2016 Q3 Form 10-K Financial Statement

#000140316116000058 Filed on November 15, 2016

View on sec.gov

Income Statement

Concept 2016 Q3 2016 Q2 2015 Q3
Revenue $4.261B $3.630B $3.571B
YoY Change 19.32% 3.18% 10.59%
Cost Of Revenue $851.0M $632.0M $655.0M
YoY Change 29.92% -7.47% 4.97%
Gross Profit $3.410B $2.998B $2.916B
YoY Change 16.94% 5.75% 11.94%
Gross Profit Margin 80.03% 82.59% 81.66%
Selling, General & Admin $643.0M $573.0M $503.0M
YoY Change 27.83% 29.35% 3.07%
% of Gross Profit 18.86% 19.11% 17.25%
Research & Development $123.0M
YoY Change 5.13%
% of Gross Profit 4.1%
Depreciation & Amortization $141.0M $120.0M $119.0M
YoY Change 18.49% -7.69% 6.25%
% of Gross Profit 4.13% 4.0% 4.08%
Operating Expenses $784.0M $123.0M $622.0M
YoY Change 26.05% 5.13% 3.67%
Operating Profit $2.626B $428.0M $2.294B
YoY Change 14.47% -81.08% 14.41%
Interest Expense -$135.0M -$131.0M
YoY Change -1737.5%
% of Operating Profit -5.14% -30.61%
Other Income/Expense, Net $20.00M -$6.000M $0.00
YoY Change -93.62% -100.0%
Pretax Income $2.510B $422.0M $2.283B
YoY Change 9.94% -80.54% 47.29%
Income Tax $579.0M $10.00M $771.0M
% Of Pretax Income 23.07% 2.37% 33.77%
Net Earnings $1.931B $412.0M $1.512B
YoY Change 27.71% -75.72% 40.91%
Net Earnings / Revenue 45.32% 11.35% 42.34%
Basic Earnings Per Share
Diluted Earnings Per Share $792.0K $172.7K $619.2K
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2016 Q3 2016 Q2 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $8.938B $8.752B $6.015B
YoY Change 48.6% 85.35% 22.48%
Cash & Equivalents $5.619B $5.887B $3.518B
Short-Term Investments $3.319B $2.865B $2.497B
Other Short-Term Assets $122.0M $3.057B $63.00M
YoY Change 93.65% -18.48% -13.7%
Inventory
Prepaid Expenses $151.0M $137.0M
Receivables $1.041B $1.066B $847.0M
Other Receivables $1.699B $1.499B $408.0M
Total Short-Term Assets $14.31B $14.37B $10.02B
YoY Change 42.83% 42.77% 4.8%
LONG-TERM ASSETS
Property, Plant & Equipment $2.150B $2.136B $1.888B
YoY Change 13.88% 15.65% -0.21%
Goodwill $15.07B $3.268B $11.83B
YoY Change 27.41% -72.36% 0.61%
Intangibles $27.23B $27.08B $11.36B
YoY Change 139.71% 138.05% -0.44%
Long-Term Investments $3.977B $3.762B $3.384B
YoY Change 17.52% 14.0% 10.95%
Other Assets $893.0M $936.0M $778.0M
YoY Change 14.78% 1.74% -9.01%
Total Long-Term Assets $49.72B $49.49B $29.35B
YoY Change 69.43% 68.57% 1.17%
TOTAL ASSETS
Total Short-Term Assets $14.31B $14.37B $10.02B
Total Long-Term Assets $49.72B $49.49B $29.35B
Total Assets $64.04B $63.87B $39.37B
YoY Change 62.66% 61.98% 2.07%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $203.0M $115.0M $127.0M
YoY Change 59.84% 29.21% -13.61%
Accrued Expenses $1.128B $1.195B $849.0M
YoY Change 32.86% 48.26% 36.06%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00
YoY Change
Total Short-Term Liabilities $8.046B $7.783B $5.355B
YoY Change 50.25% 34.44% -10.84%
LONG-TERM LIABILITIES
Long-Term Debt $15.88B $15.88B $0.00
YoY Change
Other Long-Term Liabilities $1.162B $1.192B $897.0M
YoY Change 29.54% 35.61% -10.75%
Total Long-Term Liabilities $17.04B $1.192B $897.0M
YoY Change 1800.11% 35.61% -10.75%
TOTAL LIABILITIES
Total Short-Term Liabilities $8.046B $7.783B $5.355B
Total Long-Term Liabilities $17.04B $1.192B $897.0M
Total Liabilities $31.12B $31.04B $9.525B
YoY Change 226.75% 187.35% -14.62%
SHAREHOLDERS EQUITY
Retained Earnings $10.46B $10.33B $11.84B
YoY Change -11.66% -2.72% 29.7%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $170.0M $170.0M $0.00
YoY Change
Treasury Stock Shares
Shareholders Equity $32.91B $32.83B $29.84B
YoY Change
Total Liabilities & Shareholders Equity $64.04B $63.87B $39.37B
YoY Change 62.66% 61.98% 2.07%

