2018 Q2 Form 10-K Financial Statement

#000156459019003839 Filed on February 22, 2019

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q4 2017 Q3
Revenue $4.017B $3.750B $4.116B
YoY Change 8.77% 9.84% 12.0%
Cost Of Revenue $1.398B $1.310B $1.460B
YoY Change 5.99% 2.58% 4.96%
Gross Profit $2.619B $2.440B $2.656B
YoY Change 10.32% 14.18% 16.29%
Gross Profit Margin 65.2% 65.07% 64.53%
Selling, General & Admin $441.0M $409.0M $412.0M
YoY Change 1.61% 0.99% -6.79%
% of Gross Profit 16.84% 16.76% 15.51%
Research & Development $384.0M $386.0M $375.0M
YoY Change 1.59% 13.53% 6.23%
% of Gross Profit 14.66% 15.82% 14.12%
Depreciation & Amortization $233.0M $224.0M $225.0M
YoY Change 3.56% -1.32% -5.06%
% of Gross Profit 8.9% 9.18% 8.47%
Operating Expenses $825.0M $874.0M $867.0M
YoY Change -7.41% 5.94% -0.91%
Operating Profit $1.712B $1.563B $1.788B
YoY Change 15.68% 17.34% 26.99%
Interest Expense -$30.00M -$21.00M -$19.00M
YoY Change 50.0% 10.53% 5.56%
% of Operating Profit -1.75% -1.34% -1.06%
Other Income/Expense, Net $24.00M $8.000M $20.00M
YoY Change -7.69% -95.65% -322.22%
Pretax Income $1.706B $1.550B $1.789B
YoY Change 14.8% 3.54% 29.54%
Income Tax $301.0M $1.147B $504.0M
% Of Pretax Income 17.64% 74.0% 28.17%
Net Earnings $1.405B $344.0M $1.285B
YoY Change 33.05% -67.14% 26.23%
Net Earnings / Revenue 34.98% 9.17% 31.22%
Basic Earnings Per Share $1.43 $0.35 $1.29
Diluted Earnings Per Share $1.40 $0.34 $1.26
COMMON SHARES
Basic Shares Outstanding 977.0M
Diluted Shares Outstanding 997.0M

Balance Sheet

Concept 2018 Q2 2017 Q4 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $5.130B $4.469B $3.444B
YoY Change 71.92% 28.05% 9.79%
Cash & Equivalents $2.919B $1.656B $1.296B
Short-Term Investments $2.211B $2.813B $2.148B
Other Short-Term Assets $821.0M $1.030B $1.063B
YoY Change -26.1% 13.19% 34.73%
Inventory $2.090B $1.957B $1.908B
Prepaid Expenses
Receivables $1.551B $1.278B $1.576B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $9.592B $8.734B $7.991B
YoY Change 27.71% 17.12% 11.28%
LONG-TERM ASSETS
Property, Plant & Equipment $2.855B $2.664B $2.567B
YoY Change 13.56% 6.05% 0.86%
Goodwill $4.362B $4.362B
YoY Change 0.0%
Intangibles
YoY Change
Long-Term Investments $295.0M $294.0M $284.0M
YoY Change 8.06% 13.08% 21.89%
Other Assets $149.0M $86.00M $589.0M
YoY Change -73.35% 8.86% 618.29%
Total Long-Term Assets $8.935B $8.908B $8.938B
YoY Change 0.09% -0.74% -1.07%
TOTAL ASSETS
Total Short-Term Assets $9.592B $8.734B $7.991B
Total Long-Term Assets $8.935B $8.908B $8.938B
Total Assets $18.53B $17.64B $16.93B
YoY Change 12.71% 7.37% 4.4%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $492.0M $466.0M $430.0M
YoY Change 9.33% 17.68% 0.47%
Accrued Expenses $854.0M $1.164B $1.052B
YoY Change 1.43% 0.87% 1.15%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $500.0M $499.0M
YoY Change -100.0% -20.76% -21.29%
Total Short-Term Liabilities $1.466B $2.258B $2.055B
YoY Change -21.9% -0.27% -5.3%
LONG-TERM LIABILITIES
Long-Term Debt $5.066B $3.577B $3.084B
YoY Change 64.27% 20.11% 3.59%
Other Long-Term Liabilities $1.229B $1.303B $764.0M
YoY Change 66.98% 135.2% 2.14%
Total Long-Term Liabilities $6.295B $4.880B $3.848B
YoY Change 64.79% 38.17% 29.26%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.466B $2.258B $2.055B
Total Long-Term Liabilities $6.295B $4.880B $3.848B
Total Liabilities $7.893B $7.305B $5.941B
YoY Change 37.75% 22.61% 0.19%
SHAREHOLDERS EQUITY
Retained Earnings $36.41B $34.66B
YoY Change 4.7%
Common Stock $3.608B $3.517B
YoY Change 2.99%
Preferred Stock
YoY Change
Treasury Stock (at cost) $29.02B $27.46B
YoY Change 7.58%
Treasury Stock Shares $766.5M 757.7M shares
Shareholders Equity $10.63B $10.34B $10.99B
YoY Change
Total Liabilities & Shareholders Equity $18.53B $17.64B $16.93B
YoY Change 12.71% 7.37% 4.4%

