2015 Q1 Form 10-Q Financial Statement

#000143710715000013 Filed on May 05, 2015

View on sec.gov

Income Statement

Concept 2015 Q1 2014 Q4 2014 Q1
Revenue $1.537B $1.676B $1.411B
YoY Change 8.93% 9.04% 22.06%
Cost Of Revenue $565.0M $598.0M $482.0M
YoY Change 17.22% 25.89% 40.94%
Gross Profit $972.0M $1.078B $929.0M
YoY Change 4.63% 1.51% 14.13%
Gross Profit Margin 63.24% 64.32% 65.84%
Selling, General & Admin $400.0M $445.0M $409.0M
YoY Change -2.2% -0.89% 12.05%
% of Gross Profit 41.15% 41.28% 44.03%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $81.00M $560.0M $83.00M
YoY Change -2.41% 31.46% 159.38%
% of Gross Profit 8.33% 51.95% 8.93%
Operating Expenses $400.0M $531.0M $409.0M
YoY Change -2.2% -0.75% 12.05%
Operating Profit $482.0M $476.0M $434.0M
YoY Change 11.06% -8.81% 4.33%
Interest Expense -$109.0M -$92.00M -$79.00M
YoY Change 37.97% -243.75% -38.76%
% of Operating Profit -22.61% -19.33% -18.2%
Other Income/Expense, Net -$19.00M -$20.00M -$17.00M
YoY Change 11.76% -84.25% -154.84%
Pretax Income $375.0M $364.0M $349.0M
YoY Change 7.45% -20.7% -7.43%
Income Tax $125.0M $129.0M $118.0M
% Of Pretax Income 33.33% 35.44% 33.81%
Net Earnings $250.0M $250.0M $230.0M
YoY Change 8.7% -13.49% -0.43%
Net Earnings / Revenue 16.27% 14.92% 16.3%
Basic Earnings Per Share $0.38 $0.33
Diluted Earnings Per Share $0.25 $0.38 $0.33
COMMON SHARES
Basic Shares Outstanding 348.0M shares
Diluted Shares Outstanding 352.0M shares

Balance Sheet

Concept 2015 Q1 2014 Q4 2014 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $321.0M $367.0M $757.0M
YoY Change -57.6% -10.05% -67.92%
Cash & Equivalents $321.0M $367.0M $757.0M
Short-Term Investments
Other Short-Term Assets $717.0M $691.0M $642.0M
YoY Change 11.68% 9.51% 27.13%
Inventory
Prepaid Expenses
Receivables $1.431B $1.433B $1.341B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $2.469B $2.491B $2.740B
YoY Change -9.89% 3.36% -31.72%
LONG-TERM ASSETS
Property, Plant & Equipment $534.0M $554.0M $522.0M
YoY Change 2.3% 7.78% 38.46%
Goodwill $8.152B $8.236B $7.370B
YoY Change 10.61% 12.19% 13.37%
Intangibles $1.855B $1.971B $1.516B
YoY Change 22.36% 25.94% 122.94%
Long-Term Investments $618.0M $644.0M $1.080B
YoY Change -42.78% -40.75% -2.88%
Other Assets $163.0M $101.0M $181.0M
YoY Change -9.94% -43.58% 11.73%
Total Long-Term Assets $13.31B $13.48B $12.57B
YoY Change 5.9% 7.24% 20.78%
TOTAL ASSETS
Total Short-Term Assets $2.469B $2.491B $2.740B
Total Long-Term Assets $13.31B $13.48B $12.57B
Total Assets $15.78B $15.97B $15.31B
YoY Change 3.08% 6.62% 6.17%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $205.0M $225.0M $151.0M
YoY Change 35.76% 59.57% 125.37%
Accrued Expenses $932.0M $1.094B $947.0M
YoY Change -1.58% 10.28% 3.84%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $453.0M $1.107B $18.00M
YoY Change 2416.67% 6411.76% -18.18%
Total Short-Term Liabilities $1.765B $2.604B $1.253B
YoY Change 40.86% 101.24% 13.81%
LONG-TERM LIABILITIES
Long-Term Debt $7.036B $6.002B $6.900B
YoY Change 1.97% -7.41% 7.69%
Other Long-Term Liabilities $406.0M $425.0M $326.0M
YoY Change 24.54% 27.63% 55.24%
Total Long-Term Liabilities $406.0M $425.0M $326.0M
YoY Change 24.54% 27.63% 55.24%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.765B $2.604B $1.253B
Total Long-Term Liabilities $406.0M $425.0M $326.0M
Total Liabilities $9.739B $9.619B $9.093B
YoY Change 7.1% 9.98% 11.63%
SHAREHOLDERS EQUITY
Retained Earnings $3.903B $3.809B $3.123B
YoY Change 24.98% 31.71% 52.19%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $4.963B $4.763B $3.797B
YoY Change 30.71% 34.89% 52.98%
Treasury Stock Shares
Shareholders Equity $5.289B $5.602B $6.180B
YoY Change
Total Liabilities & Shareholders Equity $15.78B $15.97B $15.31B
YoY Change 3.08% 6.62% 6.17%