Cashflow Statement

Concept 2016 Q3 2016 Q2 2015 Q3
OPERATING ACTIVITIES
Net Income $1.931B $412.0M $1.512B
YoY Change 27.71% -75.72% 40.91%
Depreciation, Depletion And Amortization $141.0M $120.0M $119.0M
YoY Change 18.49% -7.69% 6.25%
Cash From Operating Activities $2.452B $303.0M $1.734B
YoY Change 41.41% -85.65% -3.29%
INVESTING ACTIVITIES
Capital Expenditures -$141.0M -$132.0M -$138.0M
YoY Change 2.17% 78.38% -39.21%
Acquisitions
YoY Change
Other Investing Activities -$616.0M -$8.181B -$21.00M
YoY Change 2833.33% 1168.37% -92.28%
Cash From Investing Activities -$757.0M -$8.313B -$159.0M
YoY Change 376.1% 1056.19% -68.14%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.991B -1.984B -204.0M
YoY Change 875.98% 54.52% -85.22%
NET CHANGE
Cash From Operating Activities 2.452B 303.0M 1.734B
Cash From Investing Activities -757.0M -8.313B -159.0M
Cash From Financing Activities -1.991B -1.984B -204.0M
Net Change In Cash -296.0M -9.994B 1.371B
YoY Change -121.59% -9353.7% -1694.19%
FREE CASH FLOW
Cash From Operating Activities $2.452B $303.0M $1.734B
Capital Expenditures -$141.0M -$132.0M -$138.0M
Free Cash Flow $2.593B $435.0M $1.872B
YoY Change 38.51% -80.09% -7.33%

