2018 Q3 Form 10-Q Financial Statement

#000153470118000109 Filed on October 26, 2018

View on sec.gov

Income Statement

Concept 2018 Q3 2017 Q3
Revenue $29.79B $25.63B
YoY Change 16.24% 18.51%
Cost Of Revenue $26.39B $19.46B
YoY Change 35.56% 0.56%
Gross Profit $3.403B $6.164B
YoY Change -44.79% 170.83%
Gross Profit Margin 11.42% 24.05%
Selling, General & Admin $440.0M $435.0M
YoY Change 1.15% 5.84%
% of Gross Profit 12.93% 7.06%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $346.0M $337.0M
YoY Change 2.67% 15.02%
% of Gross Profit 10.17% 5.47%
Operating Expenses $440.0M $435.0M
YoY Change 1.15% 5.84%
Operating Profit $2.963B $5.729B
YoY Change -48.28% 207.18%
Interest Expense $421.0M $77.00M
YoY Change 446.75% -78.43%
% of Operating Profit 14.21% 1.34%
Other Income/Expense, Net $24.00M $49.00M
YoY Change -51.02% 104.17%
Pretax Income $1.975B $1.256B
YoY Change 57.25% 54.49%
Income Tax $407.0M $407.0M
% Of Pretax Income 20.61% 32.4%
Net Earnings $1.492B $823.0M
YoY Change 81.29% 61.06%
Net Earnings / Revenue 5.01% 3.21%
Basic Earnings Per Share $3.20 $1.60
Diluted Earnings Per Share $3.18 $1.60
COMMON SHARES
Basic Shares Outstanding 466.1M shares 512.9M shares
Diluted Shares Outstanding 469.4M shares 516.0M shares

Balance Sheet

Concept 2018 Q3 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $924.0M $1.547B
YoY Change -40.27% -33.8%
Cash & Equivalents $924.0M $1.547B
Short-Term Investments
Other Short-Term Assets $875.0M $578.0M
YoY Change 51.38% -19.83%
Inventory $5.544B $4.455B
Prepaid Expenses
Receivables $7.971B $6.355B
Other Receivables $0.00 $0.00
Total Short-Term Assets $15.31B $12.94B
YoY Change 18.39% 8.12%
LONG-TERM ASSETS
Property, Plant & Equipment $21.63B $21.30B
YoY Change 1.51% 4.19%
Goodwill $3.270B $3.270B
YoY Change 0.0% 0.09%
Intangibles $874.0M $884.0M
YoY Change -1.13% -0.9%
Long-Term Investments $14.31B $13.90B
YoY Change 2.96% 4.68%
Other Assets $490.0M $421.0M
YoY Change 16.39% 3.44%
Total Long-Term Assets $40.57B $39.78B
YoY Change 1.99% 3.88%
TOTAL ASSETS
Total Short-Term Assets $15.31B $12.94B
Total Long-Term Assets $40.57B $39.78B
Total Assets $55.88B $52.71B
YoY Change 6.02% 4.89%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $8.444B $6.404B
YoY Change 31.86% 11.05%
Accrued Expenses $2.262B $1.928B
YoY Change 17.32% -1.38%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $316.0M $706.0M
YoY Change -55.24% -55.4%
Total Short-Term Liabilities $11.97B $9.905B
YoY Change 20.89% -1.93%
LONG-TERM LIABILITIES
Long-Term Debt $11.02B $9.495B
YoY Change 16.07% 30.52%
Other Long-Term Liabilities $1.783B $1.748B
YoY Change 2.0% -12.6%
Total Long-Term Liabilities $12.80B $11.24B
YoY Change 13.88% 21.22%
TOTAL LIABILITIES
Total Short-Term Liabilities $11.97B $9.905B
Total Long-Term Liabilities $12.80B $11.24B
Total Liabilities $30.09B $28.75B
YoY Change 4.65% 10.83%
SHAREHOLDERS EQUITY
Retained Earnings $18.62B $13.46B
YoY Change 38.28% 5.39%
Common Stock $19.87B $19.66B
YoY Change 1.06% 0.91%
Preferred Stock
YoY Change
Treasury Stock (at cost) $14.53B $9.915B
YoY Change 46.51% 15.86%
Treasury Stock Shares 184.5M shares 136.7M shares
Shareholders Equity $23.32B $22.52B
YoY Change
Total Liabilities & Shareholders Equity $55.88B $52.71B
YoY Change 6.02% 4.89%

Cashflow Statement

Concept 2018 Q3 2017 Q3
OPERATING ACTIVITIES
Net Income $1.492B $823.0M
YoY Change 81.29% 61.06%
Depreciation, Depletion And Amortization $346.0M $337.0M
YoY Change 2.67% 15.02%
Cash From Operating Activities $582.0M $401.0M
YoY Change 45.14% -54.59%
INVESTING ACTIVITIES
Capital Expenditures -$779.0M -$367.0M
YoY Change 112.26% -44.48%
Acquisitions
YoY Change
Other Investing Activities $60.00M -$14.00M
YoY Change -528.57% -112.73%
Cash From Investing Activities -$719.0M -$381.0M
YoY Change 88.71% -30.85%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -819.0M -612.0M
YoY Change 33.82% 166.09%
NET CHANGE
Cash From Operating Activities 582.0M 401.0M
Cash From Investing Activities -719.0M -381.0M
Cash From Financing Activities -819.0M -612.0M
Net Change In Cash -956.0M -592.0M
YoY Change 61.49% -680.39%
FREE CASH FLOW
Cash From Operating Activities $582.0M $401.0M
Capital Expenditures -$779.0M -$367.0M
Free Cash Flow $1.361B $768.0M
YoY Change 77.21% -50.26%

