2019 Q4 Form 10-Q Financial Statement

#000156459019043736 Filed on November 18, 2019

View on sec.gov

Income Statement

Concept 2019 Q4 2018 Q4 2018 Q3
Revenue $1.371B $1.517B $1.474B
YoY Change -9.62% 7.21% 11.25%
Cost Of Revenue $446.0M $543.0M $511.0M
YoY Change -17.86% 5.44% 4.07%
Gross Profit $925.0M $974.0M $963.0M
YoY Change -5.03% 8.22% 15.47%
Gross Profit Margin 67.47% 64.21% 65.33%
Selling, General & Admin $458.0M $477.0M $482.0M
YoY Change -3.98% -2.65% -2.23%
% of Gross Profit 49.51% 48.97% 50.05%
Research & Development $209.0M $211.0M $208.0M
YoY Change -0.95% 8.76% 7.77%
% of Gross Profit 22.59% 21.66% 21.6%
Depreciation & Amortization $50.00M $49.00M $49.00M
YoY Change 2.04% -3.92% -3.92%
% of Gross Profit 5.41% 5.03% 5.09%
Operating Expenses $629.0M $688.0M $709.0M
YoY Change -8.58% 0.58% 3.35%
Operating Profit $296.0M $286.0M $254.0M
YoY Change 3.5% 32.41% 71.62%
Interest Expense $12.00M $14.00M $14.00M
YoY Change -14.29% -17.65% 7.69%
% of Operating Profit 4.05% 4.9% 5.51%
Other Income/Expense, Net $3.000M $7.000M $18.00M
YoY Change -57.14% 75.0% 800.0%
Pretax Income $299.0M $293.0M $272.0M
YoY Change 2.05% 31.98% 87.59%
Income Tax $56.00M $52.00M -$11.00M
% Of Pretax Income 18.73% 17.75% -4.04%
Net Earnings $243.0M $241.0M $283.0M
YoY Change 0.83% 38.51% 116.03%
Net Earnings / Revenue 17.72% 15.89% 19.2%
Basic Earnings Per Share $1.03 $0.93 $1.08
Diluted Earnings Per Share $1.03 $0.91 $1.05
COMMON SHARES
Basic Shares Outstanding 235.0M 258.0M 262.0M
Diluted Shares Outstanding 236.0M 264.0M 269.0M

Balance Sheet

Concept 2019 Q4 2018 Q4 2018 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.987B $4.299B $4.811B
YoY Change -30.52% -27.93% -9.58%
Cash & Equivalents $2.545B $2.365B $2.633B
Short-Term Investments $442.0M $1.940B $2.184B
Other Short-Term Assets $313.0M $321.0M $329.0M
YoY Change -2.49% -11.57% 4.11%
Inventory $111.0M $86.00M $97.00M
Prepaid Expenses
Receivables $780.0M $765.0M $616.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $4.191B $5.471B $5.853B
YoY Change -23.4% -22.07% -7.07%
LONG-TERM ASSETS
Property, Plant & Equipment $746.0M $770.0M $768.0M
YoY Change -3.12% -3.14% -3.88%
Goodwill $1.770B
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $714.0M $499.0M $464.0M
YoY Change 43.09% -21.29% -31.46%
Total Long-Term Assets $3.281B $3.080B $3.052B
YoY Change 6.53% -6.33% -7.54%
TOTAL ASSETS
Total Short-Term Assets $4.191B $5.471B $5.853B
Total Long-Term Assets $3.281B $3.080B $3.052B
Total Assets $7.472B $8.551B $8.905B
YoY Change -12.62% -17.05% -7.23%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $382.0M $472.0M $425.0M
YoY Change -19.07% 24.54% 47.06%
Accrued Expenses $606.0M $340.0M $293.0M
YoY Change 78.24% -24.44% -26.57%
Deferred Revenue $1.718B $1.538B $1.623B
YoY Change 11.7%
Short-Term Debt $498.0M $249.0M $200.0M
YoY Change 100.0% -65.32% -77.63%
Long-Term Debt Due $0.00 $399.0M
YoY Change -100.0% -46.8%
Total Short-Term Liabilities $3.204B $3.310B $2.840B
YoY Change -3.2% -21.45% -33.75%
LONG-TERM LIABILITIES
Long-Term Debt $1.145B $1.144B $1.542B
YoY Change 0.09% -25.71% 106.98%
Other Long-Term Liabilities $837.0M $2.567B $2.601B
YoY Change -67.39% 44.46% 44.58%
Total Long-Term Liabilities $1.982B $3.711B $4.143B
YoY Change -46.59% 11.88% 62.85%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.204B $3.310B $2.840B
Total Long-Term Liabilities $1.982B $3.711B $4.143B
Total Liabilities $6.936B $7.021B $6.983B
YoY Change -1.21% -6.77% 2.23%
SHAREHOLDERS EQUITY
Retained Earnings $0.00 $0.00
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $536.0M $1.530B $1.922B
YoY Change
Total Liabilities & Shareholders Equity $7.472B $8.551B $8.905B
YoY Change -12.62% -17.05% -7.23%