Cashflow Statement

Concept 2015 Q1 2014 Q4 2014 Q1
OPERATING ACTIVITIES
Net Income $250.0M $250.0M $230.0M
YoY Change 8.7% -13.49% -0.43%
Depreciation, Depletion And Amortization $81.00M $560.0M $83.00M
YoY Change -2.41% 31.46% 159.38%
Cash From Operating Activities $63.00M $425.0M $241.0M
YoY Change -73.86% 19.72% 83.97%
INVESTING ACTIVITIES
Capital Expenditures $34.00M $35.00M $28.00M
YoY Change 21.43% -10.26% 7.69%
Acquisitions $16.00M $17.00M
YoY Change -5.88% -71.67%
Other Investing Activities $6.000M -$4.000M $0.00
YoY Change -42.86% -100.0%
Cash From Investing Activities -$78.00M -$39.00M -$28.00M
YoY Change 178.57% -15.22% -81.33%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $266.0M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 12.00M -365.0M 140.0M
YoY Change -91.43% 7.67% -88.16%
NET CHANGE
Cash From Operating Activities 63.00M 425.0M 241.0M
Cash From Investing Activities -78.00M -39.00M -28.00M
Cash From Financing Activities 12.00M -365.0M 140.0M
Net Change In Cash -3.000M 21.00M 353.0M
YoY Change -100.85% -170.0% -69.65%
FREE CASH FLOW
Cash From Operating Activities $63.00M $425.0M $241.0M
Capital Expenditures $34.00M $35.00M $28.00M
Free Cash Flow $29.00M $390.0M $213.0M
YoY Change -86.38% 23.42% 102.86%

