2014 Q2 Form 10-Q Financial Statement

#000143710714000048 Filed on July 31, 2014

View on sec.gov

Income Statement

Concept 2014 Q2 2013 Q2
Revenue $1.610B $1.467B
YoY Change 9.75% 30.28%
Cost Of Revenue $515.0M $437.0M
YoY Change 17.85% 46.64%
Gross Profit $1.095B $1.030B
YoY Change 6.31% 24.4%
Gross Profit Margin 68.01% 70.21%
Selling, General & Admin $406.0M $394.0M
YoY Change 3.05% 28.34%
% of Gross Profit 37.08% 38.25%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $430.0M $389.0M
YoY Change 10.54% 58.78%
% of Gross Profit 39.27% 37.77%
Operating Expenses $406.0M $394.0M
YoY Change 3.05% 28.34%
Operating Profit $640.0M $549.0M
YoY Change 16.58% 12.5%
Interest Expense -$47.00M -$28.00M
YoY Change 67.86% -58.21%
% of Operating Profit -7.34% -5.1%
Other Income/Expense, Net $27.00M $19.00M
YoY Change 42.11%
Pretax Income $592.0M $481.0M
YoY Change 23.08% 14.25%
Income Tax $208.0M $181.0M
% Of Pretax Income 35.14% 37.63%
Net Earnings $379.0M $300.0M
YoY Change 26.33% 2.39%
Net Earnings / Revenue 23.54% 20.45%
Basic Earnings Per Share $0.55 $0.41
Diluted Earnings Per Share $0.54 $0.41
COMMON SHARES
Basic Shares Outstanding 343.0M shares 359.0M shares
Diluted Shares Outstanding 346.0M shares 363.0M shares

Balance Sheet

Concept 2014 Q2 2013 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $372.0M $375.0M
YoY Change -0.8% -77.92%
Cash & Equivalents $372.0M $375.0M
Short-Term Investments
Other Short-Term Assets $674.0M $558.0M
YoY Change 20.79% 54.57%
Inventory
Prepaid Expenses
Receivables $1.525B $1.332B
Other Receivables $0.00 $0.00
Total Short-Term Assets $2.571B $2.265B
YoY Change 13.51% -29.53%
LONG-TERM ASSETS
Property, Plant & Equipment $538.0M $460.0M
YoY Change 16.96% 25.0%
Goodwill $8.126B $7.278B
YoY Change 11.65% 15.3%
Intangibles $1.924B $1.618B
YoY Change 18.91% 188.93%
Long-Term Investments $828.0M $1.105B
YoY Change -25.07% 35.25%
Other Assets $183.0M $188.0M
YoY Change -2.66% 39.26%
Total Long-Term Assets $13.53B $12.42B
YoY Change 8.95% 29.45%
TOTAL ASSETS
Total Short-Term Assets $2.571B $2.265B
Total Long-Term Assets $13.53B $12.42B
Total Assets $16.11B $14.69B
YoY Change 9.65% 14.65%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $226.0M $116.0M
YoY Change 94.83% 107.14%
Accrued Expenses $945.0M $741.0M
YoY Change 27.53% 27.1%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $1.029B $23.00M
YoY Change 4373.91% 15.0%
Total Short-Term Liabilities $2.360B $1.002B
YoY Change 135.53% 32.36%
LONG-TERM LIABILITIES
Long-Term Debt $6.045B $6.455B
YoY Change -6.35% 23.99%
Other Long-Term Liabilities $299.0M $270.0M
YoY Change 10.74% 143.24%
Total Long-Term Liabilities $299.0M $270.0M
YoY Change 10.74% 143.24%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.360B $1.002B
Total Long-Term Liabilities $299.0M $270.0M
Total Liabilities $9.473B $8.383B
YoY Change 13.0% 32.29%
SHAREHOLDERS EQUITY
Retained Earnings $3.499B $2.349B
YoY Change 48.96% 42.71%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $4.300B $2.747B
YoY Change 56.53% 53.12%
Treasury Stock Shares
Shareholders Equity $6.031B $6.269B
YoY Change
Total Liabilities & Shareholders Equity $16.11B $14.69B
YoY Change 9.65% 14.65%

