2017 Q2 Form 8-K Financial Statement

#000001691817000064 Filed on October 31, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2016 Q2 2016 Q1
Revenue $2.115B $2.053B $1.543B
YoY Change 3.03% 14.18% 13.79%
Cost Of Revenue $940.2M $990.5M $827.6M
YoY Change -5.08% 10.77% 8.75%
Gross Profit $988.3M $881.3M $696.1M
YoY Change 12.14% 19.56% 16.48%
Gross Profit Margin 46.72% 42.93% 45.11%
Selling, General & Admin $427.2M $328.6M $278.7M
YoY Change 30.01% 6.07% 14.32%
% of Gross Profit 43.23% 37.29% 40.04%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $71.50M $60.00M $49.80M
YoY Change 19.17% 9.69% 14.22%
% of Gross Profit 7.23% 6.81% 7.15%
Operating Expenses $427.2M $328.6M $278.7M
YoY Change 30.01% 6.07% 14.32%
Operating Profit $561.1M $552.7M $417.4M
YoY Change 1.52% 29.35% 17.98%
Interest Expense $82.50M $85.00M -$63.10M
YoY Change -2.94% 9.25% -19.41%
% of Operating Profit 14.7% 15.38% -15.12%
Other Income/Expense, Net
YoY Change
Pretax Income $472.4M $468.8M $350.2M
YoY Change 0.77% 33.64% 27.9%
Income Tax $71.40M $149.7M $104.9M
% Of Pretax Income 15.11% 31.93% 29.95%
Net Earnings $398.5M $318.3M $243.4M
YoY Change 25.2% 33.4% 13.42%
Net Earnings / Revenue 18.84% 15.5% 15.77%
Basic Earnings Per Share
Diluted Earnings Per Share $1.983M $1.550M $1.186M
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q2 2016 Q2 2016 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $199.0M $167.0M $83.00M
YoY Change 19.16% 27.48% -24.55%
Cash & Equivalents $199.1M $167.3M $83.10M
Short-Term Investments
Other Short-Term Assets $393.0M $360.0M $103.3M
YoY Change 9.17% -2.17% -30.72%
Inventory $1.937B $1.919B $1.852B
Prepaid Expenses
Receivables $832.0M $773.0M $733.0M
Other Receivables $0.00 $0.00 $124.0M
Total Short-Term Assets $3.361B $3.219B $2.978B
YoY Change 4.41% 8.03% 2.29%
LONG-TERM ASSETS
Property, Plant & Equipment $4.187B $3.507B $3.333B
YoY Change 19.38% 27.9% 24.31%
Goodwill $7.972B $7.350B $7.139B
YoY Change 8.46% 18.55% 14.99%
Intangibles $3.290B $3.440B $3.404B
YoY Change -4.38% 8.64% 7.0%
Long-Term Investments $98.60M $82.40M $82.20M
YoY Change 19.66% 11.8% 11.84%
Other Assets $150.0M $113.7M $111.6M
YoY Change 31.93% -28.45% 0.18%
Total Long-Term Assets $15.60B $14.41B $13.99B
YoY Change 8.24% 17.94% 14.82%
TOTAL ASSETS
Total Short-Term Assets $3.361B $3.219B $2.978B
Total Long-Term Assets $15.60B $14.41B $13.99B
Total Assets $18.96B $17.63B $16.97B
YoY Change 7.54% 16.0% 12.4%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $558.8M $558.5M $429.3M
YoY Change 0.05% 93.19% 50.21%
Accrued Expenses $489.3M $461.0M $544.4M
YoY Change 6.14% -5.14% 17.58%
Deferred Revenue
YoY Change
Short-Term Debt $988.0M $30.00M $408.0M
YoY Change 3193.33% -70.3% 684.62%
Long-Term Debt Due $146.2M $1.588B $856.7M
YoY Change -90.79% 789.52% 441.87%
Total Short-Term Liabilities $2.182B $2.699B $2.272B
YoY Change -19.13% 140.89% 100.96%
LONG-TERM LIABILITIES
Long-Term Debt $8.077B $6.691B $6.816B
YoY Change 20.72% -4.94% -3.81%
Other Long-Term Liabilities $166.5M $159.9M $162.5M
YoY Change 4.13% -9.61% -7.72%
Total Long-Term Liabilities $8.244B $6.851B $6.979B
YoY Change 20.34% -5.05% -3.9%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.182B $2.699B $2.272B
Total Long-Term Liabilities $8.244B $6.851B $6.979B
Total Liabilities $11.56B $10.64B $10.27B
YoY Change 8.65% 15.73% 11.52%
SHAREHOLDERS EQUITY
Retained Earnings $7.612B $6.329B $6.091B
YoY Change 20.27% 16.0% 15.41%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $2.773B $1.662B $1.670B
YoY Change 66.89% 1.38% 1.32%
Treasury Stock Shares
Shareholders Equity $7.390B $6.848B $6.560B
YoY Change
Total Liabilities & Shareholders Equity $18.96B $17.63B $16.97B
YoY Change 7.54% 15.63% 12.4%

