2016 Q4 Form 10-Q Financial Statement

#000092222416000201 Filed on November 01, 2016

View on sec.gov

Income Statement

Concept 2016 Q4 2016 Q3 2015 Q3
Revenue $1.832B $1.889B $1.878B
YoY Change 2.92% 0.59% -0.05%
Cost Of Revenue $175.0M $151.0M $177.0M
YoY Change -2.23% -14.69% 2.31%
Gross Profit $1.657B $1.738B $1.701B
YoY Change 3.5% 2.18% -0.29%
Gross Profit Margin 90.45% 92.01% 90.58%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $260.0M $249.0M $245.0M
YoY Change 9.24% 1.63% -1.61%
% of Gross Profit 15.69% 14.33% 14.4%
Operating Expenses $943.0M $952.0M $1.015B
YoY Change -4.17% -6.21% -0.29%
Operating Profit $714.0M $786.0M $686.0M
YoY Change 15.72% 14.58% -0.29%
Interest Expense -$217.0M $223.0M $221.0M
YoY Change -3.98% 0.9% 3.76%
% of Operating Profit -30.39% 28.37% 32.22%
Other Income/Expense, Net $106.0M $49.00M $75.00M
YoY Change 125.53% -34.67% -44.85%
Pretax Income $603.0M $612.0M $540.0M
YoY Change 37.67% 13.33% -11.62%
Income Tax $138.0M $139.0M $144.0M
% Of Pretax Income 22.89% 22.71% 26.67%
Net Earnings $465.0M $473.0M $393.0M
YoY Change 16.54% 20.36% -20.93%
Net Earnings / Revenue 25.38% 25.04% 20.93%
Basic Earnings Per Share $0.68 $0.70 $0.58
Diluted Earnings Per Share $0.68 $0.69 $0.58
COMMON SHARES
Basic Shares Outstanding 679.6M shares 678.1M shares 670.8M shares
Diluted Shares Outstanding 680.3M shares 673.7M shares

Balance Sheet

Concept 2016 Q4 2016 Q3 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $341.0M $416.0M $981.0M
YoY Change -59.21% -57.59% -17.42%
Cash & Equivalents $341.0M $416.0M $981.0M
Short-Term Investments
Other Short-Term Assets $52.00M $37.00M $181.0M
YoY Change -17.46% -79.56% 320.93%
Inventory $356.0M $346.0M $321.0M
Prepaid Expenses $63.00M $97.00M $86.00M
Receivables $666.0M $687.0M $713.0M
Other Receivables $46.00M $45.00M $64.00M
Total Short-Term Assets $2.067B $2.099B $2.990B
YoY Change -21.88% -29.8% -48.09%
LONG-TERM ASSETS
Property, Plant & Equipment $30.07B $29.97B $29.96B
YoY Change -1.01% 0.02% -12.89%
Goodwill $3.060B $3.175B $3.613B
YoY Change -13.8% -12.12% -13.71%
Intangibles $700.0M $693.0M $672.0M
YoY Change 3.09% 3.13% -28.21%
Long-Term Investments
YoY Change
Other Assets $151.0M $152.0M $382.0M
YoY Change -2.58% -60.21% 11.37%
Total Long-Term Assets $6.174B $5.970B $6.294B
YoY Change -1.58% -5.15% -11.16%
TOTAL ASSETS
Total Short-Term Assets $2.067B $2.099B $2.990B
Total Long-Term Assets $6.174B $5.970B $6.294B
Total Assets $38.32B $38.04B $39.25B
YoY Change -2.51% -3.08% -18.56%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $820.0M $741.0M $808.0M
YoY Change 0.99% -8.29% -33.11%
Accrued Expenses $270.0M $315.0M $300.0M
YoY Change -10.89% 5.0% -15.25%
Deferred Revenue
YoY Change
Short-Term Debt $923.0M $636.0M $557.0M
YoY Change 0.76% 14.18% -49.32%
Long-Term Debt Due $518.0M $443.0M $1.460B
YoY Change 6.8% -69.66% 521.28%
Total Short-Term Liabilities $3.837B $3.412B $4.468B
YoY Change -1.01% -23.63% -17.44%
LONG-TERM LIABILITIES
Long-Term Debt $17.81B $18.07B $17.75B
YoY Change -4.07% 1.83% -13.53%
Other Long-Term Liabilities $422.0M $437.0M $482.0M
YoY Change -13.7% -9.34% -19.8%
Total Long-Term Liabilities $6.771B $6.582B $6.811B
YoY Change -2.48% -3.36% -17.75%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.837B $3.412B $4.468B
Total Long-Term Liabilities $6.771B $6.582B $6.811B
Total Liabilities $10.61B $9.994B $11.28B
YoY Change -1.95% -11.39% -17.63%
SHAREHOLDERS EQUITY
Retained Earnings $3.829B $3.624B $2.791B
YoY Change 29.66% 29.85% -53.61%
Common Stock $9.848B $9.831B $9.637B
YoY Change 1.59% 2.01% 2.58%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $9.899B $9.975B $10.22B
YoY Change
Total Liabilities & Shareholders Equity $38.32B $38.04B $39.25B
YoY Change -2.51% -3.08% -18.56%

