2018 Q2 Form 10-Q Financial Statement

#000153470118000094 Filed on July 27, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q2
Revenue $28.98B $24.09B
YoY Change 20.31% 10.24%
Cost Of Revenue $25.75B $18.35B
YoY Change 40.29% -6.44%
Gross Profit $3.233B $5.734B
YoY Change -43.62% 137.53%
Gross Profit Margin 11.16% 23.81%
Selling, General & Admin $432.0M $439.0M
YoY Change -1.59% 4.28%
% of Gross Profit 13.36% 7.66%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $337.0M $320.0M
YoY Change 5.31% 10.34%
% of Gross Profit 10.42% 5.58%
Operating Expenses $432.0M $439.0M
YoY Change -1.59% 4.28%
Operating Profit $2.801B $5.295B
YoY Change -47.1% 165.68%
Interest Expense $329.0M $528.0M
YoY Change -37.69% 500.0%
% of Operating Profit 11.75% 9.97%
Other Income/Expense, Net $13.00M $18.00M
YoY Change -27.78% 5.88%
Pretax Income $1.835B $848.0M
YoY Change 116.39% 17.78%
Income Tax $431.0M $267.0M
% Of Pretax Income 23.49% 31.49%
Net Earnings $1.339B $550.0M
YoY Change 143.45% 10.89%
Net Earnings / Revenue 4.62% 2.28%
Basic Earnings Per Share $2.86 $1.06
Diluted Earnings Per Share $2.84 $1.06
COMMON SHARES
Basic Shares Outstanding 468.3M shares 517.8M shares
Diluted Shares Outstanding 471.6M shares 520.2M shares

Balance Sheet

Concept 2018 Q2 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.884B $2.161B
YoY Change -12.82% -3.18%
Cash & Equivalents $1.884B $2.161B
Short-Term Investments
Other Short-Term Assets $621.0M $456.0M
YoY Change 36.18% -44.46%
Inventory $4.901B $4.245B
Prepaid Expenses
Receivables $7.173B $5.594B
Other Receivables $0.00 $0.00
Total Short-Term Assets $14.58B $12.46B
YoY Change 17.04% -1.48%
LONG-TERM ASSETS
Property, Plant & Equipment $21.47B $21.29B
YoY Change 0.81% 5.17%
Goodwill $3.270B $3.270B
YoY Change 0.0% -0.15%
Intangibles $866.0M $889.0M
YoY Change -2.59% -0.78%
Long-Term Investments $14.18B $13.51B
YoY Change 4.96% 4.41%
Other Assets $469.0M $413.0M
YoY Change 13.56% 13.46%
Total Long-Term Assets $40.25B $39.37B
YoY Change 2.22% 4.39%
TOTAL ASSETS
Total Short-Term Assets $14.58B $12.46B
Total Long-Term Assets $40.25B $39.37B
Total Assets $54.83B $51.83B
YoY Change 5.78% 2.91%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $8.437B $5.891B
YoY Change 43.22% -6.77%
Accrued Expenses $2.093B $1.826B
YoY Change 14.62% 2.35%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $341.0M $493.0M
YoY Change -30.83% -67.82%
Total Short-Term Liabilities $11.73B $8.874B
YoY Change 32.21% -14.67%
LONG-TERM LIABILITIES
Long-Term Debt $11.02B $9.472B
YoY Change 16.37% 29.22%
Other Long-Term Liabilities $1.920B $2.111B
YoY Change -9.05% -9.48%
Total Long-Term Liabilities $12.94B $11.58B
YoY Change 11.74% 19.88%
TOTAL LIABILITIES
Total Short-Term Liabilities $11.73B $8.874B
Total Long-Term Liabilities $12.94B $11.58B
Total Liabilities $29.87B $28.02B
YoY Change 6.58% 6.57%
SHAREHOLDERS EQUITY
Retained Earnings $17.50B $13.00B
YoY Change 34.61% 3.21%
Common Stock $19.84B $19.63B
YoY Change 1.05% 1.31%
Preferred Stock
YoY Change
Treasury Stock (at cost) $14.12B $9.454B
YoY Change 49.37% 12.83%
Treasury Stock Shares 181.0M shares 131.2M shares
Shareholders Equity $22.54B $22.37B
YoY Change
Total Liabilities & Shareholders Equity $54.83B $51.83B
YoY Change 5.78% 2.91%

Cashflow Statement

Concept 2018 Q2 2017 Q2
OPERATING ACTIVITIES
Net Income $1.339B $550.0M
YoY Change 143.45% 10.89%
Depreciation, Depletion And Amortization $337.0M $320.0M
YoY Change 5.31% 10.34%
Cash From Operating Activities $2.364B $1.865B
YoY Change 26.76% 61.47%
INVESTING ACTIVITIES
Capital Expenditures -$538.0M -$458.0M
YoY Change 17.47% -26.13%
Acquisitions
YoY Change
Other Investing Activities $74.00M $5.000M
YoY Change 1380.0% -103.85%
Cash From Investing Activities -$464.0M -$453.0M
YoY Change 2.43% -39.6%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -841.0M -904.0M
YoY Change -6.97% -784.85%
NET CHANGE
Cash From Operating Activities 2.364B 1.865B
Cash From Investing Activities -464.0M -453.0M
Cash From Financing Activities -841.0M -904.0M
Net Change In Cash 1.059B 508.0M
YoY Change 108.46% -5.4%
FREE CASH FLOW
Cash From Operating Activities $2.364B $1.865B
Capital Expenditures -$538.0M -$458.0M
Free Cash Flow $2.902B $2.323B
YoY Change 24.92% 30.87%