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CY2016Q3 us-gaap Loss Contingency Accrual At Carrying Value
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CY2015 us-gaap Loss Contingency Loss In Period
LossContingencyLossInPeriod
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2000000 USD
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1900000000 USD
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CY2015 us-gaap Loss On Contract Termination
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CY2016 us-gaap Loss On Contract Termination
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900000000 USD
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MarketingAndAdvertisingExpense
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CY2016 us-gaap Marketing And Advertising Expense
MarketingAndAdvertisingExpense
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200
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1
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CY2016Q3 us-gaap Operating Leases Future Minimum Payments Due In Three Years
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CY2016Q3 us-gaap Operating Leases Future Minimum Payments Due In Two Years
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103000000 USD
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483000000 USD
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68000000 USD
CY2016Q3 us-gaap Other Accrued Liabilities Noncurrent
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114000000 USD
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63000000 USD
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122000000 USD
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CY2016Q3 us-gaap Other Commitment Due In Next Twelve Months
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CY2016Q3 us-gaap Other Commitment Due In Third Year
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CY2016 us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax
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10000000 USD
CY2014 us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Tax
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4000000 USD
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1000000 USD
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21000000 USD
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3000000 USD
CY2014 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
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0 USD
CY2015 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
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CY2016 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
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1000000 USD
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46000000 USD
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103000000 USD
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9000000 USD
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65000000 USD
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13000000 USD
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OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodTax
51000000 USD
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51000000 USD
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18000000 USD
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CY2016 us-gaap Other Noncash Income Expense
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35000000 USD
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556000000 USD
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770000000 USD
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823000000 USD
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823000000 USD
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CY2015 us-gaap Payments Of Debt Issuance Costs
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CY2016 us-gaap Payments Of Debt Issuance Costs
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98000000 USD
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1006000000 USD
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1177000000 USD
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1350000000 USD
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2572000000 USD
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2850000000 USD
CY2016 us-gaap Payments To Acquire Available For Sale Securities
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28004000000 USD
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149000000 USD
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93000000 USD
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25000000 USD
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10000000 USD
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CY2015 us-gaap Proceeds From Issuance Of Debt
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CY2016 us-gaap Proceeds From Issuance Of Debt
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CY2015 us-gaap Proceeds From Sale And Maturity Of Other Investments
ProceedsFromSaleAndMaturityOfOtherInvestments
12000000 USD
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6000000 USD
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ProceedsFromSaleOfProductiveAssets
10000000 USD
CY2016 us-gaap Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
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91000000 USD
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82000000 USD
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95000000 USD
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336000000 USD
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389000000 USD
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5438000000 USD
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CY2016 us-gaap Profit Loss
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2150000000 USD
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0 USD
CY2015 us-gaap Related Party Transaction Amounts Of Transaction
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0 USD
CY2016 us-gaap Related Party Transaction Amounts Of Transaction
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CY2016 us-gaap Revenues
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0.15
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126000000 USD
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132000000 USD
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142000000 USD
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0.008
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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0.008
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.007
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0.252
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0.220
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0.217
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0.013
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ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.015
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.015
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24.87
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187000000 USD
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134000000 USD
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103000000 USD
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463378 shares
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11.03
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12.04
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15.01
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393000000 USD
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CY2016Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
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CY2015Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
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28.07
CY2016Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
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389000000 USD
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37.35
