2019 Q1 Form 10-Q Financial Statement

#000092222419000036 Filed on May 02, 2019

View on sec.gov

Income Statement

Concept 2019 Q1 2018 Q1
Revenue $2.079B $2.126B
YoY Change -2.21% 8.97%
Cost Of Revenue $250.0M $241.0M
YoY Change 3.73% 12.09%
Gross Profit $1.829B $1.885B
YoY Change -2.97% 8.58%
Gross Profit Margin 87.97% 88.66%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $284.0M $269.0M
YoY Change 5.58% 11.16%
% of Gross Profit 15.53% 14.27%
Operating Expenses $1.048B $1.034B
YoY Change 1.35% 10.0%
Operating Profit $781.0M $851.0M
YoY Change -8.23% 12.27%
Interest Expense $241.0M $239.0M
YoY Change 0.84% 10.14%
% of Operating Profit 30.86% 28.08%
Other Income/Expense, Net $52.00M -$43.00M
YoY Change -220.93% 377.78%
Pretax Income $592.0M $569.0M
YoY Change 4.04% 6.95%
Income Tax $126.0M $117.0M
% Of Pretax Income 21.28% 20.56%
Net Earnings $466.0M $452.0M
YoY Change 3.1% 12.16%
Net Earnings / Revenue 22.41% 21.26%
Basic Earnings Per Share $0.65 $0.65
Diluted Earnings Per Share $0.64 $0.65
COMMON SHARES
Basic Shares Outstanding 721.0M shares 694.5M shares
Diluted Shares Outstanding 730.0M shares 695.3M shares

Balance Sheet

Concept 2019 Q1 2018 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $518.0M $629.0M
YoY Change -17.65% 53.79%
Cash & Equivalents $518.0M $629.0M
Short-Term Investments
Other Short-Term Assets $62.00M $49.00M
YoY Change 26.53% -3.92%
Inventory $274.0M $279.0M
Prepaid Expenses $157.0M $139.0M
Receivables $749.0M $760.0M
Other Receivables $104.0M $89.00M
Total Short-Term Assets $2.429B $2.490B
YoY Change -2.45% 11.81%
LONG-TERM ASSETS
Property, Plant & Equipment $35.31B $33.74B
YoY Change 4.66% 10.95%
Goodwill $3.260B $3.302B
YoY Change -1.27% 8.26%
Intangibles $728.0M $703.0M
YoY Change 3.56% 9.16%
Long-Term Investments
YoY Change
Other Assets $290.0M $140.0M
YoY Change 107.14% -7.28%
Total Long-Term Assets $6.831B $6.162B
YoY Change 10.86% -3.72%
TOTAL ASSETS
Total Short-Term Assets $2.429B $2.490B
Total Long-Term Assets $6.831B $6.162B
Total Assets $44.57B $42.39B
YoY Change 5.14% 8.59%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $823.0M $836.0M
YoY Change -1.56% 19.43%
Accrued Expenses $353.0M $323.0M
YoY Change 9.29% 8.03%
Deferred Revenue
YoY Change
Short-Term Debt $1.428B $1.457B
YoY Change -1.99% -12.55%
Long-Term Debt Due $202.0M $250.0M
YoY Change -19.2% -40.05%
Total Short-Term Liabilities $4.061B $4.238B
YoY Change -4.18% -0.42%
LONG-TERM LIABILITIES
Long-Term Debt $21.11B $20.21B
YoY Change 4.45% 12.56%
Other Long-Term Liabilities $469.0M $441.0M
YoY Change 6.35% 4.5%
Total Long-Term Liabilities $7.220B $6.760B
YoY Change 6.8% 0.73%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.061B $4.238B
Total Long-Term Liabilities $7.220B $6.760B
Total Liabilities $11.28B $11.00B
YoY Change 2.57% 0.28%
SHAREHOLDERS EQUITY
Retained Earnings $4.761B $4.037B
YoY Change 17.93% 1.89%
Common Stock $11.06B $10.42B
YoY Change 6.14% 4.98%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $12.17B $11.18B
YoY Change
Total Liabilities & Shareholders Equity $44.57B $42.39B
YoY Change 5.14% 8.59%

