2017 Q4 Form 10-K Financial Statement

#000160171219000053 Filed on February 15, 2019

View on sec.gov

Income Statement

Concept 2017 Q4 2017 Q3 2017 Q2
Revenue
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $67.00M $69.00M $59.00M
YoY Change 21.82% 23.21% 9.26%
% of Gross Profit
Operating Expenses
YoY Change
Operating Profit
YoY Change
Interest Expense $375.0M $357.0M $333.0M
YoY Change 17.55% 13.33% 9.9%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income $875.0M $879.0M $788.0M
YoY Change -3.63% -8.72% 2.2%
Income Tax $490.0M $324.0M $292.0M
% Of Pretax Income 56.0% 36.86% 37.06%
Net Earnings $385.0M $555.0M $496.0M
YoY Change -33.16% -8.11% 1.43%
Net Earnings / Revenue
Basic Earnings Per Share $0.49 $0.70 $0.62
Diluted Earnings Per Share $0.49 $0.70 $0.61
COMMON SHARES
Basic Shares Outstanding 782.6M shares 787.3M shares 804.0M shares
Diluted Shares Outstanding 790.9M shares 807.4M shares

Balance Sheet

Concept 2017 Q4 2017 Q3 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $11.60B $13.92B $12.02B
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill $991.0M $991.0M $991.0M
YoY Change 4.43% 4.43% 4.43%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $95.81B $92.55B $91.14B
YoY Change 6.21% 6.18% 10.63%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses $4.287B $3.793B $3.214B
YoY Change 12.55% 18.68% 9.06%
Deferred Revenue
YoY Change
Short-Term Debt
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $4.287B $3.793B $3.214B
YoY Change 12.55% 18.68% 9.06%
LONG-TERM LIABILITIES
Long-Term Debt $20.80B $19.90B $20.71B
YoY Change 3.24% -1.33% 7.33%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $20.80B $19.90B $20.71B
YoY Change 3.24% -1.33% 7.33%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.287B $3.793B $3.214B
Total Long-Term Liabilities $20.80B $19.90B $20.71B
Total Liabilities $81.57B $78.15B $76.81B
YoY Change 7.32% 6.79% 11.85%
SHAREHOLDERS EQUITY
Retained Earnings $6.809B $6.543B $6.109B
YoY Change 27.75% 34.6% 39.99%
Common Stock $1.000M $1.000M $1.000M
YoY Change 0.0% 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.957B $1.531B $1.144B
YoY Change 312.0% 543.28%
Treasury Stock Shares 63.45M shares 51.40M shares 38.66M shares
Shareholders Equity $14.23B $14.40B $14.33B
YoY Change
Total Liabilities & Shareholders Equity $95.81B $92.55B $91.14B
YoY Change 6.21% 6.18% 10.63%

Cashflow Statement

Concept 2017 Q4 2017 Q3 2017 Q2
OPERATING ACTIVITIES
Net Income $385.0M $555.0M $496.0M
YoY Change -33.16% -8.11% 1.43%
Depreciation, Depletion And Amortization $67.00M $69.00M $59.00M
YoY Change 21.82% 23.21% 9.26%
Cash From Operating Activities $2.469B $2.902B $1.724B
YoY Change 43.21% 59.89% 17.12%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities -$7.120B -$1.982B -$1.820B
YoY Change -13.31% -49.39% -25.29%
Cash From Investing Activities -$7.120B -$1.982B -$1.820B
YoY Change -13.31% -49.39% -25.29%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.380B 281.0M 1.284B
YoY Change 9.27% -92.8% 411.55%
NET CHANGE
Cash From Operating Activities 2.469B 2.902B 1.724B
Cash From Investing Activities -7.120B -1.982B -1.820B
Cash From Financing Activities 2.380B 281.0M 1.284B
Net Change In Cash -2.271B 1.201B 1.188B
YoY Change -47.32% -33.31% -266.62%
FREE CASH FLOW
Cash From Operating Activities $2.469B $2.902B $1.724B
Capital Expenditures
Free Cash Flow
YoY Change

