2009 Q4 Form 10-K Financial Statement

#000119312510027861 Filed on February 11, 2010

View on sec.gov

Income Statement

Concept 2009 Q4 2009 2008 Q4
Revenue $13.98B $52.92B $14.77B
YoY Change -5.36% -11.44% 0.38%
Cost Of Revenue $10.32B $9.956B $10.83B
YoY Change -4.72% -7.85% 0.92%
Gross Profit $3.662B $42.96B $3.942B
YoY Change -7.1% -12.23% -1.08%
Gross Profit Margin 26.2% 81.19% 26.69%
Selling, General & Admin $1.555B $6.036B $1.444B
YoY Change 7.69% -10.23% -15.6%
% of Gross Profit 42.46% 14.05% 36.63%
Research & Development $421.0M $1.558B $490.0M
YoY Change -14.08% -12.03% 1.87%
% of Gross Profit 11.5% 3.63% 12.43%
Depreciation & Amortization $333.0M $852.0M $350.0M
YoY Change -4.86% -1.5% 12.9%
% of Gross Profit 9.09% 1.98% 8.88%
Operating Expenses $1.878B $7.594B $1.934B
YoY Change -2.9% -10.61% -11.77%
Operating Profit $1.784B $6.377B $2.008B
YoY Change -11.16% -15.08% 11.99%
Interest Expense -$160.0M $705.0M -$171.0M
YoY Change -6.43% 2.32% -1.72%
% of Operating Profit -8.97% 11.06% -8.52%
Other Income/Expense, Net
YoY Change
Pretax Income $1.624B $2.584B $1.632B
YoY Change -0.49% -10.87% 0.8%
Income Tax $455.0M $1.581B $403.0M
% Of Pretax Income 28.02% 61.18% 24.69%
Net Earnings $1.073B $3.829B $1.145B
YoY Change -6.29% -18.34% 8.02%
Net Earnings / Revenue 7.68% 7.24% 7.75%
Basic Earnings Per Share $1.17 $4.17
Diluted Earnings Per Share $1.15 $4.12 $1.229M
COMMON SHARES
Basic Shares Outstanding 937.5M shares 917.4M shares
Diluted Shares Outstanding 928.8M shares

Balance Sheet

Concept 2009 Q4 2009 2008 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.449B $4.449B $4.327B
YoY Change 2.82% 2.82% 49.0%
Cash & Equivalents $4.449B $4.449B $4.327B
Short-Term Investments
Other Short-Term Assets $1.078B $2.767B $769.0M
YoY Change 40.18% 19.27% -65.39%
Inventory $7.509B $7.509B $8.340B
Prepaid Expenses
Receivables $8.469B $8.469B $9.480B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $23.19B $23.19B $24.47B
YoY Change -5.2% -5.2% 10.86%
LONG-TERM ASSETS
Property, Plant & Equipment $6.364B $6.364B $6.348B
YoY Change 0.25% 0.25% 0.83%
Goodwill $16.30B $15.36B
YoY Change 6.09%
Intangibles $3.538B $3.443B
YoY Change 2.76%
Long-Term Investments $1.047B $1.047B $1.002B
YoY Change 4.49% 4.49% 4.05%
Other Assets $3.219B $5.321B $2.581B
YoY Change 24.72% -14.37% -51.92%
Total Long-Term Assets $32.57B $32.57B $32.37B
YoY Change 0.61% 0.61% -0.41%
TOTAL ASSETS
Total Short-Term Assets $23.19B $23.19B $24.47B
Total Long-Term Assets $32.57B $32.57B $32.37B
Total Assets $55.76B $55.76B $56.84B
YoY Change -1.89% -1.89% 4.14%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.634B $4.634B $5.594B
YoY Change -17.16% -17.16% 10.58%
Accrued Expenses $11.79B $6.177B $12.07B
YoY Change -2.3% -5.17% 7.02%
Deferred Revenue
YoY Change
Short-Term Debt $254.0M $254.0M $1.023B
YoY Change -75.17% -75.17% -5.71%
Long-Term Debt Due $1.233B $1.233B $1.116B
YoY Change 10.48% 10.48% 2225.0%
Total Short-Term Liabilities $17.91B $17.91B $19.80B
YoY Change -9.54% -9.54% 13.36%
LONG-TERM LIABILITIES
Long-Term Debt $8.257B $8.257B $9.337B
YoY Change -11.57% -11.57% 16.49%
Other Long-Term Liabilities $4.054B $8.204B $4.198B
YoY Change -3.43% -23.84% -38.48%
Total Long-Term Liabilities $4.054B $16.46B $4.198B
YoY Change -3.43% -18.14% -71.71%
TOTAL LIABILITIES
Total Short-Term Liabilities $17.91B $17.91B $19.80B
Total Long-Term Liabilities $4.054B $16.46B $4.198B
Total Liabilities $34.37B $35.70B $39.91B
YoY Change -13.87% -13.09% 20.14%
SHAREHOLDERS EQUITY
Retained Earnings $27.40B $25.03B
YoY Change 9.44%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $15.41B $14.32B
YoY Change 7.63%
Treasury Stock Shares 445.0M shares 426.1K shares
Shareholders Equity $20.07B $20.07B $15.76B
YoY Change
Total Liabilities & Shareholders Equity $55.76B $55.76B $56.84B
YoY Change -1.89% -1.89% 4.14%