Cashflow Statement

Concept 2017 Q2 2016 Q2 2016 Q1
OPERATING ACTIVITIES
Net Income $398.5M $318.3M $243.4M
YoY Change 25.2% 33.4% 13.42%
Depreciation, Depletion And Amortization $71.50M $60.00M $49.80M
YoY Change 19.17% 9.69% 14.22%
Cash From Operating Activities $381.6M $345.9M $322.1M
YoY Change 10.32% 68.16% -2.66%
INVESTING ACTIVITIES
Capital Expenditures $217.1M $169.4M -$377.5M
YoY Change 28.16% 30.61% 111.96%
Acquisitions $0.00 $284.9M
YoY Change -100.0%
Other Investing Activities $4.200M -$400.0K -$1.002B
YoY Change -1150.0% -125.0% 260.37%
Cash From Investing Activities -$221.3M -$453.9M -$1.380B
YoY Change -51.24% 245.7% 202.43%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00 $1.000M
YoY Change -100.0%
Debt Paid & Issued, Net $1.913B $94.20M
YoY Change 1931.21% 18.64%
Cash From Financing Activities -141.6M 191.9M 653.8M
YoY Change -173.79% -459.36% 277.7%
NET CHANGE
Cash From Operating Activities 381.6M 345.9M 322.1M
Cash From Investing Activities -221.3M -453.9M -1.380B
Cash From Financing Activities -141.6M 191.9M 653.8M
Net Change In Cash 18.70M 83.90M -403.8M
YoY Change -77.71% 299.52% -944.77%
FREE CASH FLOW
Cash From Operating Activities $381.6M $345.9M $322.1M
Capital Expenditures $217.1M $169.4M -$377.5M
Free Cash Flow $164.5M $176.5M $699.6M
YoY Change -6.8% 132.24% 37.45%