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CY2016 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
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21.76
CY2016 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
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79.98
CY2016 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Expiration Period
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P10Y
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P4Y9M18D
CY2015 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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P4Y6M18D
CY2016 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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P4Y4M6D
CY2016Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
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P3Y9M15D
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SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P5Y2M19D
CY2016 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageRemainingContractualTerm1
P5Y1M10D
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CY2016Q3 us-gaap Stock Repurchased And Retired During Period Shares
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CY2016Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2015Q3 us-gaap Trading Securities
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CY2016Q3 us-gaap Trading Securities
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CY2016Q3 us-gaap Treasury Stock Value
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CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
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CY2015Q3 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
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CY2016Q3 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
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13.952
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CY2016Q3 v Business Combination Additional Cash Consideration Payable Noncurrent
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CY2016 v Business Combination Deferred Purchase Consideration
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CY2016Q2 v Business Combination Recognized Identifiable Assets Acquiredand Liabilities Assumed Tangible Assetsand Liabilities
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CY2015Q3 v Cash Collateral Received
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CY2016Q3 v Client Incentives Assets Noncurrent
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CY2012Q4 v Consecutive Months Of Distribution To Class Merchants
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CY2015Q3 v Covered Settlement Exposure
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CY2016Q3 v Covered Settlement Exposure
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CY2015Q3 v Customer Collateral Assets
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CY2016Q3 v Customer Collateral Liabilities
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CY2016 v Data Processing Fees
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CY2016 v Decreaseindeferredtaxassetsreflectingthecurrenttaxdeductionrelatedtopaymentsmadeinconnectionwiththecoveredlitigation
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203000000 USD
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195000000 USD
CY2016 v Defined Benefit Plan Postretirement Benefit Termination Age
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CY2012Q4 v Distributionto Class Merchants Periodper Terms
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CY2014 v Effective Income Tax Rate Reconciliation Deferred Tax Liability Remeasurement Percent
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CY2015 v Effective Income Tax Rate Reconciliation Deferred Tax Liability Remeasurement Percent
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0.00
CY2016 v Effective Income Tax Rate Reconciliation Deferred Tax Liability Remeasurement Percent
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CY2014 v Effective Income Tax Rate Reconciliation Revaluationof Foreign Put Option
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CY2015 v Effective Income Tax Rate Reconciliation Revaluationof Foreign Put Option
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CY2016 v Effective Income Tax Rate Reconciliation Revaluationof Foreign Put Option
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CY2015 v Effective Income Tax Rate Reconciliation Revaluationof Foreign Put Option Percent
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CY2016 v Effective Income Tax Rate Reconciliation Revaluationof Foreign Put Option Percent
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CY2015Q3 v Employee Related Liabilities Noncurrent
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CY2016Q3 v Employee Related Liabilities Noncurrent
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CY2015Q3 v Estimated Maximum Settlement Exposure
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CY2016Q3 v Estimated Maximum Settlement Exposure
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CY2015Q3 v Estimated Probability Weighted Value Of Guarantee
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CY2016Q3 v Estimated Probability Weighted Value Of Guarantee
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CY2016 v Expected Reduction Of Volume And Support Incentives
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CY2014 v Fair Value Adjustmentfor Europe Put Option
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CY2015 v Fair Value Adjustmentfor Europe Put Option
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CY2016 v Fair Value Adjustmentfor Europe Put Option
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CY2014 v Funding Of Litigation Escrow Account Retrospective Responsibility Plan
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CY2016Q3 v Future Amortization Expense
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CY2016Q3 v Future Amortization Expense Year Five And Thereafter
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CY2015Q3 v Guarantees Collateral
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CY2016Q3 v Guarantees Collateral
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CY2014 v Income Loss From Continuing Operations Before Income Taxes And Minority Interest
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CY2015 v Income Loss From Continuing Operations Before Income Taxes And Minority Interest
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CY2016 v Income Loss From Continuing Operations Before Income Taxes And Minority Interest
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CY2014 v Income Tax Reconciliation Deductions Qualified Production Activities Prior Years
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CY2016 v Income Tax Reconciliation Deductions Qualified Production Activities Prior Years
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CY2014 v Increase Decrease In Accrued Litigation
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CY2014 v Increase Decrease In Settlement Payable
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CY2015 v Increase Decrease In Settlement Payable
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CY2014 v Increase Decrease In Settlement Receivable
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CY2014 v Increase Decrease In Volume And Support Incentives
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2395000000 USD
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CY2016 v Increase Decrease In Volume And Support Incentives
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CY2015 v Increase Decrease Liabilities Relatedto Investment Contracts Fair Value Disclosure
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110000000 USD
CY2016 v Increase Decrease Liabilities Relatedto Investment Contracts Fair Value Disclosure
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255000000 USD
CY2014 v International Transaction Revenues
