2023 Q1 Form 10-K Financial Statement

#000006270923000014 Filed on February 13, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $5.924B $5.022B $20.72B
YoY Change 6.76% -2.24% 4.54%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $3.207B $3.038B $12.07B
YoY Change 3.45% 4.58% 5.65%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $84.00M $460.0M $719.0M
YoY Change -5.62% 158.43% -3.75%
% of Gross Profit
Operating Expenses $4.198B $4.342B $16.44B
YoY Change 2.29% 5.41% 6.01%
Operating Profit $1.726B $4.280B
YoY Change 19.45% -0.74%
Interest Expense $136.0M -$124.0M -$433.0M
YoY Change 23.64% 36.26% -197.52%
% of Operating Profit 7.88% -10.12%
Other Income/Expense, Net $58.00M $57.00M $235.0M
YoY Change -6.45% -13.64% -15.16%
Pretax Income $1.664B $613.0M $4.082B
YoY Change 16.85% -36.21% -2.99%
Income Tax $412.0M $142.0M $995.0M
% Of Pretax Income 24.76% 23.16% 24.38%
Net Earnings $1.235B $466.0M $3.050B
YoY Change 15.31% -41.97% -2.96%
Net Earnings / Revenue 20.85% 9.28% 14.72%
Basic Earnings Per Share $2.50 $6.11
Diluted Earnings Per Share $2.47 $930.1K $6.040M
COMMON SHARES
Basic Shares Outstanding 494.6M shares 496.0M shares 499.0M shares
Diluted Shares Outstanding 500.0M shares 505.0M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.006B $1.442B $1.442B
YoY Change 30.31% -17.69% -17.69%
Cash & Equivalents $1.006B $1.442B $1.442B
Short-Term Investments
Other Short-Term Assets $1.407B $1.005B $1.005B
YoY Change 33.62% 8.53% 58.02%
Inventory
Prepaid Expenses
Receivables $7.066B $5.852B $5.852B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $9.113B $8.299B $8.299B
YoY Change 17.01% 0.42% 0.42%
LONG-TERM ASSETS
Property, Plant & Equipment $867.0M $2.433B $2.433B
YoY Change 0.23% 187.25% -10.39%
Goodwill $16.30B $16.25B
YoY Change 0.28% -0.4%
Intangibles $2.537B
YoY Change -9.72%
Long-Term Investments $214.0M $215.0M $215.0M
YoY Change -4.46% 3.86% 3.86%
Other Assets $1.471B $3.934B $3.934B
YoY Change 0.75% 169.27% -3.46%
Total Long-Term Assets $25.25B $25.16B $25.16B
YoY Change -2.53% -3.71% -3.71%
TOTAL ASSETS
Total Short-Term Assets $9.113B $8.299B $8.299B
Total Long-Term Assets $25.25B $25.16B $25.16B
Total Assets $34.36B $33.45B $33.45B
YoY Change 1.99% -2.72% -2.72%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.406B $3.278B $3.278B
YoY Change 10.44% 3.57% 3.57%
Accrued Expenses $1.749B $3.405B $3.405B
YoY Change 1.04% 4.0% 4.0%
Deferred Revenue
YoY Change
Short-Term Debt $844.0M $268.0M $0.00
YoY Change 2.3% 1476.47%
Long-Term Debt Due $1.267B $268.0M $268.0M
YoY Change 246.17% 1476.47% 1476.47%
Total Short-Term Liabilities $7.914B $7.172B $7.172B
YoY Change 20.15% 7.78% 7.78%
LONG-TERM LIABILITIES
Long-Term Debt $10.84B $11.23B $11.23B
YoY Change 2.74% 2.69% 2.69%
Other Long-Term Liabilities $1.433B $4.306B $4.306B
YoY Change -15.46% 151.52% -22.82%
Total Long-Term Liabilities $12.27B $15.53B $15.53B
YoY Change 0.22% 22.84% -5.93%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.914B $7.172B $7.172B
Total Long-Term Liabilities $12.27B $15.53B $15.53B
Total Liabilities $20.19B $22.71B $22.71B
YoY Change 7.19% 17.65% -2.88%
SHAREHOLDERS EQUITY
Retained Earnings $20.95B $20.30B
YoY Change 10.75% 10.4%
Common Stock $1.625B $1.740B
YoY Change 2.39% 4.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $10.95B $10.75B $10.75B
YoY Change
Total Liabilities & Shareholders Equity $34.36B $33.45B $33.45B
YoY Change 1.99% -2.72% -2.72%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income $1.235B $466.0M $3.050B
YoY Change 15.31% -41.97% -2.96%
Depreciation, Depletion And Amortization $84.00M $460.0M $719.0M
YoY Change -5.62% 158.43% -3.75%
Cash From Operating Activities -$819.0M $1.502B $3.465B
YoY Change 16.67% 4.16% -1.45%
INVESTING ACTIVITIES
Capital Expenditures $84.00M -$103.0M -$470.0M
YoY Change -31.15% -25.36% -215.76%
Acquisitions $572.0M
YoY Change -33.41%
Other Investing Activities -$3.000M -$384.0M -$380.0M
YoY Change -400.0% -12.13% 9400.0%
Cash From Investing Activities -$368.0M -$487.0M -$850.0M
YoY Change 131.45% -15.3% -26.98%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$2.022B
YoY Change -274.46%
Debt Paid & Issued, Net $4.000M $365.0M
YoY Change 0.0% -64.07%
Cash From Financing Activities $773.0M -1.074B -1.046B
YoY Change -9.59% -243.39% -19.35%
NET CHANGE
Cash From Operating Activities -$819.0M 1.502B 3.465B
Cash From Investing Activities -$368.0M -487.0M -850.0M
Cash From Financing Activities $773.0M -1.074B -1.046B
Net Change In Cash -$262.0M -59.00M 1.569B
YoY Change 84.51% -103.65% 124.14%
FREE CASH FLOW
Cash From Operating Activities -$819.0M $1.502B $3.465B
Capital Expenditures $84.00M -$103.0M -$470.0M
Free Cash Flow -$903.0M $1.605B $3.935B
YoY Change 9.59% 1.58% 26.53%