Facts In Submission

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us-gaap Income Loss From Equity Method Investments
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us-gaap Income Loss From Equity Method Investments Net Of Dividends Or Distributions
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us-gaap Repayments Of Debt And Capital Lease Obligations
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TaxesPayableCurrent
1133000000 USD
CY2016Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
122827000 shares
CY2017Q2 us-gaap Treasury Stock Shares
TreasuryStockShares
131218000 shares
CY2017Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
141565000 shares
CY2017Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
141565145 shares
CY2018Q2 us-gaap Treasury Stock Shares
TreasuryStockShares
180952400 shares
CY2018Q2 us-gaap Treasury Stock Shares
TreasuryStockShares
180952000 shares
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
8391000 shares
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
39387000 shares
CY2017Q4 us-gaap Treasury Stock Value
TreasuryStockValue
10378000000 USD
CY2018Q2 us-gaap Treasury Stock Value
TreasuryStockValue
14121000000 USD
us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
666000000 USD
us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
3743000000 USD
CY2017Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
520160000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
522329000 shares
CY2018Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
471638000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
480995000 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Contingently Issuable
WeightedAverageNumberOfSharesContingentlyIssuable
3693000 shares
us-gaap Weighted Average Number Of Shares Contingently Issuable
WeightedAverageNumberOfSharesContingentlyIssuable
3868000 shares
CY2018Q2 us-gaap Weighted Average Number Of Shares Contingently Issuable
WeightedAverageNumberOfSharesContingentlyIssuable
3279000 shares
us-gaap Weighted Average Number Of Shares Contingently Issuable
WeightedAverageNumberOfSharesContingentlyIssuable
3380000 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
514092000 shares
us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
515838000 shares
CY2018Q2 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
465052000 shares
us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
474267000 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
517785000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
519706000 shares
CY2018Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
468331000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
477647000 shares
us-gaap Basis Of Accounting
BasisOfAccounting
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;color:#000000;font-weight:bold;text-decoration:none;">Interim Financial Information</font><font style="font-family:inherit;font-size:10.5pt;font-weight:bold;"> </font></div><div style="line-height:120%;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">The interim financial information presented in the financial statements included in this report is unaudited and includes all known accruals and adjustments necessary, in the opinion of management, for a fair presentation of the consolidated financial position of Phillips&#160;66 and its results of operations and cash flows for the periods presented. Unless otherwise specified, all such adjustments are of a normal and recurring nature. Certain notes and other information have been condensed or omitted from the interim financial statements included in this report. Therefore, these interim financial statements should be read in conjunction with the consolidated financial statements and notes included in our </font><font style="font-family:inherit;font-size:10.5pt;">2017</font><font style="font-family:inherit;font-size:10.5pt;"> Annual Report on Form 10-K. The results of operations for the </font><font style="font-family:inherit;font-size:10.5pt;">three and six months</font><font style="font-family:inherit;font-size:10.5pt;"> ended </font><font style="font-family:inherit;font-size:10.5pt;">June&#160;30, 2018</font><font style="font-family:inherit;font-size:10.5pt;">, are not necessarily indicative of the results to be expected for the full year. Certain prior period financial information has been recast to reflect the current year&#8217;s presentation.</font></div></div>
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%;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;font-weight:bold;">New Accounting Standards</font><font style="font-family:inherit;font-size:10.5pt;font-weight:bold;"> </font></div><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">In February 2018, the FASB issued ASU No. 2018-02, &#8220;Income Statement&#8212;Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.&#8221; This ASU allows for the deferred income tax effects stranded in accumulated other comprehensive income (AOCI) resulting from the Tax Act enacted in December 2017 to be reclassed from AOCI to retained earnings. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of this ASU on our consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">In June 2016, the FASB issued ASU No. 2016-13, &#8220;Financial Instruments&#8212;Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.&#8221; The new standard amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which may result in earlier recognition of losses. Public business entities should apply the guidance in ASU No. 2016-13 for annual periods beginning after December 15, 2019, including interim periods within those annual periods. Early adoption will be permitted for annual periods beginning after December 15, 2018. We are currently evaluating the provisions of ASU No. 2016-13 and assessing the impact on our consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">In February 2016, the FASB issued ASU No. 2016-02, &#8220;Leases (Topic 842).&#8221; The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months.&#160; Leases will continue to be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement.&#160; Similarly, lessors will be required to classify leases as sales-type, finance or operating, with classification affecting the pattern of income recognition.&#160; Classification for both lessees and lessors will be based on an assessment of whether risks and rewards, as well as substantive control have been transferred through a lease contract.&#160; Public business entities should apply the guidance in ASU No. 2016-02 for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted. Entities are required to adopt the ASU using a modified retrospective approach, subject to certain optional practical expedients, and apply the provisions of ASU No. 2016-02 to leasing arrangements existing at or entered into after the earliest comparative period presented in the financial statements. We are currently evaluating the provisions of ASU No. 2016-02 and assessing its impact on our financial statements. As part of our assessment to-date, we have formed an implementation team, selected a software package, and completed software design and configuration within a test environment. Furthermore, we have loaded a majority of our lease population into the software and commenced both software and lease data testing. We expect the adoption of ASU 2016-02 will materially gross up our consolidated balance sheet with the recognition of the ROU assets and operating lease liabilities.&#160; The impact to our consolidated statements of income and cash flows is not expected to be material.&#160; The new standard will also require additional disclosures for financing and operating leases.</font></div></div>

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