Cashflow Statement

Concept 2016 Q4 2016 Q3 2015 Q3
OPERATING ACTIVITIES
Net Income $465.0M $473.0M $393.0M
YoY Change 16.54% 20.36% -20.93%
Depreciation, Depletion And Amortization $260.0M $249.0M $245.0M
YoY Change 9.24% 1.63% -1.61%
Cash From Operating Activities $660.0M $1.060B $718.0M
YoY Change 13.01% 47.63% -35.61%
INVESTING ACTIVITIES
Capital Expenditures -$824.0M -$736.0M -$889.0M
YoY Change -15.75% -17.21% -5.02%
Acquisitions
YoY Change
Other Investing Activities -$36.00M $17.00M $1.000M
YoY Change -1900.0% 1600.0% -98.46%
Cash From Investing Activities -$860.0M -$719.0M -$888.0M
YoY Change -11.89% -19.03% 1.95%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 119.0M -406.0M 302.0M
YoY Change -52.59% -234.44% -219.84%
NET CHANGE
Cash From Operating Activities 660.0M 1.060B 718.0M
Cash From Investing Activities -860.0M -719.0M -888.0M
Cash From Financing Activities 119.0M -406.0M 302.0M
Net Change In Cash -81.00M -65.00M 132.0M
YoY Change -42.55% -149.24% -1750.0%
FREE CASH FLOW
Cash From Operating Activities $660.0M $1.060B $718.0M
Capital Expenditures -$824.0M -$736.0M -$889.0M
Free Cash Flow $1.484B $1.796B $1.607B
YoY Change -4.99% 11.76% -21.65%

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The Registrants expect to adopt this guidance effective January 1, 2018.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Registrants continue to assess the impact of adopting this guidance, as well as the transition method they will use, and are monitoring the development of industry specific application guidance which could impact those assessments.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;text-decoration:underline;">Accounting for Leases</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2016, the FASB issued accounting guidance for leases. This new guidance requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). For income statement purposes, the FASB retained a dual model for lessees, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Lessor accounting under the new guidance is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Similar to current practice, lessors will classify leases as operating, direct financing, or sales-type.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Registrants are currently assessing the impact of adopting this guidance.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;text-decoration:underline;">Accounting for Financial Instrument Credit Losses</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In June 2016, the FASB issued accounting guidance that requires the use of a current expected credit loss (CECL) model for the measurement of credit losses on financial instruments within the scope of this guidance, which includes accounts receivable. The CECL model requires an entity to measure credit losses using historical information, current information and reasonable and supportable forecasts of future events, rather than the incurred loss impairment model required under current GAAP.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For public business entities, this guidance will be applied using a modified retrospective approach and is effective for fiscal years beginning after December 15, 2019, and interim periods within those years. All entities may early adopt this guidance beginning after December 15, 2018, including interim periods within those years.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Registrants are currently assessing the impact of adopting this guidance and the period that they will adopt this guidance.</font></div></div>

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