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P2Y2M
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732700000 USD
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16100000 USD
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23100000 USD
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100400000 USD
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24700000 USD
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71200000 USD
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71600000 USD
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1600000 USD
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157.01
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1200000 USD
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11500000 USD
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13900000 USD
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54700000 USD
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5900000 USD
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3000000 USD
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700000 USD
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39500000 USD
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1100000 USD
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CY2017 us-gaap Advertising Cost Policy Expensed Advertising Cost
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">We expense advertising costs as incurred, shown or distributed.</font></div></div>
CY2017 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:11pt;"><font style="font-family:inherit;font-size:11pt;">ACCOUNTING GUIDANCE NOT YET ADOPTED:</font></div><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-style:italic;">Revenue recognition &#8211;</font></div><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">In May 2014, the FASB issued guidance regarding the recognition of revenue from contracts with customers. Under this guidance, an entity will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. A five step process will be utilized to recognize revenue, as follows:&#160;&#160;(i)&#160;&#160;identify the contract with a customer, (ii)&#160;&#160;identify the performance obligations in the contract, (iii)&#160;&#160;determine the transaction price, (iv)&#160;&#160;allocate the transaction price to the performance obligations in the contract and (v)&#160;&#160;recognize revenue when (or as) the entity satisfies a performance obligation. Additionally, this guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We are required to adopt this guidance for our annual and interim periods beginning March 1, 2018, utilizing one of two methods:&#160;&#160;retrospective restatement for each reporting period presented at time of adoption, or a modified retrospective approach with the cumulative effect of initially applying this guidance recognized at the date of initial application.</font></div><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">We intend to implement this guidance under the retrospective approach. Based on our preliminary review, we expect that the broad definition of variable consideration under this guidance will require us to estimate and record certain variable payments resulting from various sales incentives earlier than we currently record them. We do not expect this change to have a material impact on our consolidated financial statements. We are currently preparing to implement changes to our accounting policies, systems and controls to support the new revenue recognition and disclosure requirements.</font></div><div style="line-height:120%;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-style:italic;">Leases &#8211;</font></div><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">In February 2016, the FASB issued guidance for the accounting for leases. Under this guidance, a lessee will recognize assets and liabilities for most leases, but will recognize expense similar to current lease accounting guidance. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities. We are required to adopt this guidance for our annual and interim periods beginning March 1, 2019, using a modified retrospective approach. We are currently assessing the financial impact of this guidance on our consolidated financial statements.</font></div><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-style:italic;">Stock compensation &#8211;</font></div><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">In March 2016, the FASB issued guidance which amends, among other items, the accounting for income taxes related to share-based compensation and the related classification in the statement of cash flows. This guidance requires the recognition of excess tax benefits and deficiencies (resulting from an increase or decrease in the fair value of an award from grant date to the vesting or settlement date) in the provision for income taxes as a discrete item in the quarterly period in which they occur. Through February 28, 2017, these amounts were recognized in additional paid-in capital at the time of vesting or settlement. In addition, these amounts will be classified as an operating activity in the statement of cash flows instead of as a financing activity where they are currently recorded. This guidance will also impact our calculation of diluted earnings per share under the treasury stock method, as excess tax benefits and deficiencies resulting from share-based compensation are no longer included in the assumed proceeds calculation.</font></div><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">For the years ended </font><font style="font-family:inherit;font-size:11pt;color:#000000;text-decoration:none;">February 28, 2017</font><font style="font-family:inherit;font-size:11pt;">, </font><font style="font-family:inherit;font-size:11pt;color:#000000;text-decoration:none;">February 29, 2016</font><font style="font-family:inherit;font-size:11pt;">, and </font><font style="font-family:inherit;font-size:11pt;color:#000000;text-decoration:none;">February 28, 2015</font><font style="font-family:inherit;font-size:11pt;">, we recognized excess tax benefits of </font><font style="font-family:inherit;font-size:11pt;">$131.4 million</font><font style="font-family:inherit;font-size:11pt;">, </font><font style="font-family:inherit;font-size:11pt;">$203.4 million</font><font style="font-family:inherit;font-size:11pt;"> and </font><font style="font-family:inherit;font-size:11pt;">$78.0 million</font><font style="font-family:inherit;font-size:11pt;">, respectively, in additional paid-in capital. These amounts may not necessarily be indicative of future amounts that may be recognized subsequent to the adoption of the amended standard, as any excess tax benefits recognized will be dependent upon future stock prices, employee exercise behavior and applicable tax rates. We adopted this guidance on March 1, 2017, on a prospective basis.</font></div></div>
CY2017 us-gaap Guarantees Indemnifications And Warranties Policies
GuaranteesIndemnificationsAndWarrantiesPolicies
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-style:italic;">Indemnification liabilities:</font></div><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">We have indemnified respective parties against certain liabilities that may arise in connection with certain acquisitions and divestitures. Indemnification liabilities are recognized when probable and estimable and included in other liabilities (see Note </font><font style="font-family:inherit;font-size:11pt;">13</font><font style="font-family:inherit;font-size:11pt;">).</font></div></div>
CY2017 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-style:italic;">Management&#8217;s use of estimates:</font></div><div style="line-height:120%;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></div></div>

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