Cashflow Statement

Concept 2019 Q4 2018 Q4 2018 Q3
OPERATING ACTIVITIES
Net Income $243.0M $241.0M $283.0M
YoY Change 0.83% 38.51% 116.03%
Depreciation, Depletion And Amortization $50.00M $49.00M $49.00M
YoY Change 2.04% -3.92% -3.92%
Cash From Operating Activities -$53.00M $165.0M $326.0M
YoY Change -132.12% -47.45% 30.4%
INVESTING ACTIVITIES
Capital Expenditures -$36.00M -$43.00M $64.00M
YoY Change -16.28% 48.28% 77.78%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities $214.0M $238.0M -$2.000M
YoY Change -10.08% -305.17% -60.0%
Cash From Investing Activities $178.0M $195.0M $186.0M
YoY Change -8.72% -234.48% 250.94%
FINANCING ACTIVITIES
Cash Dividend Paid $105.0M
YoY Change 94.44%
Common Stock Issuance & Retirement, Net $500.0M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -545.0M -617.0M -812.0M
YoY Change -11.67% -246.9% -548.62%
NET CHANGE
Cash From Operating Activities -53.00M 165.0M 326.0M
Cash From Investing Activities 178.0M 195.0M 186.0M
Cash From Financing Activities -545.0M -617.0M -812.0M
Net Change In Cash -420.0M -257.0M -314.0M
YoY Change 63.42% -143.63% -162.43%
FREE CASH FLOW
Cash From Operating Activities -$53.00M $165.0M $326.0M
Capital Expenditures -$36.00M -$43.00M $64.00M
Free Cash Flow -$17.00M $208.0M $262.0M
YoY Change -108.17% -39.36% 22.43%