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StockholdersEquityNoteStockSplitConversionRatio1
2
CY2014Q1 us-gaap Temporary Equity Accretion To Redemption Value
TemporaryEquityAccretionToRedemptionValue
-1000000 USD
CY2015Q1 us-gaap Temporary Equity Accretion To Redemption Value
TemporaryEquityAccretionToRedemptionValue
39000000 USD
CY2013Q4 us-gaap Temporary Equity Carrying Amount Including Portion Attributable To Noncontrolling Interests
TemporaryEquityCarryingAmountIncludingPortionAttributableToNoncontrollingInterests
36000000 USD
CY2014Q1 us-gaap Temporary Equity Carrying Amount Including Portion Attributable To Noncontrolling Interests
TemporaryEquityCarryingAmountIncludingPortionAttributableToNoncontrollingInterests
37000000 USD
CY2014Q4 us-gaap Temporary Equity Carrying Amount Including Portion Attributable To Noncontrolling Interests
TemporaryEquityCarryingAmountIncludingPortionAttributableToNoncontrollingInterests
747000000 USD
CY2015Q1 us-gaap Temporary Equity Carrying Amount Including Portion Attributable To Noncontrolling Interests
TemporaryEquityCarryingAmountIncludingPortionAttributableToNoncontrollingInterests
752000000 USD
CY2014Q1 us-gaap Temporary Equity Foreign Currency Translation Adjustments
TemporaryEquityForeignCurrencyTranslationAdjustments
1000000 USD
CY2015Q1 us-gaap Temporary Equity Foreign Currency Translation Adjustments
TemporaryEquityForeignCurrencyTranslationAdjustments
-59000000 USD
CY2014Q1 us-gaap Temporary Equity Net Income
TemporaryEquityNetIncome
1000000 USD
CY2015Q1 us-gaap Temporary Equity Net Income
TemporaryEquityNetIncome
0 USD
CY2014Q1 us-gaap Temporary Equity Other Changes
TemporaryEquityOtherChanges
0 USD
CY2015Q1 us-gaap Temporary Equity Other Changes
TemporaryEquityOtherChanges
-35000000 USD
CY2014Q1 us-gaap Temporary Equity Stock Issued During Period Value New Issues
TemporaryEquityStockIssuedDuringPeriodValueNewIssues
0 USD
CY2015Q1 us-gaap Temporary Equity Stock Issued During Period Value New Issues
TemporaryEquityStockIssuedDuringPeriodValueNewIssues
60000000 USD
CY2014Q4 us-gaap Treasury Stock Value
TreasuryStockValue
4763000000 USD
CY2015Q1 us-gaap Treasury Stock Value
TreasuryStockValue
4963000000 USD
CY2014Q1 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
266000000 USD
CY2015Q1 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
317000000 USD
CY2014Q1 us-gaap Undistributed Earnings Allocated To Participating Securities
UndistributedEarningsAllocatedToParticipatingSecurities
47000000 USD
CY2015Q1 us-gaap Undistributed Earnings Allocated To Participating Securities
UndistributedEarningsAllocatedToParticipatingSecurities
53000000 USD
CY2014Q1 us-gaap Unrealized Gain Loss On Derivatives
UnrealizedGainLossOnDerivatives
0 USD
CY2015Q1 us-gaap Unrealized Gain Loss On Derivatives
UnrealizedGainLossOnDerivatives
-11000000 USD
CY2014Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
176000000 USD
CY2015Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
178000000 USD
CY2014Q4 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Accrued
UnrecognizedTaxBenefitsInterestOnIncomeTaxesAccrued
17000000 USD
CY2015Q1 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Accrued
UnrecognizedTaxBenefitsInterestOnIncomeTaxesAccrued
17000000 USD
CY2015Q1 us-gaap Variable Interest Entity Entity Maximum Loss Exposure Amount
VariableInterestEntityEntityMaximumLossExposureAmount
482000000 USD
CY2015Q1 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%;padding-top:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Accounting and Reporting Pronouncements Not Yet Adopted </font></div><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;">Presentation of Debt Issuance Cost</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 2015, the Financial Accounting Standards Board ("FASB") issued guidance requiring all debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the debt instead of being presented in the balance sheet as a deferred charge. The new standard will be effective for reporting periods beginning after December 15, 2015 and should be adopted retrospectively. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on the consolidated financial statements.</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;">Business Consolidation</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 February 2015, the FASB issued guidance on evaluating whether a reporting entity should consolidate certain legal entities. Specifically, this guidance amends the consolidation guidance for VIEs and general partners' investments in limited partnerships, and modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities. The new standard will be effective for reporting periods beginning after December 15, 2015 and can be adopted either retrospectively or using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. Early adoption is permitted. The Company is currently evaluating the impact that the pronouncement will have on the consolidated financial statements.</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;">Presentation of Financial Statements - Going Concern</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 August 2014, the FASB issued guidance requiring management to </font><font style="font-family:inherit;font-size:10pt;color:#252525;">perform interim and annual assessments regarding conditions or events that raise substantial doubt about the Company's ability to continue as a going concern and to provide related disclosures, if</font><font style="font-family:inherit;font-size:10pt;"> applicable. The new standard will be effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The adoption of this standard is not expected to have a material effect on the consolidated financial statements.</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. In April 2015, the FASB proposed a one-year deferral of the pronouncement's effective date to annual reporting periods beginning after December 15, 2017, and the interim periods within those years. The Company is currently evaluating the impact that the pronouncement will have on the consolidated financial statements.</font></div></div>
CY2015Q1 us-gaap Use Of Estimates
UseOfEstimates
<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 evaluation could change. These estimates are sometimes complex, sensitive to changes in assumptions and require fair value determinations using Level 3 fair value measurements. 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, and contingencies.</font></div></div>

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