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<div style="margin-top:5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Estimates:</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> T</span><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">he preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. </span></div><div style="margin-top:5pt"><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On an ongoing basis, the Company evaluates its estimates, judgments and methodologies. The estimates are based on historical experience and on various other assumptions that the Company believes are reasonable. </span></div><div style="margin-top:5pt"><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Such matters include:</span></div><div style="margin-top:5pt;padding-left:36pt;text-indent:-18pt"><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">estimates of revenue;</span></div><div style="margin-top:5pt;padding-left:36pt;text-indent:-18pt"><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">impairment assessments and charges;</span></div><div style="margin-top:5pt;padding-left:36pt;text-indent:-18pt"><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">recoverability of long-lived assets;</span></div><div style="margin-top:5pt;padding-left:36pt;text-indent:-18pt"><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">liabilities for errors and omissions;</span></div><div style="margin-top:5pt;padding-left:36pt;text-indent:-18pt"><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">deferred tax assets, uncertain tax positions and income tax expense;</span></div><div style="margin-top:5pt;padding-left:36pt;text-indent:-18pt"><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">share-based and incentive compensation expense; </span></div><div style="margin-top:5pt;padding-left:36pt;text-indent:-18pt"><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">the allowance for current expected credit losses on receivables;</span></div><div style="margin-top:5pt;padding-left:36pt;text-indent:-18pt"><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">useful lives assigned to long-lived assets, and depreciation and amortization; and</span></div><div style="margin-top:5pt;padding-left:36pt;text-indent:-18pt"><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">fair value estimates of contingent consideration receivable or payable related to acquisitions or dispositions. </span></div><div style="margin-top:5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company believes these estimates are reasonable based on information currently available at the time they are made. The Company also considered potential impact of macroeconomic factors including inflation, volatility in interest rates, the war in Ukraine and COVID-19 to its customer base in various industries and geographies. Insurance exposures subject to variable factors are subject to mid-term and end of term adjustments, as well as policy audits, which may reduce premiums and corresponding commissions. Estimates were updated based on internal and industry specific economic data. Actual results may differ from these estimates</span><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:11pt;font-weight:400;line-height:120%">.</span></div>
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Files In Submission

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