2015 Q2 Form 10-Q Financial Statement

#000143710715000034 Filed on August 05, 2015

View on sec.gov

Income Statement

Concept 2015 Q2 2014 Q2
Revenue $1.654B $1.610B
YoY Change 2.73% 9.75%
Cost Of Revenue $564.0M $515.0M
YoY Change 9.51% 17.85%
Gross Profit $1.090B $1.095B
YoY Change -0.46% 6.31%
Gross Profit Margin 65.9% 68.01%
Selling, General & Admin $430.0M $406.0M
YoY Change 5.91% 3.05%
% of Gross Profit 39.45% 37.08%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $501.0M $430.0M
YoY Change 16.51% 10.54%
% of Gross Profit 45.96% 39.27%
Operating Expenses $430.0M $406.0M
YoY Change 5.91% 3.05%
Operating Profit $557.0M $640.0M
YoY Change -12.97% 16.58%
Interest Expense -$125.0M -$47.00M
YoY Change 165.96% 67.86%
% of Operating Profit -22.44% -7.34%
Other Income/Expense, Net -$59.00M $27.00M
YoY Change -318.52% 42.11%
Pretax Income $428.0M $592.0M
YoY Change -27.7% 23.08%
Income Tax $139.0M $208.0M
% Of Pretax Income 32.48% 35.14%
Net Earnings $286.0M $379.0M
YoY Change -24.54% 26.33%
Net Earnings / Revenue 17.29% 23.54%
Basic Earnings Per Share $0.55
Diluted Earnings Per Share $0.29 $0.54
COMMON SHARES
Basic Shares Outstanding 343.0M shares
Diluted Shares Outstanding 346.0M shares

Balance Sheet

Concept 2015 Q2 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $232.0M $372.0M
YoY Change -37.63% -0.8%
Cash & Equivalents $232.0M $372.0M
Short-Term Investments
Other Short-Term Assets $731.0M $674.0M
YoY Change 8.46% 20.79%
Inventory
Prepaid Expenses
Receivables $1.505B $1.525B
Other Receivables $0.00 $0.00
Total Short-Term Assets $2.468B $2.571B
YoY Change -4.01% 13.51%
LONG-TERM ASSETS
Property, Plant & Equipment $509.0M $538.0M
YoY Change -5.39% 16.96%
Goodwill $8.189B $8.126B
YoY Change 0.78% 11.65%
Intangibles $1.822B $1.924B
YoY Change -5.3% 18.91%
Long-Term Investments $600.0M $828.0M
YoY Change -27.54% -25.07%
Other Assets $120.0M $183.0M
YoY Change -34.43% -2.66%
Total Long-Term Assets $13.26B $13.53B
YoY Change -2.02% 8.95%
TOTAL ASSETS
Total Short-Term Assets $2.468B $2.571B
Total Long-Term Assets $13.26B $13.53B
Total Assets $15.73B $16.11B
YoY Change -2.33% 9.65%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $277.0M $226.0M
YoY Change 22.57% 94.83%
Accrued Expenses $905.0M $945.0M
YoY Change -4.23% 27.53%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $349.0M $1.029B
YoY Change -66.08% 4373.91%
Total Short-Term Liabilities $1.712B $2.360B
YoY Change -27.46% 135.53%
LONG-TERM LIABILITIES
Long-Term Debt $6.856B $6.045B
YoY Change 13.42% -6.35%
Other Long-Term Liabilities $427.0M $299.0M
YoY Change 42.81% 10.74%
Total Long-Term Liabilities $427.0M $299.0M
YoY Change 42.81% 10.74%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.712B $2.360B
Total Long-Term Liabilities $427.0M $299.0M
Total Liabilities $9.489B $9.473B
YoY Change 0.17% 13.0%
SHAREHOLDERS EQUITY
Retained Earnings $4.098B $3.499B
YoY Change 17.12% 48.96%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $5.086B $4.300B
YoY Change 18.28% 56.53%
Treasury Stock Shares
Shareholders Equity $5.485B $6.031B
YoY Change
Total Liabilities & Shareholders Equity $15.73B $16.11B
YoY Change -2.33% 9.65%

Cashflow Statement

Concept 2015 Q2 2014 Q2
OPERATING ACTIVITIES
Net Income $286.0M $379.0M
YoY Change -24.54% 26.33%
Depreciation, Depletion And Amortization $501.0M $430.0M
YoY Change 16.51% 10.54%
Cash From Operating Activities $331.0M $232.0M
YoY Change 42.67% -31.56%
INVESTING ACTIVITIES
Capital Expenditures $18.00M $30.00M
YoY Change -40.0% 7.14%
Acquisitions
YoY Change
Other Investing Activities $70.00M -$245.0M
YoY Change -128.57% -86.28%
Cash From Investing Activities $52.00M -$275.0M
YoY Change -118.91% -84.84%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -499.0M -341.0M
YoY Change 46.33% -32.07%
NET CHANGE
Cash From Operating Activities 331.0M 232.0M
Cash From Investing Activities 52.00M -275.0M
Cash From Financing Activities -499.0M -341.0M
Net Change In Cash -116.0M -384.0M
YoY Change -69.79% -80.58%
FREE CASH FLOW
Cash From Operating Activities $331.0M $232.0M
Capital Expenditures $18.00M $30.00M
Free Cash Flow $313.0M $202.0M
YoY Change 54.95% -35.05%

Facts In Submission

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us-gaap Costs And Expenses
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us-gaap Depreciation Depletion And Amortization
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us-gaap Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
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0 USD
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us-gaap Disposal Group Not Discontinued Operation Gain Loss On Disposal
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us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.03
us-gaap Effective Income Tax Rate Reconciliation Deductions Qualified Production Activities
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us-gaap Effective Income Tax Rate Reconciliation Deductions Qualified Production Activities
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us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
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CY2015Q2 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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0.00
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us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
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0.01
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0.00
us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
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us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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0.02
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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CY2014Q4 us-gaap Employee Related Liabilities Current
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us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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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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CY2014Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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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 Line Of Credit Facility Expiration Date1
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473000000 USD
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us-gaap Net Income Loss
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us-gaap Net Income Loss
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us-gaap Net Income Loss Attributable To Nonredeemable Noncontrolling Interest
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us-gaap Net Income Loss Attributable To Nonredeemable 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 Attributable To Redeemable Noncontrolling Interest
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421000000 USD
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us-gaap Operating Income Loss
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125000000 USD
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us-gaap Other Comprehensive Income Loss Before Tax
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us-gaap Other Comprehensive Income Loss Before Tax
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us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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CY2015Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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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: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;">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 that amends the analysis that a reporting entity performs to determine whether it should consolidate certain legal entities. The changes in this guidance include how related parties and de facto agents are considered in the primary beneficiary determination and the analysis for determining whether a fee paid to a decision maker or service provider is a variable interest. The new standard is 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 stockholders' 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 is 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. In July 2015, the FASB announced that the pronouncement's effective date is deferred to annual reporting periods beginning after December 15, 2017. However, reporting entities may choose to adopt the standard as of the original effective date of annual reporting periods beginning after December 15, 2016. The Company is required to apply the new revenue standard beginning in the first interim period within the year of adoption. The Company is currently evaluating the impact that the pronouncement will have on the consolidated financial statements.</font></div></div>
us-gaap Use Of Estimates
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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 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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