Cashflow Statement

Concept 2019 Q1 2018 Q1
OPERATING ACTIVITIES
Net Income $466.0M $452.0M
YoY Change 3.1% 12.16%
Depreciation, Depletion And Amortization $284.0M $269.0M
YoY Change 5.58% 11.16%
Cash From Operating Activities $474.0M $566.0M
YoY Change -16.25% 319.26%
INVESTING ACTIVITIES
Capital Expenditures $729.0M $750.0M
YoY Change -2.8% 10.78%
Acquisitions
YoY Change
Other Investing Activities -$5.000M $3.000M
YoY Change -266.67% -400.0%
Cash From Investing Activities -$722.0M -$753.0M
YoY Change -4.12% 10.9%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $22.00M $100.0M
YoY Change -78.0% 36.99%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $142.0M $331.0M
YoY Change -57.1% -45.47%
NET CHANGE
Cash From Operating Activities $474.0M $566.0M
Cash From Investing Activities -$722.0M -$753.0M
Cash From Financing Activities $142.0M $331.0M
Net Change In Cash -$103.0M $142.0M
YoY Change -172.54% 115.15%
FREE CASH FLOW
Cash From Operating Activities $474.0M $566.0M
Capital Expenditures $729.0M $750.0M
Free Cash Flow -$255.0M -$184.0M
YoY Change 38.59% -66.05%

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83000000 USD
CY2019Q1 us-gaap Utilities Operating Expense Taxes
UtilitiesOperatingExpenseTaxes
80000000 USD
CY2018Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
695322000 shares
CY2019Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
729953000 shares
CY2018Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
694514000 shares
CY2019Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
721023000 shares
CY2019Q1 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">18. New Accounting Guidance Pending Adoption</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;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;font-style:italic;">(All Registrants)</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;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;"><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;">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. The Registrants will adopt this guidance on January 1, 2020. 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;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;text-decoration:underline;">Accounting for Implementation Costs in a Cloud Computing Service Arrangement</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:left;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;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In August 2018, the FASB issued accounting guidance that requires a customer in a cloud computing hosting arrangement that is a service contract to capitalize implementation costs consistent with internal-use software guidance for non-service arrangements. Prior guidance had not addressed these implementation costs. The guidance requires these capitalized implementation costs to be amortized over the term of the hosting arrangement to the statement of income line item where the service arrangement costs are recorded. The guidance also prescribes the financial statement classification of the capitalized implementation costs and cash flows associated with the arrangement. Additional quantitative and qualitative disclosures are also required.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:left;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;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For public business entities, this guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This standard must be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:left;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;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Registrants are currently assessing the impact of adopting this guidance and will adopt this standard as of the beginning of the period adopted, which will be January 1, 2020. Key implementation activities in process of being completed include assessing the population of cloud computing hosting arrangements in the scope of this guidance and identifying and evaluating industry issues.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:left;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;font-style:italic;">(PPL, LKE, LG&amp;E and KU)</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;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;">Simplifying the Test for Goodwill Impairment </font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;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;">In January 2017, the FASB issued accounting guidance that simplifies the test for goodwill impairment by eliminating the second step of the quantitative test. The second step of the quantitative test requires a calculation of the implied fair value of goodwill, which is determined in the same manner as the amount of goodwill in a business combination. Under this new guidance, an entity will now compare the estimated fair value of a reporting unit with its carrying value and recognize an impairment charge for the amount the carrying amount exceeds the fair value of the reporting unit.</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 prospectively and is effective for annual or any interim goodwill impairment tests for fiscal years beginning after December 15, 2019. The Registrants will adopt this guidance on January 1, 2020. The Registrants are currently assessing the impact of adopting this guidance.</font></div></div>

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