Cashflow Statement

Concept 2014 Q2 2013 Q2
OPERATING ACTIVITIES
Net Income $379.0M $300.0M
YoY Change 26.33% 2.39%
Depreciation, Depletion And Amortization $430.0M $389.0M
YoY Change 10.54% 58.78%
Cash From Operating Activities $232.0M $339.0M
YoY Change -31.56% 140.43%
INVESTING ACTIVITIES
Capital Expenditures $30.00M $28.00M
YoY Change 7.14% 833.33%
Acquisitions
YoY Change
Other Investing Activities -$245.0M -$1.786B
YoY Change -86.28% 2488.41%
Cash From Investing Activities -$275.0M -$1.814B
YoY Change -84.84% 2419.44%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $265.0M
YoY Change -34.41%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -341.0M -502.0M
YoY Change -32.07% -185.23%
NET CHANGE
Cash From Operating Activities 232.0M 339.0M
Cash From Investing Activities -275.0M -1.814B
Cash From Financing Activities -341.0M -502.0M
Net Change In Cash -384.0M -1.977B
YoY Change -80.58% -400.46%
FREE CASH FLOW
Cash From Operating Activities $232.0M $339.0M
Capital Expenditures $30.00M $28.00M
Free Cash Flow $202.0M $311.0M
YoY Change -35.05% 125.36%

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us-gaap Depreciation Depletion And Amortization
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us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Reporting Discontinued Operations</font></div><div style="line-height:120%;padding-top:6px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April&#160;2014, the FASB issued guidance that&#160;changes the criteria for reporting a discontinued operation. Under the new pronouncement, disposal of a component of an entity representing a strategic shift with major effect on its operations and financial results is a discontinued operation.&#160;The Company is required to adopt&#160;the guidance&#160;prospectively for all disposals or components of its business classified as held for sale during fiscal periods beginning after December&#160;15, 2014. The Company will assess future dispositions under the new guidance.</font></div><div style="line-height:120%;padding-top:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Revenue from Contracts with Customers</font></div><div style="line-height:120%;padding-top:6px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the FASB issued an accounting pronouncement related to revenue recognition, which applies a single, comprehensive revenue recognition model for all contracts with customers. This standard contains principles with respect to the measurement of revenue and timing of recognition. The Company will recognize revenue to reflect the transfer of goods or services to customers at an amount that it expects to be entitled to receive in exchange for those goods or services. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. The Company is currently evaluating the impact that the pronouncement will have on the consolidated financial statements.</font></div></div>
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us-gaap Earnings Per Share Basic
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us-gaap Earnings Per Share Diluted
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us-gaap Earnings Per Share Diluted
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us-gaap Effective Income Tax Rate Reconciliation Deductions Qualified Production Activities
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us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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CY2013Q2 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
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us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
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us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
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us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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us-gaap Effective Income Tax Rate Reconciliation Tax Contingencies
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us-gaap Effective Income Tax Rate Reconciliation Tax Contingencies
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CY2014Q2 us-gaap Employee Related Liabilities Current
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us-gaap Excess Tax Benefit From Share Based Compensation Financing Activities
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us-gaap Foreign Currency Transaction Gain Loss Before Tax
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us-gaap Foreign Currency Transaction Gain Loss Before Tax
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us-gaap Income Loss From Equity Method Investments
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us-gaap Income Tax Expense Benefit
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us-gaap Net Income Loss
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us-gaap Net Income Loss Attributable To Redeemable Noncontrolling Interest
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us-gaap Net Income Loss Attributable To Redeemable Noncontrolling Interest
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us-gaap Net Income Loss Available To Common Stockholders Basic
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us-gaap Number Of Reportable Segments
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us-gaap Operating Income Loss
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us-gaap Other Comprehensive Income Loss Tax
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us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Before Reclassification And Tax
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us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Before Reclassification And Tax
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us-gaap Other Comprehensive Income Foreign Currency Translation Gain Loss Arising During Period Tax
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in accordance with GAAP requires management to make estimates, judgments and assumptions that affect the amounts and disclosures reported in the consolidated financial statements and accompanying notes. Management continually re-evaluates its estimates, judgments and assumptions, and management&#8217;s assessments could change. Actual results may differ materially from those estimates.</font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Estimates inherent in the preparation of the consolidated financial statements include accounting for asset impairments, revenue recognition, allowances for doubtful accounts, content rights, depreciation and amortization, business combinations, equity-based compensation, income taxes, other financial instruments, contingencies, and the determination of whether the Company is the primary beneficiary of entities in which it holds variable interests.</font></div></div>
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dei Amendment Flag
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dei Current Fiscal Year End Date
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dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
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dei Document Fiscal Year Focus
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2014
dei Document Period End Date
DocumentPeriodEndDate
2014-06-30
dei Document Type
DocumentType
10-Q
dei Entity Central Index Key
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0001437107
dei Entity Filer Category
EntityFilerCategory
Large Accelerated Filer
dei Entity Registrant Name
EntityRegistrantName
Discovery Communications, Inc.

Files In Submission

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0001437107-14-000048-index-headers.html Edgar Link pending
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disca-20140630.xml Edgar Link completed
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