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1380000000 USD
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85000000 USD
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255000000 USD
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251000000 USD
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16000000 USD
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173000000 USD
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164000000 USD
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2300000 shares
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WeightedAverageNumberDilutedSharesOutstandingAdjustment
4100000 shares
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795600000 shares
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CY2018 us-gaap Revenue Recognition Interest
RevenueRecognitionInterest
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Interest and Fees on Loans</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:16px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We use the effective interest method to recognize income on loans. Interest on loans is comprised largely of interest and late fees on credit card and other loans. Interest income is recognized based upon the amount of loans outstanding and their contractual interest rate. Late fees are recognized when billable to the customer. We continue to accrue interest and fees on credit cards until the accounts are charged-off in the period the account becomes </font><font style="font-family:Arial;font-size:10pt;">180</font><font style="font-family:Arial;font-size:10pt;"> days past due. For non-credit card loans, we stop accruing interest and fees when the account becomes </font><font style="font-family:Arial;font-size:10pt;">90</font><font style="font-family:Arial;font-size:10pt;"> days past due. Previously recognized interest income that was accrued but not collected from the customer is reversed. Although we stop accruing interest in advance of payments, we recognize interest income as cash is collected when appropriate, provided the amount does not exceed that which would have been earned at the historical effective interest rate; otherwise, payments received are applied to reduce the principal balance of the loan. </font></div><div style="line-height:120%;padding-bottom:16px;padding-top:16px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We resume accruing interest on non-credit card loans when the customer&#8217;s account is less than </font><font style="font-family:Arial;font-size:10pt;">90</font><font style="font-family:Arial;font-size:10pt;"> days past due and collection of such amounts is probable. Interest accruals on modified loans that are not considered to be TDRs may return to current status (re-aged) only after receipt of at least </font><font style="font-family:Arial;font-size:10pt;">three</font><font style="font-family:Arial;font-size:10pt;"> consecutive minimum monthly payments subject to a re-aging limitation of once a year, or twice in a </font><font style="font-family:Arial;font-size:10pt;">five</font><font style="font-family:Arial;font-size:10pt;">-year period.</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:16px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Direct loan origination costs on credit card loans are deferred and amortized on a straight-line basis over a one-year period, or the life of the loan for other loan receivables, and are included in interest and fees on loans in our Consolidated Statements of Earnings. See Note 4. </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Loan Receivables and Allowance for Loan Losses</font><font style="font-family:Arial;font-size:10pt;"> for further detail. </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Other loan fees including miscellaneous fees charged to borrowers are recognized net of waivers and charge-offs when the related transaction or service is provided, and are included in other income in our Consolidated Statements of Earnings.</font></div></div>
CY2018 us-gaap Revenue Recognition Loyalty Programs
RevenueRecognitionLoyaltyPrograms
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Loyalty Programs</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:16px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Our loyalty programs are designed to generate increased purchase volume per customer while reinforcing the value of our credit cards and strengthening cardholder loyalty. These programs typically provide cardholders with statement credit or cash back rewards. Other programs include rewards points, which are redeemable for a variety of products or awards, or merchandise discounts that are earned by achieving a pre-set spending level on their private label credit card, Dual Card or general purpose co-branded credit card. These programs are primarily in our Retail Card platform. We establish a rewards liability based on points and merchandise discounts earned that are ultimately expected to be redeemed and the average cost per point at redemption. The rewards liability is included in accrued expenses and other liabilities in our Consolidated Statements of Financial Position. Cash rebates are earned based on a tiered percentage of purchase volume. As points and discounts are redeemed or cash rebates are issued, the rewards liability is relieved. The estimated cost of loyalty programs is classified as a reduction to other income in our Consolidated Statements of Earnings.</font></div></div>

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