Cashflow Statement

Concept 2018 Q2 2017 Q4 2017 Q3
OPERATING ACTIVITIES
Net Income $1.405B $344.0M $1.285B
YoY Change 33.05% -67.14% 26.23%
Depreciation, Depletion And Amortization $233.0M $224.0M $225.0M
YoY Change 3.56% -1.32% -5.06%
Cash From Operating Activities $1.826B $1.929B $1.722B
YoY Change 99.13% 39.08% 17.54%
INVESTING ACTIVITIES
Capital Expenditures -$249.0M -$231.0M -$186.0M
YoY Change 64.9% 110.0% 33.81%
Acquisitions
YoY Change
Other Investing Activities $168.0M -$667.0M -$302.0M
YoY Change 17.48% 16.0% -34.91%
Cash From Investing Activities -$81.00M -$898.0M -$488.0M
YoY Change 912.5% 31.09% -19.07%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $500.0M
YoY Change 33.33%
Cash From Financing Activities -543.0M -671.0M -1.078B
YoY Change -35.51% -26.83% 48.08%
NET CHANGE
Cash From Operating Activities 1.826B 1.929B 1.722B
Cash From Investing Activities -81.00M -898.0M -488.0M
Cash From Financing Activities -543.0M -671.0M -1.078B
Net Change In Cash 1.202B 360.0M 156.0M
YoY Change 1694.03% -267.44% 16.42%
FREE CASH FLOW
Cash From Operating Activities $1.826B $1.929B $1.722B
Capital Expenditures -$249.0M -$231.0M -$186.0M
Free Cash Flow $2.075B $2.160B $1.908B
YoY Change 94.29% 44.29% 18.95%

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<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Indemnification guarantees</p> <p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We routinely sell products with an intellectual property indemnification included in the terms of sale. Historically, we have had only minimal, infrequent losses associated with these indemnities. Consequently, we cannot reasonably estimate any future liabilities that may result.</p> <p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Warranty costs/product liabilities</p> <p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We accrue for known product-related claims if a loss is probable and can be reasonably estimated. During the periods presented, there have been no material accruals or payments regarding product warranty or product liability. Historically, we have experienced a low rate of payments on product claims. Although we cannot predict the likelihood or amount of any future claims, we do not believe they will have a material adverse effect on our financial condition, results of operations or liquidity. Our stated warranties for semiconductor products<font style="color:#000000;"> obligate us to repair, replace or credit the purchase price of a covered product back to the buyer. </font>Product claim consideration may exceed the price of our products.</p>
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Black-Scholes-Merton option-pricing model
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0.23
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0.24
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0.25
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P7Y2M12D
CY2017 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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P7Y2M12D
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P7Y3M18D
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0.0257
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0.0236
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0.0172
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0.0225
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0.0252
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0.0287
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