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us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2. Recent Accounting Standards Not Yet Effective</p> <p style="text-align:justify;margin-top:9pt;margin-bottom:0pt;margin-left:1.06%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Credit Losses on Financial Instruments</p> <p style="margin-top:9pt;margin-bottom:0pt;text-indent:2.27%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In June 2016, the FASB issued an accounting standards update on the measurement of credit losses on financial instruments. The standard introduces a new model for measuring and recognizing credit losses on financial instruments, requiring financial assets measured at amortized cost basis to be presented at the net amount expected to be collected.<span style="font-size:9pt;font-family:Arial;"> </span>It also requires that credit losses be recorded through an allowance for credit losses. This new standard will be effective for us in our first quarter of fiscal 2021, although early adoption is permitted. Upon adoption, companies must apply a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings, though a prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. Based on the composition of our investment portfolio, current market conditions, and historical credit loss activity, the adoption of this standard is not expected to have a material impact on our consolidated financial statements.</p>
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us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested In Period Fair Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1
1000000
CY2019Q4 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
40000000
CY2018Q4 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
38000000
CY2019Q4 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense
4000000
CY2018Q4 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense
5000000
CY2019Q4 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized
339000000
us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1
P2Y3M18D
CY2019Q4 us-gaap Stock Repurchase Program Authorized Amount1
StockRepurchaseProgramAuthorizedAmount1
13600000000
us-gaap Stock Issued During Period Shares Employee Stock Purchase Plans
StockIssuedDuringPeriodSharesEmployeeStockPurchasePlans
1000000
us-gaap Stock Issued During Period Shares Employee Stock Purchase Plans
StockIssuedDuringPeriodSharesEmployeeStockPurchasePlans
2000000
us-gaap Stock Repurchased And Retired During Period Shares
StockRepurchasedAndRetiredDuringPeriodShares
14000000
us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
55.06
us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
750000000
CY2019Q4 us-gaap Stock Repurchase Program Remaining Authorized Repurchase Amount1
StockRepurchaseProgramRemainingAuthorizedRepurchaseAmount1
1139000000
us-gaap Stock Repurchased And Retired During Period Shares
StockRepurchasedAndRetiredDuringPeriodShares
327000000
us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
38.20
us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
12500000000
us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
0.96
us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
0.80
us-gaap Oci Before Reclassifications Net Of Tax Attributable To Parent
OciBeforeReclassificationsNetOfTaxAttributableToParent
21000000
us-gaap Reclassification From Aoci Current Period Net Of Tax Attributable To Parent
ReclassificationFromAociCurrentPeriodNetOfTaxAttributableToParent
14000000
us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
7000000
CY2019Q2 us-gaap Restructuring Reserve
RestructuringReserve
19000000
CY2018Q2 us-gaap Restructuring Reserve
RestructuringReserve
6000000
us-gaap Restructuring Charges
RestructuringCharges
21000000
us-gaap Restructuring Charges
RestructuringCharges
19000000
us-gaap Payments For Restructuring
PaymentsForRestructuring
31000000
us-gaap Payments For Restructuring
PaymentsForRestructuring
18000000
us-gaap Restructuring Reserve Translation And Other Adjustment
RestructuringReserveTranslationAndOtherAdjustment
-4000000
us-gaap Restructuring Reserve Translation And Other Adjustment
RestructuringReserveTranslationAndOtherAdjustment
0
CY2019Q4 us-gaap Restructuring Reserve
RestructuringReserve
5000000
CY2018Q4 us-gaap Restructuring Reserve
RestructuringReserve
7000000
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.172
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.073
us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.35
us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.21
CY2019Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
294000000
CY2019Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
246000000
CY2019Q4 us-gaap Liability For Uncertain Tax Positions Noncurrent
LiabilityForUncertainTaxPositionsNoncurrent
251000000
CY2019Q4 us-gaap Net Income Loss
NetIncomeLoss
243000000
CY2018Q4 us-gaap Net Income Loss
NetIncomeLoss
241000000
us-gaap Net Income Loss
NetIncomeLoss
346000000
us-gaap Net Income Loss
NetIncomeLoss
524000000
CY2019Q4 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
235000000
CY2018Q4 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
258000000
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
237000000
CY2019Q4 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
1000000
CY2018Q4 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
6000000
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
3000000
CY2019Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
236000000
CY2018Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
264000000
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
240000000
CY2019Q4 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.03
CY2018Q4 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.93
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.46
us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1
CY2018Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.91
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.44
CY2019Q4 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
6000000
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
3000000
CY2018Q4 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
0
CY2019Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.03
us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1
CY2019Q4 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1371000000
CY2018Q4 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1517000000
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
2607000000
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
2991000000
CY2019Q4 us-gaap Cash Cash Equivalents And Short Term Investments
CashCashEquivalentsAndShortTermInvestments
2987000000
CY2019Q2 us-gaap Cash Cash Equivalents And Short Term Investments
CashCashEquivalentsAndShortTermInvestments
3899000000
CY2019Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
746000000
CY2019Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
759000000
CY2019Q4 ntap Accrued Liability For Quantities In Excess Of Future Demand Forecasts With Contract Manufacturers
AccruedLiabilityForQuantitiesInExcessOfFutureDemandForecastsWithContractManufacturers
13000000
CY2019Q2 ntap Accrued Liability For Quantities In Excess Of Future Demand Forecasts With Contract Manufacturers
AccruedLiabilityForQuantitiesInExcessOfFutureDemandForecastsWithContractManufacturers
16000000
us-gaap Proceeds From Sale And Collection Of Finance Receivables
ProceedsFromSaleAndCollectionOfFinanceReceivables
34000000
us-gaap Proceeds From Sale And Collection Of Finance Receivables
ProceedsFromSaleAndCollectionOfFinanceReceivables
43000000
us-gaap Loss Contingency Lawsuit Filing Date
LossContingencyLawsuitFilingDate
August 14, 2019
us-gaap Loss Contingency Domicile Of Litigation
LossContingencyDomicileOfLitigation
United States District Court for the Northern District of California
us-gaap Loss Contingency Name Of Defendant
LossContingencyNameOfDefendant
NetApp and certain of our executive officers
us-gaap Loss Contingency Laws Affected
LossContingencyLawsAffected
The complaint alleges that the defendants violated Section 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and SEC Rule 10b-5, by making materially false or misleading statements with respect to our financial guidance for fiscal 2020, as provided on May 22, 2019.
us-gaap Loss Contingency Managements Assessment And Process
LossContingencyManagementsAssessmentAndProcess
Although management at present believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations, cash flows, or overall trends, legal proceedings are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could include significant monetary damages. In addition, in matters for which injunctive relief or other conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways or requiring other remedies. An unfavorable outcome may result in a material adverse impact on our business, results of operations, financial position, and overall trends.
CY2019Q4 us-gaap Loss Contingency Accrual At Carrying Value
LossContingencyAccrualAtCarryingValue
0

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