2023 Q3 Form 10-K Financial Statement

#000113778923000049 Filed on August 04, 2023

View on sec.gov

Income Statement

Concept 2023 Q3 2023 Q2 2023
Revenue $1.454B $1.602B $7.384B
YoY Change -44.67% -42.83% -36.68%
Cost Of Revenue $1.305B $1.298B $6.033B
YoY Change -30.18% -34.97% -26.35%
Gross Profit $149.0M $304.0M $1.351B
YoY Change -80.37% -62.28% -61.06%
Gross Profit Margin 10.25% 18.98% 18.3%
Selling, General & Admin $105.0M $114.0M $491.0M
YoY Change -29.53% -19.15% -12.16%
% of Gross Profit 70.47% 37.5% 36.34%
Research & Development $171.0M $172.0M $797.0M
YoY Change -30.77% -26.18% -15.3%
% of Gross Profit 114.77% 56.58% 58.99%
Depreciation & Amortization $76.00M $104.0M $513.0M
YoY Change -40.16% -7.14% 13.75%
% of Gross Profit 51.01% 34.21% 37.97%
Operating Expenses $276.0M $286.0M $1.288B
YoY Change -30.65% -23.53% -14.13%
Operating Profit -$129.0M $18.00M -$342.0M
YoY Change -135.73% -95.8% -117.49%
Interest Expense $84.00M -$78.00M $313.0M
YoY Change -231.25% -223.81% 25.7%
% of Operating Profit -433.33%
Other Income/Expense, Net -$18.00M -$16.00M -$154.0M
YoY Change 20.0% -79.49% -44.2%
Pretax Income -$147.0M -$85.00M -$496.0M
YoY Change -152.31% -124.22% -129.54%
Income Tax $37.00M $7.000M $33.00M
% Of Pretax Income
Net Earnings -$184.0M -$92.00M -$529.0M
YoY Change -166.67% -126.59% -132.08%
Net Earnings / Revenue -12.65% -5.74% -7.16%
Basic Earnings Per Share -$0.88 -$2.56
Diluted Earnings Per Share -$0.88 -$0.44 -$2.56
COMMON SHARES
Basic Shares Outstanding 207.4M shares 207.1M shares 207.0M shares
Diluted Shares Outstanding 208.0M shares 207.0M shares

Balance Sheet

Concept 2023 Q3 2023 Q2 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $795.0M $786.0M $788.0M
YoY Change 29.27% -30.93% 28.13%
Cash & Equivalents $795.0M $786.0M $714.0M
Short-Term Investments $74.00M
Other Short-Term Assets $268.0M $358.0M $356.0M
YoY Change -16.51% 20.13% 10.9%
Inventory $1.052B $1.140B $1.140B
Prepaid Expenses
Receivables $521.0M $621.0M $621.0M
Other Receivables $109.0M $167.0M $0.00
Total Short-Term Assets $2.636B $2.905B $2.905B
YoY Change -34.64% -31.79% -27.97%
LONG-TERM ASSETS
Property, Plant & Equipment $1.652B $1.706B $2.102B
YoY Change -26.22% -22.35% -6.12%
Goodwill $1.237B $1.237B
YoY Change 0.0% 0.0%
Intangibles $0.00
YoY Change -100.0%
Long-Term Investments $55.00M $55.00M $16.00M
YoY Change -9.84% -33.73% -11.11%
Other Assets $584.0M $591.0M $1.296B
YoY Change 98.64% 86.44% -9.12%
Total Long-Term Assets $4.560B $4.651B $4.651B
YoY Change -7.15% -4.81% -5.29%
TOTAL ASSETS
Total Short-Term Assets $2.636B $2.905B $2.905B
Total Long-Term Assets $4.560B $4.651B $4.651B
Total Assets $7.196B $7.556B $7.556B
YoY Change -19.54% -17.38% -15.52%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.511B $1.603B $1.603B
YoY Change -26.58% -17.71% -22.11%
Accrued Expenses $790.0M $748.0M $781.0M
YoY Change 32.55% 15.97% -14.46%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $63.00M $63.00M
YoY Change -100.0% 110.0% -89.21%
Total Short-Term Liabilities $2.473B $2.592B $2.592B
YoY Change -30.44% -10.03% -27.09%
LONG-TERM LIABILITIES
Long-Term Debt $5.666B $5.388B $5.388B
YoY Change 11.93% -4.03% 6.44%
Other Long-Term Liabilities $667.0M $685.0M $775.0M
YoY Change 394.07% 372.41% 255.5%
Total Long-Term Liabilities $6.333B $6.073B $6.163B
YoY Change 21.86% 5.45% 16.72%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.473B $2.592B $2.592B
Total Long-Term Liabilities $6.333B $6.073B $6.163B
Total Liabilities $8.898B $8.755B $8.755B
YoY Change 0.71% 0.36% -0.91%
SHAREHOLDERS EQUITY
Retained Earnings -$9.025B -$8.670B
YoY Change 26.81% 28.12%
Common Stock $7.373B
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$1.702B -$1.199B -$1.199B
YoY Change
Total Liabilities & Shareholders Equity $7.196B $7.556B $7.556B
YoY Change -19.54% -17.38% -15.52%

