2017 Q2 Form 10-K Financial Statement

#000156459017014900 Filed on August 02, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2017 2016 Q4
Revenue $23.32B $57.19B $24.09B
YoY Change 13.11% -32.97% 1.24%
Cost Of Revenue $8.456B $34.26B $9.901B
YoY Change 5.98% 4.52% 0.29%
Gross Profit $17.15B $62.31B $15.93B
YoY Change 35.73% 18.6% 14.37%
Gross Profit Margin 73.55% 108.95% 66.11%
Selling, General & Admin $4.353B $19.94B $4.958B
YoY Change -16.88% 3.54% -0.8%
% of Gross Profit 25.38% 32.0% 31.13%
Research & Development $2.769B $13.04B $3.062B
YoY Change -11.98% 8.75% 5.59%
% of Gross Profit 16.15% 20.92% 19.23%
Depreciation & Amortization $2.343B $6.100B $2.166B
YoY Change 22.67% 24.49% 40.28%
% of Gross Profit 13.66% 9.79% 13.6%
Operating Expenses $7.122B $32.98B $8.020B
YoY Change -15.04% 5.54% 1.54%
Operating Profit $7.682B $29.03B $7.905B
YoY Change 149.42% 43.82% 31.18%
Interest Expense $301.0M $2.222B $521.0M
YoY Change -19.09% 78.76% 68.61%
% of Operating Profit 3.92% 7.66% 6.59%
Other Income/Expense, Net -$24.00M $876.0M -$172.0M
YoY Change -38.46% -303.25% 0.58%
Pretax Income $7.958B $6.843B $8.022B
YoY Change -13.83% 33.52% 37.01%
Income Tax -$111.0M $4.412B $1.755B
% Of Pretax Income -1.39% 64.47% 21.88%
Net Earnings $8.069B $25.49B $6.267B
YoY Change 158.46% 24.1% 24.89%
Net Earnings / Revenue 34.61% 44.57% 26.01%
Basic Earnings Per Share $1.05 $3.29 $0.81
Diluted Earnings Per Share $1.03 $3.25 $0.80
COMMON SHARES
Basic Shares Outstanding 7.746B 7.775B shares
Diluted Shares Outstanding 7.832B

Balance Sheet

Concept 2017 Q2 2017 2016 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $132.9B $132.9B $122.4B
YoY Change 17.42% 17.42% 19.5%
Cash & Equivalents $7.663B $7.663B $8.468B
Short-Term Investments $125.2B $125.2B $114.0B
Other Short-Term Assets $5.103B $5.203B $5.864B
YoY Change -13.39% -12.77% -7.58%
Inventory $2.181B $2.181B $1.961B
Prepaid Expenses
Receivables $22.43B $22.43B $14.34B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $162.7B $162.7B $144.9B
YoY Change 16.49% 16.49% 13.41%
LONG-TERM ASSETS
Property, Plant & Equipment $23.73B $30.29B $21.38B
YoY Change 29.3% 65.01% 35.4%
Goodwill $35.12B $34.52B
YoY Change 96.52% 98.0%
Intangibles
YoY Change
Long-Term Investments $5.956B $5.956B $8.911B
YoY Change -42.8% -42.8% -22.54%
Other Assets $6.076B $4.443B $3.845B
YoY Change 77.87% 29.38% 31.32%
Total Long-Term Assets $87.62B $87.62B $79.66B
YoY Change 62.83% 62.83% 52.36%
TOTAL ASSETS
Total Short-Term Assets $162.7B $162.7B $144.9B
Total Long-Term Assets $87.62B $87.62B $79.66B
Total Assets $250.3B $250.3B $224.6B
YoY Change 29.38% 29.38% 24.72%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $7.390B $7.390B $6.580B
YoY Change 7.13% 7.13% -5.13%
Accrued Expenses $5.819B $5.819B $3.982B
YoY Change 10.54% 10.54% 9.13%
Deferred Revenue $24.01B
YoY Change
Short-Term Debt $9.072B $9.072B $25.07B
YoY Change -29.7% -29.7% 735.5%
Long-Term Debt Due $1.049B $1.162B $599.0M
YoY Change 4548.0% -20.13%
Total Short-Term Liabilities $55.75B $55.75B $70.79B
YoY Change -6.09% -6.09% 66.0%
LONG-TERM LIABILITIES
Long-Term Debt $76.07B $78.50B $59.31B
YoY Change 87.57% 89.98% 45.79%
Other Long-Term Liabilities $3.549B $22.62B $15.98B
YoY Change -73.98% 17.1% 16.64%
Total Long-Term Liabilities $79.62B $101.1B $75.29B
YoY Change 46.91% 66.76% 38.45%
TOTAL LIABILITIES
Total Short-Term Liabilities $55.75B $55.75B $70.79B
Total Long-Term Liabilities $79.62B $101.1B $75.29B
Total Liabilities $162.6B $162.6B $155.8B
YoY Change 33.86% 33.86% 50.8%
SHAREHOLDERS EQUITY
Retained Earnings $17.77B $120.0M
YoY Change 678.66% -98.29%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $87.71B $87.71B $68.81B
YoY Change
Total Liabilities & Shareholders Equity $250.3B $250.3B $224.6B
YoY Change 29.38% 29.38% 24.72%

