2018 Q4 Form 10-Q Financial Statement

#000151029518000215 Filed on November 05, 2018

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q3 2017 Q3
Revenue $32.33B $22.99B $19.21B
YoY Change 53.56% 19.67% 15.6%
Cost Of Revenue $19.28B $20.61B $16.62B
YoY Change 1.4% 24.01% 11.02%
Gross Profit $2.753B $2.382B $2.593B
YoY Change 23.51% -8.14% 73.79%
Gross Profit Margin 8.51% 10.36% 13.5%
Selling, General & Admin $1.063B $445.0M $411.0M
YoY Change 103.25% 8.27% -2.14%
% of Gross Profit 38.61% 18.68% 15.85%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $874.0M $555.0M $517.0M
YoY Change 61.85% 7.35% 1.97%
% of Gross Profit 31.75% 23.3% 19.94%
Operating Expenses $1.617B $445.0M $411.0M
YoY Change 52.12% 8.27% -2.14%
Operating Profit $2.017B $1.403B $1.577B
YoY Change 72.69% -11.03% 262.53%
Interest Expense -$309.0M -$255.0M -$150.0M
YoY Change 107.38% 70.0% -2.6%
% of Operating Profit -15.32% -18.18% -9.51%
Other Income/Expense, Net -$6.000M -$54.00M -$6.000M
YoY Change -89.29% 800.0% 0.0%
Pretax Income $761.0M $1.163B $1.419B
YoY Change -20.65% -18.04% 382.65%
Income Tax $239.0M $222.0M $415.0M
% Of Pretax Income 31.41% 19.09% 29.25%
Net Earnings $951.0M $737.0M $903.0M
YoY Change -52.83% -18.38% 522.76%
Net Earnings / Revenue 2.94% 3.21% 4.7%
Basic Earnings Per Share $1.38 $1.63 $1.79
Diluted Earnings Per Share $1.35 $1.62 $1.77
COMMON SHARES
Basic Shares Outstanding 690.9M shares 451.0M shares 504.0M shares
Diluted Shares Outstanding 456.0M shares 508.0M shares

Balance Sheet

Concept 2018 Q4 2018 Q3 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.687B $4.992B $2.088B
YoY Change -43.97% 139.08% 194.5%
Cash & Equivalents $1.687B $4.992B $2.088B
Short-Term Investments
Other Short-Term Assets $646.0M $134.0M $150.0M
YoY Change 345.52% -10.67% -14.77%
Inventory $9.837B $5.339B $5.493B
Prepaid Expenses
Receivables $5.853B $5.408B $3.900B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $18.02B $15.87B $11.63B
YoY Change 34.49% 36.47% 21.85%
LONG-TERM ASSETS
Property, Plant & Equipment $45.06B $27.72B $26.04B
YoY Change 70.4% 6.46% 1.32%
Goodwill $15.83B $3.713B $3.586B
YoY Change 341.55% 3.54% -1.7%
Intangibles $3.314B
YoY Change 425.2%
Long-Term Investments $5.898B $4.910B $4.769B
YoY Change 23.21% 2.96% 34.19%
Other Assets $3.777B $818.0M $784.0M
YoY Change 355.06% 4.34% -7.66%
Total Long-Term Assets $74.92B $37.16B $35.18B
YoY Change 110.17% 5.64% 4.23%
TOTAL ASSETS
Total Short-Term Assets $18.02B $15.87B $11.63B
Total Long-Term Assets $74.92B $37.16B $35.18B
Total Assets $92.94B $53.03B $46.81B
YoY Change 89.49% 13.3% 8.11%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $9.366B $8.016B $6.159B
YoY Change 12.88% 30.15% 21.84%
Accrued Expenses $1.152B $493.0M $830.0M
YoY Change 5.49% -40.6% 8.07%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $544.0M $26.00M $29.00M
YoY Change -12.82% -10.34% 3.57%
Total Short-Term Liabilities $13.22B $9.634B $7.647B
YoY Change 26.13% 25.98% 20.62%
LONG-TERM LIABILITIES
Long-Term Debt $26.98B $18.42B $12.75B
YoY Change 118.96% 44.46% 21.02%
Other Long-Term Liabilities $2.827B $1.734B $1.669B
YoY Change 60.17% 3.89% -6.02%
Total Long-Term Liabilities $29.81B $20.16B $14.42B
YoY Change 111.59% 39.77% 17.12%
TOTAL LIABILITIES
Total Short-Term Liabilities $13.22B $9.634B $7.647B
Total Long-Term Liabilities $29.81B $20.16B $14.42B
Total Liabilities $47.89B $33.00B $26.00B
YoY Change 75.93% 26.89% 16.42%
SHAREHOLDERS EQUITY
Retained Earnings $14.76B $14.12B $11.04B
YoY Change 14.7% 27.84% 8.6%
Common Stock $33.74B $13.71B $11.24B
YoY Change 199.4% 21.94% 2.1%
Preferred Stock
YoY Change
Treasury Stock (at cost) $13.18B $12.50B $9.118B
YoY Change 33.5% 37.04% 22.24%
Treasury Stock Shares 295.0M shares 284.0M shares 235.0M shares
Shareholders Equity $35.18B $15.17B $12.93B
YoY Change
Total Liabilities & Shareholders Equity $92.94B $53.03B $46.81B
YoY Change 89.49% 13.3% 8.11%