Cashflow Statement

Concept 2023 Q3 2023 Q2 2023
OPERATING ACTIVITIES
Net Income -$184.0M -$92.00M -$529.0M
YoY Change -166.67% -126.59% -132.08%
Depreciation, Depletion And Amortization $76.00M $104.0M $513.0M
YoY Change -40.16% -7.14% 13.75%
Cash From Operating Activities $127.0M $217.0M $942.0M
YoY Change -29.44% -52.83% -43.15%
INVESTING ACTIVITIES
Capital Expenditures $70.00M $50.00M $316.0M
YoY Change -197.22% -151.55% -17.06%
Acquisitions
YoY Change
Other Investing Activities $0.00 $520.0M $533.0M
YoY Change -100.0% 1737.93%
Cash From Investing Activities -$70.00M $470.0M $217.0M
YoY Change 18.64% -584.54% -161.65%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $408.0M
YoY Change -77.32%
Debt Paid & Issued, Net $1.288B $1.578B
YoY Change 125.11%
Cash From Financing Activities -$49.00M -667.0M -$988.0M
YoY Change -92.39% -12.24% -47.97%
NET CHANGE
Cash From Operating Activities $127.0M 217.0M $942.0M
Cash From Investing Activities -$70.00M 470.0M $217.0M
Cash From Financing Activities -$49.00M -667.0M -$988.0M
Net Change In Cash $9.000M 20.00M $171.0M
YoY Change -101.72% -105.04% -128.79%
FREE CASH FLOW
Cash From Operating Activities $127.0M $217.0M $942.0M
Capital Expenditures $70.00M $50.00M $316.0M
Free Cash Flow $57.00M $167.0M $626.0M
YoY Change -77.38% -70.02% -50.94%