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us-gaap Excise And Sales Taxes
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244000000 USD
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244000000 USD
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us-gaap Foreign Currency Transaction Gain Loss Before Tax
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us-gaap Foreign Currency Transaction Gain Loss Before Tax
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CY2017Q4 us-gaap Goodwill
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CY2018Q3 us-gaap Goodwill
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CY2017Q3 us-gaap Income Loss From Continuing Operations
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us-gaap Income Loss From Continuing Operations
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us-gaap Income Loss From Continuing Operations
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us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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1568000000 USD
us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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3557000000 USD
CY2017Q3 us-gaap Income Loss From Equity Method Investments
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530000000 USD
us-gaap Income Loss From Equity Method Investments
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CY2018Q3 us-gaap Income Loss From Equity Method Investments
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us-gaap Income Loss From Equity Method Investments
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1946000000 USD
us-gaap Income Loss From Equity Method Investments Net Of Dividends Or Distributions
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543000000 USD
us-gaap Income Loss From Equity Method Investments Net Of Dividends Or Distributions
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us-gaap Income Loss Including Portion Attributable To Noncontrolling Interest
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CY2018Q3 us-gaap Income Loss Including Portion Attributable To Noncontrolling Interest
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us-gaap Income Loss Including Portion Attributable To Noncontrolling Interest
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CY2017Q3 us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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us-gaap Increase Decrease In Accounts Payable
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106000000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2017Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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3460000 shares
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us-gaap Interest And Debt Expense
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us-gaap Interest And Debt Expense
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CY2017Q4 us-gaap Inventory Crude Oil Products And Merchandise
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CY2018Q3 us-gaap Inventory Crude Oil Products And Merchandise
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5245000000 USD
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CY2018Q3 us-gaap Inventory Net
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CY2017Q4 us-gaap Lifo Inventory Amount
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2980000000 USD
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5153000000 USD
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CY2018Q3 us-gaap Liabilities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Before Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Before Tax
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
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us-gaap Participating Securities Distributed And Undistributed Earnings Loss Basic
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us-gaap Participating Securities Distributed And Undistributed Earnings Loss Basic
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us-gaap Participating Securities Distributed And Undistributed Earnings Loss Diluted
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us-gaap Participating Securities Distributed And Undistributed Earnings Loss Diluted
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us-gaap Payments For Repurchase Of Common Stock
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CY2018Q3 us-gaap Selling General And Administrative Expense
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us-gaap Selling General And Administrative Expense
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TaxesPayableCurrent
1002000000 USD
CY2018Q3 us-gaap Taxes Payable Current
TaxesPayableCurrent
1151000000 USD
CY2016Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
122827000 shares
CY2017Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
136679000 shares
CY2017Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
141565000 shares
CY2017Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
141565145 shares
CY2018Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
184453242 shares
CY2018Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
184453000 shares
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
13852000 shares
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
42888000 shares
CY2017Q4 us-gaap Treasury Stock Value
TreasuryStockValue
10378000000 USD
CY2018Q3 us-gaap Treasury Stock Value
TreasuryStockValue
14526000000 USD
us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
1127000000 USD
us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
4148000000 USD
CY2017Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
515960000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
520516000 shares
CY2018Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
469440000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
477220000 shares
CY2017Q3 us-gaap Weighted Average Number Of Shares Contingently Issuable
WeightedAverageNumberOfSharesContingentlyIssuable
3776000 shares
us-gaap Weighted Average Number Of Shares Contingently Issuable
WeightedAverageNumberOfSharesContingentlyIssuable
3837000 shares
CY2018Q3 us-gaap Weighted Average Number Of Shares Contingently Issuable
WeightedAverageNumberOfSharesContingentlyIssuable
3107000 shares
us-gaap Weighted Average Number Of Shares Contingently Issuable
WeightedAverageNumberOfSharesContingentlyIssuable
3289000 shares
CY2017Q3 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
509147000 shares
us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
513583000 shares
CY2018Q3 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
463002000 shares
us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
470471000 shares
CY2017Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
512923000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
517420000 shares
CY2018Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
466109000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
473760000 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 nine months</font><font style="font-family:inherit;font-size:10.5pt;"> ended </font><font style="font-family:inherit;font-size:10.5pt;">September&#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. We plan to adopt ASU No. 2016-02 by recognizing a cumulative-effect adjustment to the opening balance of retained earnings as of our adoption date of January 1, 2019. We are currently evaluating the provisions of ASU No. 2016-02 and assessing its impact on our consolidated 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 continue to load our lease population into the software and test the software configuration, lease data and system reports. We expect the adoption of ASU No. 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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