2018 Form 10-K Financial Statement

#000163391719000043 Filed on February 07, 2019

View on sec.gov

Income Statement

Concept 2018 2017 2016
Revenue $15.45B $13.09B $10.84B
YoY Change 18.0% 20.77% 17.24%
Cost Of Revenue $8.337B $6.794B $5.701B
YoY Change 22.71% 19.17% 25.88%
Gross Profit $7.114B $6.300B $5.141B
YoY Change 12.92% 22.54% 8.94%
Gross Profit Margin 46.04% 48.11% 47.42%
Selling, General & Admin $2.855B $2.400B $2.117B
YoY Change 18.96% 13.37% 16.96%
% of Gross Profit 40.13% 38.1% 41.18%
Research & Development $1.071B $953.0M $834.0M
YoY Change 12.38% 14.27% 5.3%
% of Gross Profit 15.05% 15.13% 16.22%
Depreciation & Amortization $776.0M $805.0M $724.0M
YoY Change -3.6% 11.19% 19.08%
% of Gross Profit 10.91% 12.78% 14.08%
Operating Expenses $13.26B $10.97B $9.256B
YoY Change 20.88% 18.49% 18.86%
Operating Profit $2.194B $2.127B $1.586B
YoY Change 3.15% 34.11% 8.56%
Interest Expense $77.00M $7.000M $3.000M
YoY Change 1000.0% 133.33% -82.35%
% of Operating Profit 3.51% 0.33% 0.19%
Other Income/Expense, Net $182.0M $73.00M $45.00M
YoY Change 149.32% 62.22% 66.67%
Pretax Income $2.376B $2.200B $1.631B
YoY Change 8.0% 34.89% 9.61%
Income Tax $319.0M $405.0M $230.0M
% Of Pretax Income 13.43% 18.41% 14.1%
Net Earnings $2.057B $1.795B $1.401B
YoY Change 14.6% 28.12% 14.09%
Net Earnings / Revenue 13.31% 13.71% 12.92%
Basic Earnings Per Share $1.74 $1.49 $1.16
Diluted Earnings Per Share $1.71 $1.47 $1.15
COMMON SHARES
Basic Shares Outstanding 1.184B shares 1.203B shares 1.210B shares
Diluted Shares Outstanding 1.203B shares 1.221B shares 1.218B shares

Balance Sheet

Concept 2018 2017 2016
SHORT-TERM ASSETS
Cash & Short-Term Investments $9.109B $5.695B $4.975B
YoY Change 59.95% 14.47% 45.85%
Cash & Equivalents $7.575B $2.883B $1.590B
Short-Term Investments $1.534B $2.812B $3.385B
Other Short-Term Assets $947.0M $713.0M $833.0M
YoY Change 32.82% -14.41% 27.18%
Inventory
Prepaid Expenses
Receivables $313.0M $283.0M $214.0M
Other Receivables $22.59B $25.95B $19.71B
Total Short-Term Assets $32.96B $32.65B $25.73B
YoY Change 0.97% 26.86% 24.63%
LONG-TERM ASSETS
Property, Plant & Equipment $1.724B $1.528B $1.482B
YoY Change 12.83% 3.1% 10.27%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $971.0M $1.961B $1.539B
YoY Change -50.48% 27.42% -34.45%
Other Assets $565.0M $133.0M $79.00M
YoY Change 324.81% 68.35% -30.7%
Total Long-Term Assets $10.37B $8.129B $7.370B
YoY Change 27.56% 10.3% -10.48%
TOTAL ASSETS
Total Short-Term Assets $32.96B $32.65B $25.73B
Total Long-Term Assets $10.37B $8.129B $7.370B
Total Assets $43.33B $40.77B $33.10B
YoY Change 6.27% 23.17% 14.62%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $21.84B $20.00B $15.36B
YoY Change 9.22% 30.24% 23.77%
Accrued Expenses $1.935B $1.563B $1.400B
YoY Change 23.8% 11.64% 21.32%
Deferred Revenue
YoY Change
Short-Term Debt $1.998B $1.000B $0.00
YoY Change 99.8%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $25.90B $22.86B $16.88B
YoY Change 13.3% 35.46% 23.95%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $1.933B $1.917B
YoY Change 0.83%
Total Long-Term Liabilities $1.933B $1.917B $0.00
YoY Change 0.83% -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $25.90B $22.86B $16.88B
Total Long-Term Liabilities $1.933B $1.917B $0.00
Total Liabilities $27.95B $24.78B $18.39B
YoY Change 12.78% 34.74% 21.62%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $15.39B $15.99B $14.71B
YoY Change
Total Liabilities & Shareholders Equity $43.33B $40.77B $33.10B
YoY Change 6.27% 23.17% 14.62%

