNG storage tank. </font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We remain focused on expansion of our existing sites by leveraging existing infrastructure. We are also in various stages of developing other projects, including infrastructure projects in support of natural gas supply and LNG demand, which, among other things, will require acceptable commercial and financing arrangements before we make a final investment decision </font><font style="font-family:inherit;font-size:10pt;">(&#8220;FID&#8221;)</font><font style="font-family:inherit;font-size:10pt;">.</font></div></div>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of Consolidated Financial Statements in conformity with </font><font style="font-family:inherit;font-size:10pt;">GAAP</font><font style="font-family:inherit;font-size:10pt;"> requires management to make certain estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the accompanying notes. Management evaluates its estimates and related assumptions regularly, including those related to the recoverability of property, plant and equipment, goodwill, derivative instruments, asset retirement obligations </font><font style="font-family:inherit;font-size:10pt;">(&#8220;AROs&#8221;)</font><font style="font-family:inherit;font-size:10pt;">, income taxes including valuation allowances for deferred tax assets, share-based compensation and fair value measurements. Changes in facts and circumstances or additional information may result in revised estimates, and actual results may differ from these estimates.</font></div></div>

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