Cashflow Statement

Concept 2018 Q4 2018 Q3 2017 Q3
OPERATING ACTIVITIES
Net Income $951.0M $737.0M $903.0M
YoY Change -52.83% -18.38% 522.76%
Depreciation, Depletion And Amortization $874.0M $555.0M $517.0M
YoY Change 61.85% 7.35% 1.97%
Cash From Operating Activities $2.727B $1.182B $1.905B
YoY Change -0.66% -37.95% 362.38%
INVESTING ACTIVITIES
Capital Expenditures -$1.263B -$849.0M -$663.0M
YoY Change 57.09% 28.05% -7.4%
Acquisitions
YoY Change
Other Investing Activities -$3.512B -$528.0M $58.00M
YoY Change -15369.57% -1010.34% -1260.0%
Cash From Investing Activities -$4.775B -$1.377B -$605.0M
YoY Change 511.4% 127.6% -16.09%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $400.0M $452.0M
YoY Change -11.5% 786.27%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.222B 186.0M -660.0M
YoY Change 17.05% -128.18% -10.33%
NET CHANGE
Cash From Operating Activities 2.727B 1.182B 1.905B
Cash From Investing Activities -4.775B -1.377B -605.0M
Cash From Financing Activities -1.222B 186.0M -660.0M
Net Change In Cash -3.270B -9.000M 640.0M
YoY Change -455.43% -101.41% -161.24%
FREE CASH FLOW
Cash From Operating Activities $2.727B $1.182B $1.905B
Capital Expenditures -$1.263B -$849.0M -$663.0M
Free Cash Flow $3.990B $2.031B $2.568B
YoY Change 12.43% -20.91% 127.66%

Facts In Submission

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us-gaap Payments To Fund Longterm Loans To Related Parties
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us-gaap Payments To Minority Shareholders
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us-gaap Pension And Other Postretirement Benefit Expense
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us-gaap Pension And Other Postretirement Benefit Expense
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CY2018Q3 us-gaap Preferred Stock Shares Issued
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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%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Not Yet Adopted</font></div><div style="line-height:120%;padding-top:4px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ASU 2018-02, Reporting Comprehensive Income - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income </font></div><div style="line-height:120%;padding-top:4px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2018, the FASB issued an ASU allowing an entity the choice to reclassify to retained earnings the tax effects related to the TCJA that are stranded in accumulated other comprehensive income. We do not expect adoption of this standard to have a material impact on our financial statements. The amendment is effective beginning in 2019.&#160; </font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities</font></div><div style="line-height:120%;padding-top:4px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In August 2017, the FASB issued an ASU to amend the hedge accounting rules to simplify the application of hedge accounting guidance and better portray the economic results of risk management activities in the financial statements. The guidance expands the ability to hedge nonfinancial and financial risk components, reduces complexity in fair value hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness and eases certain hedge effectiveness assessment requirements. The guidance is effective beginning in 2019. We are currently evaluating the impact of this guidance, including transition elections and required disclosures, on our financial statements and the timing of adoption. However, since we have not historically designated our commodity derivatives as hedges, we do not expect the adoption of this ASU to have a material impact on our consolidated financial statements.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ASU 2017-04, Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment</font></div><div style="line-height:120%;padding-top:4px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2017, the FASB issued an ASU which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new guidance, the recognition of an impairment charge is calculated based on the amount by which the carrying amount exceeds the reporting unit&#8217;s fair value, which could be different from the amount calculated under the current method using the implied fair value of the goodwill; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The guidance should be applied on a prospective basis, and is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. </font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments</font></div><div style="line-height:120%;padding-top:4px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In June 2016, the FASB issued an ASU related to the accounting for credit losses on certain financial instruments.&#160;The guidance requires that for most financial assets, losses be based on an expected loss approach which includes estimates of losses over the life of exposure that considers historical, current and forecasted information.&#160;Expanded disclosures related to the methods used to estimate the losses as well as a specific disaggregation of balances for financial assets are also required.&#160;The change is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. We do not expect application of this ASU to have a material impact on our consolidated financial statements. </font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ASU 2016-02 and 2018-11, Leases</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> </font></div><div style="line-height:120%;padding-top:4px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2016, the FASB issued an ASU requiring lessees to record virtually all leases on their balance sheets. The ASU also requires expanded disclosures to help financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. For lessors, this amended guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The guidance will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years. We will transition to the new guidance by recording leases on our balance sheet as of January 1, 2019. We continue to evaluate the impact of this standard on our financial statements, disclosures, internal controls and accounting policies. This evaluation process includes reviewing all forms of leases, performing a completeness assessment over the lease population and analyzing the practical expedients in order to determine the best path of implementing changes to existing processes and controls. We are implementing a third-party supported lease accounting information system to account for our lease population in accordance with this new standard and establishing internal controls over the new system. We have completed a significant portion of the design and testing of the new system and commenced lease data loading and testing. We believe the adoption of the standard will have a material impact on our consolidated financial statements as virtually all leases will be recognized as a right of use asset and lease obligation.</font></div></div>
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">These interim consolidated financial statements are unaudited; however, in the opinion of our management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal, recurring nature unless otherwise disclosed. These interim consolidated financial statements, including the notes, have been prepared in accordance with the rules of the SEC applicable to interim period financial statements and do not include all of the information and disclosures required by GAAP for complete financial statements.</font></div></div>

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