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3560000000 USD
CY2015 v International Transaction Revenues
InternationalTransactionRevenues
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CY2015Q3 v Letters Of Credit Collateral
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CY2016Q3 v Letters Of Credit Collateral
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CY2014 v Liabilities Assumed In Noncash Operating Investing Or Financing Activities
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CY2015 v Liabilities Assumed In Noncash Operating Investing Or Financing Activities
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CY2016 v Liabilities Assumed In Noncash Operating Investing Or Financing Activities
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42000000 USD
CY2016Q3 v Minimum Ownership Interestin Investeefor Related Party Status Percent
MinimumOwnershipInterestinInvesteeforRelatedPartyStatusPercent
0.10
CY2016Q3 v Minimum Ownershipof Company Stockfor Related Party Status Percent
MinimumOwnershipofCompanyStockforRelatedPartyStatusPercent
0.1
CY2016Q3 v Numberof Entities Owning More Than10of Company Stock
NumberofEntitiesOwningMoreThan10ofCompanyStock
0 entity
CY2016 v Numberof Rolling Monthsof Average Chargebacks Volume Includedin Settlement Risk Exposure
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4 month
CY2014 v Other Than Temporary Impairment Losses Realized
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3000000 USD
CY2015 v Other Than Temporary Impairment Losses Realized
OtherThanTemporaryImpairmentLossesRealized
5000000 USD
CY2016 v Other Than Temporary Impairment Losses Realized
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4000000 USD
CY2014 v Paymentsfor Proceedsfrom Litigation Escrow Account Retrospective Responsibility Plan
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999000000 USD
CY2015 v Paymentsfor Proceedsfrom Litigation Escrow Account Retrospective Responsibility Plan
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CY2016 v Paymentsfor Proceedsfrom Litigation Escrow Account Retrospective Responsibility Plan
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CY2015Q3 v Pledged Securities At Market Value Collateral
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154000000 USD
CY2016Q3 v Pledged Securities At Market Value Collateral
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170000000 USD
CY2016Q3 v Preferred Stock Availableto Recover Covered Losses Value
PreferredStockAvailabletoRecoverCoveredLossesValue
5717000000 USD
CY2016Q3 v Preferred Stock Availableto Recover Covered Losses Value Asconverted
PreferredStockAvailabletoRecoverCoveredLossesValueAsconverted
6504000000 USD
CY2016Q3 v Preferred Stock Availableto Recover Covered Losses Value Asconverted Net
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6470000000 USD
CY2016Q3 v Preferred Stock Availableto Recover Covered Losses Value Net
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5683000000 USD
CY2016Q2 v Preferred Stock Discountfor Illiquidity Percent
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0.06
CY2014 v Proceeds From Settled Sharebased Compensationfor Taxes
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86000000 USD
CY2015 v Proceeds From Settled Sharebased Compensationfor Taxes
ProceedsFromSettledSharebasedCompensationforTaxes
108000000 USD
CY2016 v Proceeds From Settled Sharebased Compensationfor Taxes
ProceedsFromSettledSharebasedCompensationforTaxes
92000000 USD
CY2016 v Revaluationof Put Option Amount
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255000000 USD
CY2014Q3 v Rightto Recoverfor Covered Losses
RighttoRecoverforCoveredLosses
0 USD
CY2015Q3 v Rightto Recoverfor Covered Losses
RighttoRecoverforCoveredLosses
0 USD
CY2016Q3 v Rightto Recoverfor Covered Losses
RighttoRecoverforCoveredLosses
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CY2016Q2 v Rightto Recoverfor Covered Losses
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25000000 USD
CY2014 v Service Fees
ServiceFees
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CY2015 v Service Fees
ServiceFees
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CY2016 v Service Fees
ServiceFees
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CY2015Q3 v Settlement Payable
SettlementPayable
780000000 USD
CY2016Q3 v Settlement Payable
SettlementPayable
2084000000 USD
CY2015Q3 v Settlement Receivable
SettlementReceivable
408000000 USD
CY2016Q3 v Settlement Receivable
SettlementReceivable
1467000000 USD
CY2014 v Stock Issued During Period Value Employee Stock Purchase Plansand Stock Options Exercised
StockIssuedDuringPeriodValueEmployeeStockPurchasePlansandStockOptionsExercised
91000000 USD
CY2015 v Stock Issued During Period Value Employee Stock Purchase Plansand Stock Options Exercised
StockIssuedDuringPeriodValueEmployeeStockPurchasePlansandStockOptionsExercised
82000000 USD
CY2016 v Stock Issued During Period Value Employee Stock Purchase Plansand Stock Options Exercised
StockIssuedDuringPeriodValueEmployeeStockPurchasePlansandStockOptionsExercised
95000000 USD
CY2015Q3 v Total Collateral
TotalCollateral
3326000000 USD
CY2016Q3 v Total Collateral
TotalCollateral
4194000000 USD
CY2014 v Total Deferred Income Tax Expense Benefit
TotalDeferredIncomeTaxExpenseBenefit
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CY2015 v Total Deferred Income Tax Expense Benefit
TotalDeferredIncomeTaxExpenseBenefit
208000000 USD
CY2016 v Total Deferred Income Tax Expense Benefit
TotalDeferredIncomeTaxExpenseBenefit
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CY2016 v Ve Covered Loss Maximum Amountof Lossto Allow Adjustmentof Conversion Rateduring Sixmonth Period
VECoveredLossMaximumAmountofLosstoAllowAdjustmentofConversionRateduringSixmonthPeriod
20000000 USD
CY2016 v Ve Territory Covered Losses Incurred
VETerritoryCoveredLossesIncurred
34000000 USD
CY2014 v Ve Territory Covered Losses Incurred Post Acquisition
VETerritoryCoveredLossesIncurredPostAcquisition
0 USD
CY2015 v Ve Territory Covered Losses Incurred Post Acquisition
VETerritoryCoveredLossesIncurredPostAcquisition
0 USD
CY2016 v Ve Territory Covered Losses Incurred Post Acquisition
VETerritoryCoveredLossesIncurredPostAcquisition
-9000000 USD
CY2015Q3 v V Deferred Tax Assets Federal Benefit Of Foreign Taxes
V_DeferredTaxAssetsFederalBenefitOfForeignTaxes
0 USD
CY2016Q3 v V Deferred Tax Assets Federal Benefit Of Foreign Taxes
V_DeferredTaxAssetsFederalBenefitOfForeignTaxes
1214000000 USD
CY2014 v Volume And Support Incentives
VolumeAndSupportIncentives
2592000000 USD
CY2015 v Volume And Support Incentives
VolumeAndSupportIncentives
2861000000 USD
CY2016 v Volume And Support Incentives
VolumeAndSupportIncentives
3409000000 USD
CY2016 us-gaap Guarantees Indemnifications And Warranties Policies
GuaranteesIndemnificationsAndWarrantiesPolicies
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Guarantees and indemnifications</font><font style="font-family:Arial;font-size:10pt;">. The Company recognizes an obligation at inception for guarantees and indemnifications that qualify for recognition, regardless of the probability of occurrence. The Company indemnifies its financial institution clients for settlement losses suffered due to the failure of any other client to fund its settlement obligations in accordance with the Visa Rules. The estimated fair value of the liability for settlement indemnification is included in accrued liabilities on the consolidated balance sheets and is described in </font><font style="font-family:Arial;font-size:10pt;color:#000000;font-style:italic;text-decoration:none;">Note 11&#8212;Settlement Guarantee Management</font><font style="font-family:Arial;font-size:10pt;">. </font></div></div>
CY2016 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Use of estimates</font><font style="font-family:Arial;font-size:10pt;">. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Future actual results could differ materially from these estimates. The use of estimates in specific accounting policies is described further below as appropriate.</font></div></div>

Files In Submission

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