Facts In Submission

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The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Fiscal years 2023, 2022 and 2021 are comprised of 52 weeks and ended on June 30, 2023, July 1, 2022 and July 2, 2021, respectively. All references to years in these Notes to Consolidated Financial Statements represent fiscal years unless otherwise noted. Fiscal year 2026 will also be comprised of 53 weeks and will end on July 3, 2026.
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<div style="margin-bottom:5pt;margin-top:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Concentration of Credit Risk. </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s customer base is concentrated with a small number of customers. The Company does not generally require collateral or other security to support accounts receivable. To reduce credit risk, the Company performs ongoing credit evaluations on its customers’ financial condition. The Company establishes allowances for expected credit losses based upon factors surrounding the credit risk of customers, global macroeconomic conditions and an analysis of specific exposures. Two customers and one customer accounted for more than 10% of the Company’s accounts receivable as of June 30, 2023 and July 1, 2022, respectively.</span></div><div style="margin-bottom:5pt;margin-top:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, investments and foreign currency forward exchange contracts. The Company mitigates concentrations of credit risk in its financial instruments through diversification, by investing in highly-rated securities and/or major multinational companies. </span></div><div style="margin-bottom:5pt;margin-top:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In entering into foreign currency forward exchange contracts, the Company assumes the risk that might arise from the possible inability of counterparties to meet the terms of their contracts. The counterparties to these contracts are major multinational commercial and investment banks, and the Company has not incurred and does not expect any losses as a result of counterparty defaults.</span></div>
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CY2023Q2 us-gaap Stock Repurchase Program Remaining Authorized Repurchase Amount1
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<div style="margin-bottom:5pt;margin-top:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The following table sets forth information with respect to repurchases of the Company’s ordinary shares during fiscal years 2023, 2022 and 2021:</span></div><div style="margin-top:5pt;text-align:justify"><table style="border-collapse:collapse;display:inline-table;margin-bottom:5pt;vertical-align:text-bottom;width:100.000%"><tr><td style="width:1.0%"></td><td style="width:77.847%"></td><td style="width:0.1%"></td><td style="width:0.1%"></td><td style="width:0.530%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:8.695%"></td><td style="width:0.1%"></td><td style="width:0.1%"></td><td style="width:0.530%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:8.698%"></td><td style="width:0.1%"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:8pt;font-weight:700;line-height:100%">(In millions)</span></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:8pt;font-weight:700;line-height:100%">Number of Shares Repurchased</span></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:8pt;font-weight:700;line-height:100%">Dollar Value of Shares Repurchased</span></td></tr><tr><td colspan="3" style="display:none"></td><td colspan="3" style="display:none"></td><td colspan="3" style="display:none"></td><td colspan="3" style="display:none"></td><td colspan="3" style="display:none"></td></tr><tr><td colspan="3" style="display:none"></td><td colspan="3" style="display:none"></td><td colspan="3" style="display:none"></td><td colspan="3" style="display:none"></td><td colspan="3" style="display:none"></td></tr><tr><td colspan="3" style="background-color:#cceeff;border-top:1pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Cumulative repurchased through July 3, 2020</span></td><td colspan="3" style="background-color:#cceeff;padding:0 1pt"></td><td colspan="2" style="background-color:#cceeff;border-top:1pt solid #000000;padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">392 </span></td><td style="background-color:#cceeff;border-top:1pt solid #000000;padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"></td><td colspan="3" style="background-color:#cceeff;padding:0 1pt"></td><td style="background-color:#cceeff;border-top:1pt solid #000000;padding:2px 0 2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">$</span></td><td style="background-color:#cceeff;border-top:1pt solid #000000;padding:2px 0;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">12,386 </span></td><td style="background-color:#cceeff;border-top:1pt solid #000000;padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Repurchased in fiscal year 2021</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:100%;position:relative;top:-3.5pt;vertical-align:baseline">(1)</span></div></td><td colspan="3" style="padding:0 1pt"></td><td colspan="2" style="padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">34 </span></td><td style="padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="2" style="padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">2,081 </span></td><td style="padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"></td></tr><tr><td colspan="3" style="background-color:#cceeff;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Cumulative