Cashflow Statement

Concept 2018 2017 2016
OPERATING ACTIVITIES
Net Income $2.057B $1.795B $1.401B
YoY Change 14.6% 28.12% 14.09%
Depreciation, Depletion And Amortization $776.0M $805.0M $724.0M
YoY Change -3.6% 11.19% 19.08%
Cash From Operating Activities $5.480B $2.531B $3.158B
YoY Change 116.52% -19.85% 24.04%
INVESTING ACTIVITIES
Capital Expenditures $823.0M $667.0M $669.0M
YoY Change 23.39% -0.3% -7.34%
Acquisitions $2.124B $323.0M $19.00M
YoY Change 557.59% 1600.0% -98.45%
Other Investing Activities $1.644B -$3.818B -$5.235B
YoY Change -143.06% -27.07% -28.44%
Cash From Investing Activities $821.0M -$4.485B -$5.904B
YoY Change -118.31% -24.03% -26.55%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $3.356B $862.0M $886.0M
YoY Change 289.33% -2.71% -1281.33%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$1.240B $4.084B $2.038B
YoY Change -130.36% 100.39% -56.9%
NET CHANGE
Cash From Operating Activities $5.480B $2.531B $3.158B
Cash From Investing Activities $821.0M -$4.485B -$5.904B
Cash From Financing Activities -$1.240B $4.084B $2.038B
Net Change In Cash $4.948B $2.166B -$708.0M
YoY Change 128.44% -405.93% -7.33%
FREE CASH FLOW
Cash From Operating Activities $5.480B $2.531B $3.158B
Capital Expenditures $823.0M $667.0M $669.0M
Free Cash Flow $4.657B $1.864B $2.489B
YoY Change 149.84% -25.11% 36.46%

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4948000000 USD
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CY2018Q4 us-gaap Commitments And Contingencies
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1200000000 shares
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2277000000 USD
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CY2018 us-gaap Current Federal Tax Expense Benefit
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180000000 USD
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278000000 USD
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178000000 USD
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490000000 USD
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895000000 USD
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2800000000 USD
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1100000000 USD
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320000000 USD
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1.47
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0.42
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1.71
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0 USD
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36000000 USD
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0.014
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0.000
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0.016
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218000000 USD
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130000000 USD
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91000000 USD
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91000000 USD
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40000000 USD
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40000000 USD
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CY2018 us-gaap Excess Tax Benefit From Share Based Compensation Operating Activities
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1162000000 USD
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1308000000 USD
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213000000 USD
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74000000 USD
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74000000 USD
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140000000 USD
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194000000 USD
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1330000000 USD
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2133000000 USD
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168000000 USD
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825000000 USD
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171000000 USD
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1451000000 USD
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1981000000 USD
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4000000 USD
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1631000000 USD
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2200000000 USD
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2376000000 USD
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1973000000 USD
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2793000000 USD
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2850000000 USD
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48000000 USD
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75000000 USD
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124000000 USD
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13000000 USD
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13000000 USD
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57000000 USD
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230000000 USD
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405000000 USD
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319000000 USD
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310000000 USD
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443000000 USD
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465000000 USD
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0.25
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0.36
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IncomeTaxesPaid
117000000 USD
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IncomeTaxesPaid
328000000 USD
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11000000 USD
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62000000 USD
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26000000 USD
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18000000 USD
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23000000 USD
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6000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
1000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
35000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
20000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
51000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
112000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
287000000 USD
CY2018Q4 us-gaap Unused Commitments To Extend Credit
UnusedCommitmentsToExtendCredit
1800000000 USD
CY2016 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
11000000 USD
CY2017 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
50000000 USD
CY2018 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
39000000 USD
CY2016 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
1218000000 shares
CY2017Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
1216000000 shares
CY2017 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
1221000000 shares
CY2017Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
1215000000 shares
CY2017Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
1223000000 shares
CY2017Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
1228000000 shares
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
14000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
61000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
120000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
1000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
3000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
5000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
757000000 USD
CY2017Q4 us-gaap Unused Commitments To Extend Credit
UnusedCommitmentsToExtendCredit
26400000000 USD
CY2018Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
1217000000 shares
CY2018Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
1202000000 shares
CY2018Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
1199000000 shares
CY2018Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
1196000000 shares
CY2018 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
1203000000 shares
CY2016 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
1210000000 shares
CY2017Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
1203000000 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
1202000000 shares
CY2017Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
1202000000 shares
CY2017Q4 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
1203000000 shares
CY2017 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
1203000000 shares
CY2018Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
1192000000 shares
CY2018Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
1187000000 shares
CY2018Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
1181000000 shares
CY2018Q4 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
1177000000 shares
CY2018 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
1184000000 shares
CY2018 us-gaap Advertising Cost Policy Expensed Advertising Cost
AdvertisingCostPolicyExpensedAdvertisingCost
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Advertising expense</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We expense the cost of producing advertisements at the time production occurs and expense the cost of communicating advertisements in the period during which the advertising space or airtime is used as sales and marketing expense. Online advertising expenses are recognized based on the terms of the individual agreements, which is generally over the greater of the ratio of the number of impressions delivered over the total number of contracted impressions, on a pay-per-click basis, or on a straight-line basis over the term of the contract.</font></div></div>
CY2018 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Concentrations of risk</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our cash, cash equivalents, accounts receivable, loans and interest receivable, and funds receivable and customer accounts are potentially subject to concentration of credit risk. Cash, cash equivalents, and customer accounts are placed with financial institutions that management believes are of high credit quality. In addition, funds receivable are generated primarily with financial institutions which management believes are of high credit quality. We invest our cash, cash equivalents, and customer accounts primarily in highly liquid, highly rated instruments which are uninsured. From time to time, we may also have corporate deposit balances with financial services institutions which exceed the Federal Deposit Insurance Corporation (&#8220;FDIC&#8221;) insurance limit of $250,000. As part of our cash management process, we perform periodic evaluations of the relative credit standing of these financial institutions. Our accounts receivable are derived from revenue earned from customers located in the U.S. and internationally. Our loans and interest receivable are derived from merchant and consumer financing activities for customers located in the U.S. and internationally.</font></div></div>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of estimates</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (&#8220;GAAP&#8221;) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction and loan losses, loss contingencies, income taxes, revenue recognition, and the valuation of goodwill and intangible assets. We base our estimates on historical experience and various other assumptions which we believe to be reasonable under the circumstances. Actual results could differ from those estimates.</font></div></div>

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