Cashflow Statement

Concept 2017 Q2 2017 2016 Q4
OPERATING ACTIVITIES
Net Income $8.069B $25.49B $6.267B
YoY Change 158.46% 24.1% 24.89%
Depreciation, Depletion And Amortization $2.343B $6.100B $2.166B
YoY Change 22.67% 24.49% 40.28%
Cash From Operating Activities $11.01B $39.51B $6.293B
YoY Change 30.02% 18.55% 12.01%
INVESTING ACTIVITIES
Capital Expenditures -$2.283B $8.129B $1.988B
YoY Change -14.01% -2.57% -1.78%
Acquisitions
YoY Change
Other Investing Activities -$5.086B -$38.65B -$12.76B
YoY Change -31.44% 147.66% 878.76%
Cash From Investing Activities -$7.369B -$46.78B -$14.75B
YoY Change -26.84% 95.33% 343.24%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $11.02B $3.468B
YoY Change -28.0% -2.61%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -2.701B 8.408B 3.016B
YoY Change -378.17% -200.18% -682.24%
NET CHANGE
Cash From Operating Activities 11.01B 39.51B 6.293B
Cash From Investing Activities -7.369B -46.78B -14.75B
Cash From Financing Activities -2.701B 8.408B 3.016B
Net Change In Cash 935.0M 1.134B -5.442B
YoY Change -246.55% 15.48% -407.11%
FREE CASH FLOW
Cash From Operating Activities $11.01B $39.51B $6.293B
Capital Expenditures -$2.283B $8.129B $1.988B
Free Cash Flow $13.29B $31.38B $4.305B
YoY Change 19.51% 25.6% 19.78%

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CY2015Q2 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2017 us-gaap Use Of Estimates
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<div> <p style="margin-bottom:0pt;margin-top:13pt;text-align:justify;text-indent:0%;font-weight:bold;font-size:10pt;font-family:Arial;font-style:normal;text-transform:none;font-variant: normal;">Estimates and Assumptions </p> <p style="margin-bottom:0pt;margin-top:9pt;text-align:justify;text-indent:0%;font-size:10pt;font-family:Arial;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Examples of estimates include: loss contingencies; product warranties; the fair value of and/or potential impairment of goodwill and intangible assets for our reporting units; product life cycles; useful lives of our tangible and intangible assets; allowances for doubtful accounts; allowances for product returns; the market value of, and demand for, our inventory; and stock-based compensation forfeiture rates. Examples of assumptions include: the elements comprising a software arrangement, including the distinction between upgrades or enhancements and new products; when technological feasibility is achieved for our products; the potential outcome of future tax consequences of events that have been recognized on our consolidated financial statements or tax returns; and determining when investment impairments are other-than-temporary. Actual results and outcomes may differ from management&#8217;s estimates and assumptions. </p></div>
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130000000
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6100000000
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4900000000
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4100000000
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14000000
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11300000000
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11300000000
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CY2016Q2 us-gaap Goodwill Impairment Loss
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16667000000
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6561000000
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9100000000
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5367000000
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P9Y
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393000000
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P4Y
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1700000000
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978000000
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1300000000
CY2017 us-gaap Capitalized Computer Software Amortization1
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55000000
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69000000
CY2015 us-gaap Capitalized Computer Software Amortization1
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79000000
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2190000000
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1698000000
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1180000000
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1006000000
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3100000000
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12900000000
CY2017 us-gaap Line Of Credit Facility Covenant Compliance
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As of June 30, 2017, we were in compliance with the only financial covenant in both credit agreements, which requires us to maintain a coverage ratio of at least three times earnings before interest, taxes, depreciation, and amortization to interest expense, as defined in the credit agreements.
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80300000000
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44000000000
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1600000000
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1100000000
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392000000
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1050000000
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4000000000
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3750000000
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7996000000
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0.350
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0.350
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0.350
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-0.157
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-0.194
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-0.209
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-0.073
CY2016 msft Effective Income Tax Rate Reconciliation Phone Business Gains Losses
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0.013
CY2015 msft Effective Income Tax Rate Reconciliation Phone Business Gains Losses
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0.191
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0.027
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0.020
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0.00
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0.014
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0.006
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0.024
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EffectiveIncomeTaxRateReconciliationInterestIncomeExpense
0.018
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0.012
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0.015
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-0.013
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-0.005
CY2015 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
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