repurchased through July 2, 2021</span></td><td colspan="3" style="background-color:#cceeff;padding:0 1pt"></td><td colspan="2" style="background-color:#cceeff;border-top:1pt solid #000000;padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">426 </span></td><td style="background-color:#cceeff;border-top:1pt solid #000000;padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"></td><td colspan="3" style="background-color:#cceeff;padding:0 1pt"></td><td colspan="2" style="background-color:#cceeff;border-top:1pt solid #000000;padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">14,467 </span></td><td style="background-color:#cceeff;border-top:1pt solid #000000;padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Repurchased in fiscal year 2022</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:100%;position:relative;top:-3.5pt;vertical-align:baseline">(1)</span></div></td><td colspan="3" style="padding:0 1pt"></td><td colspan="2" style="padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">21 </span></td><td style="padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="2" style="padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">1,857 </span></td><td style="padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"></td></tr><tr><td colspan="3" style="background-color:#cceeff;padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Cumulative repurchased through July 1, 2022</span></td><td colspan="3" style="background-color:#cceeff;padding:0 1pt"></td><td colspan="2" style="background-color:#cceeff;border-top:1pt solid #000;padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">447 </span></td><td style="background-color:#cceeff;border-top:1pt solid #000;padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"></td><td colspan="3" style="background-color:#cceeff;border-top:1pt solid #000;padding:0 1pt"></td><td colspan="2" style="background-color:#cceeff;border-top:1pt solid #000;padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">16,324 </span></td><td style="background-color:#cceeff;border-top:1pt solid #000;padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Repurchased in fiscal year 2023</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:100%;position:relative;top:-3.5pt;vertical-align:baseline">(1)</span></div></td><td colspan="3" style="background-color:#ffffff;padding:0 1pt"></td><td colspan="2" style="background-color:#ffffff;padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">6 </span></td><td style="background-color:#ffffff;padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"></td><td colspan="3" style="background-color:#ffffff;padding:0 1pt"></td><td colspan="2" style="background-color:#ffffff;padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">444 </span></td><td style="background-color:#ffffff;padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"></td></tr><tr><td colspan="3" style="background-color:#cceeff;padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Cumulative repurchased through June 30, 2023</span></td><td colspan="3" style="background-color:#cceeff;padding:0 1pt"></td><td colspan="2" style="background-color:#cceeff;border-bottom:3pt double #000;border-top:1pt solid #000;padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">453 </span></td><td style="background-color:#cceeff;border-bottom:3pt double #000;border-top:1pt solid #000;padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"></td><td colspan="3" style="background-color:#cceeff;padding:0 1pt"></td><td style="background-color:#cceeff;border-bottom:3pt double #000;border-top:1pt solid #000;padding:2px 0 2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">$</span></td><td style="background-color:#cceeff;border-bottom:3pt double #000;border-top:1pt solid #000;padding:2px 0;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">16,768 </span></td><td style="background-color:#cceeff;border-bottom:3pt double #000;border-top:1pt solid #000;padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"></td></tr></table></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">___________________________________________________</span></div><div style="padding-left:18pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:5.52pt;font-weight:400;line-height:120%;position:relative;top:-2.97pt;vertical-align:baseline">(1) </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:8.5pt;font-weight:400;line-height:120%">    For fiscal years 2023, 2022 and 2021, includes net share settlements of $44 million, $51 million and $33 million for 1 million, 1 million and 1 million shares, respectively, in connection with tax withholding related to vesting of restricted share units</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">.</span></div>
CY2020Q3 stx Stock Repurchased Period To Date Shares
StockRepurchasedPeriodToDateShares
392000000 shares
CY2020Q3 stx Stock Repurchased Period To Date Value
StockRepurchasedPeriodToDateValue
12386000000 usd
CY2021 us-gaap Stock Repurchased And Retired During Period Shares
StockRepurchasedAndRetiredDuringPeriodShares
34000000 shares
CY2021 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
2081000000 usd
CY2021Q3 stx Stock Repurchased Period To Date Shares
StockRepurchasedPeriodToDateShares
426000000 shares
CY2021Q3 stx Stock Repurchased Period To Date Value
StockRepurchasedPeriodToDateValue
14467000000 usd
CY2022 us-gaap Stock Repurchased And Retired During Period Shares
StockRepurchasedAndRetiredDuringPeriodShares
21000000 shares
CY2022 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
1857000000 usd
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