Cashflow Statement

Concept 2009 Q4 2009 2008 Q4
OPERATING ACTIVITIES
Net Income $1.073B $3.829B $1.145B
YoY Change -6.29% -18.34% 8.02%
Depreciation, Depletion And Amortization $333.0M $852.0M $350.0M
YoY Change -4.86% -1.5% 12.9%
Cash From Operating Activities $1.475B $5.353B $2.020B
YoY Change -26.98% -13.11% -1.22%
INVESTING ACTIVITIES
Capital Expenditures -$325.0M -$826.0M -$406.0M
YoY Change -19.95% -32.07% -10.96%
Acquisitions $703.0M
YoY Change -43.85%
Other Investing Activities -$48.00M -$358.0M -$740.0M
YoY Change -93.51% -717.24% 29.82%
Cash From Investing Activities -$373.0M -$1.104B -$1.146B
YoY Change -67.45% -52.74% 11.7%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $1.100B
YoY Change -65.19%
Debt Paid & Issued, Net $1.012B
YoY Change 2008.33%
Cash From Financing Activities -1.283B -$4.191B -2.000M
YoY Change 64050.0% 87.27% -99.79%
NET CHANGE
Cash From Operating Activities 1.475B $5.353B 2.020B
Cash From Investing Activities -373.0M -$1.104B -1.146B
Cash From Financing Activities -1.283B -$4.191B -2.000M
Net Change In Cash -181.0M $58.00M 872.0M
YoY Change -120.76% -96.35% 1221.21%
FREE CASH FLOW
Cash From Operating Activities $1.475B $5.353B $2.020B
Capital Expenditures -$325.0M -$826.0M -$406.0M
Free Cash Flow $1.800B $6.179B $2.426B
YoY Change -25.8% -16.24% -3.0%

Facts In Submission

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<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0px;">Note </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;">13</font><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;">: </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;">Financial Instruments</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:24.5px;">We enter into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments </font><font style="font-family:Times New Roman;font-size:10pt;">under the Derivatives and Hedging Topic of the FASB ASC </font><font style="font-family:Times New Roman;font-size:10pt;">and those utilized as economic hedges. We operate internationally and, in the normal course of business, are exposed to fluctuations in interest rates, foreign exchange rates and commodity prices. These fluctuations can increase the costs of financing, investing and operating the business. We have used derivative instruments, including swaps, forward contracts and options to manage certain foreign currency, interest rate and commodity price exposures. </font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:24.5px;">By nature, all financial instruments involve market and credit risks. We enter into derivative and other financial instruments with major investment grade financial institutions and have policies to monitor the credit risk of those counterparties. We limit counterparty exposure and concentration of risk by diversifying counterparties. W</font><font style="font-family:Times New Roman;font-size:10pt;">hile there can be no assurance, w</font><font style="font-family:Times New Roman;font-size:10pt;">e do not anticipate </font><font style="font-family:Times New Roman;font-size:10pt;">any material </font><font style="font-family:Times New Roman;font-size:10pt;">non-performance by any of these counterparties. </font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0px;">F</font><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;">OREIGN CURRENCY FORWARD CONTRACTS</font><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;">.</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">We manage our foreign currency transaction risks to acceptable limits through the use of derivatives to hedge forecasted cash flows associated with foreign currency </font><font style="font-family:Times New Roman;font-size:10pt;">transaction exposures </font><font style="font-family:Times New Roman;font-size:10pt;">which are accounted for as cash flow hedges, as deemed appropriate. 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Differences from carrying amounts are attributable to interest and or credit rate changes subsequent to when the transaction occurred. The values of marketable equity securities represent our investment in common stock that is classified as available</font><font style="font-family:Times New Roman;font-size:10pt;">-</font><font style="font-family:Times New Roman;font-size:10pt;">for</font><font style="font-family:Times New Roman;font-size:10pt;">-</font><font style="font-family:Times New Roman;font-size:10pt;">sale and is accounted for at fair value.</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">The fair values of cash and cash equivalents, </font><font style="font-family:Times New Roman;font-size:10pt;">accounts receivable</font><font style="font-family:Times New Roman;font-size:10pt;">,</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">net</font><font style="font-family:Times New Roman;font-size:10pt;">,</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">short-term </font><font style="font-family:Times New Roman;font-size:10pt;">borrowings</font><font style="font-family:Times New Roman;font-size:10pt;">,</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">and accounts payable approximate the carrying amounts due to the short-term maturities of these instruments</font><font style="font-family:Times New Roman;font-size:10pt;">.</font><font style="font-family:Times New Roman;font-size:10pt;"> </font></p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:7.5pt;margin-left:0px;">&#160;</font></p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:23.1px;">We have outstanding financing and rental commitments </font><font style="font-family:Times New Roman;font-size:10pt;">totaling $</font><font style="font-family:Times New Roman;font-size:10pt;">909</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">million at December 31, 2009. Risks associated with changes in interest rates on these commitments are mitigated by the fact that interest rates are variable during the commitment term and are set at the date of funding based on current market conditions, the fair value of the underlying collateral and the credit worthiness of the customers. As a result, the fair value of these financings is expected to equal the amounts funded. The fair value of the commitment itself is not readily determinable and is not considered significant</font><font style="font-family:Times New Roman;font-size:10pt;">. Additional information pertaining to these commitments is included in Note </font><font style="font-family:Times New Roman;font-size:10pt;">4</font><font style="font-family:Times New Roman;font-size:10pt;">.</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p>

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