2019 Q1 Form 10-Q Financial Statement

#000143710719000026 Filed on May 02, 2019

View on sec.gov

Income Statement

Concept 2019 Q1 2018 Q1
Revenue $2.707B $2.307B
YoY Change 17.34% 43.03%
Cost Of Revenue $930.0M $1.060B
YoY Change -12.26% 74.63%
Gross Profit $1.777B $1.247B
YoY Change 42.5% 23.96%
Gross Profit Margin 65.64% 54.05%
Selling, General & Admin $626.0M $609.0M
YoY Change 2.79% 46.75%
% of Gross Profit 35.23% 48.84%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $372.0M $193.0M
YoY Change 92.75% 141.25%
% of Gross Profit 20.93% 15.48%
Operating Expenses $626.0M $609.0M
YoY Change 2.79% 46.75%
Operating Profit $774.0M $204.0M
YoY Change 279.41% -58.11%
Interest Expense $182.0M $177.0M
YoY Change 2.82% -213.46%
% of Operating Profit 23.51% 86.76%
Other Income/Expense, Net -$27.00M -$22.00M
YoY Change 22.73% 69.23%
Pretax Income $571.0M -$17.00M
YoY Change -3458.82% -106.16%
Income Tax $153.0M -$20.00M
% Of Pretax Income 26.8%
Net Earnings $384.0M -$8.000M
YoY Change -4900.0% -103.72%
Net Earnings / Revenue 14.19% -0.35%
Basic Earnings Per Share
Diluted Earnings Per Share $0.39 -$0.02
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q1 2018 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $745.0M $812.0M
YoY Change -8.25% 204.12%
Cash & Equivalents $745.0M $812.0M
Short-Term Investments
Other Short-Term Assets $655.0M $1.055B
YoY Change -37.91% 38.09%
Inventory
Prepaid Expenses
Receivables $2.625B $2.654B
Other Receivables $0.00 $0.00
Total Short-Term Assets $4.025B $4.521B
YoY Change -10.97% 74.49%
LONG-TERM ASSETS
Property, Plant & Equipment $802.0M $928.0M
YoY Change -13.58% 84.13%
Goodwill $13.04B $13.10B
YoY Change -0.5% 62.21%
Intangibles $9.366B $10.83B
YoY Change -13.48% 627.0%
Long-Term Investments $955.0M $1.231B
YoY Change -22.42% 78.41%
Other Assets $1.161B $728.0M
YoY Change 59.48% 53.91%
Total Long-Term Assets $28.42B $30.14B
YoY Change -5.7% 127.09%
TOTAL ASSETS
Total Short-Term Assets $4.025B $4.521B
Total Long-Term Assets $28.42B $30.14B
Total Assets $32.44B $34.66B
YoY Change -6.39% 118.5%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $314.0M $283.0M
YoY Change 10.95% 41.5%
Accrued Expenses $1.538B $1.730B
YoY Change -11.1% 71.63%
Deferred Revenue $236.0M $299.0M
YoY Change -21.07%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $1.387B $153.0M
YoY Change 806.54% 15.91%
Total Short-Term Liabilities $3.475B $2.465B
YoY Change 40.97% 60.69%
LONG-TERM LIABILITIES
Long-Term Debt $14.96B $19.21B
YoY Change -22.16% 141.08%
Other Long-Term Liabilities $1.573B $972.0M
YoY Change 61.83% 181.74%
Total Long-Term Liabilities $16.53B $972.0M
YoY Change 1600.51% 181.74%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.475B $2.465B
Total Long-Term Liabilities $16.53B $972.0M
Total Liabilities $21.70B $24.65B
YoY Change -11.93% 139.78%
SHAREHOLDERS EQUITY
Retained Earnings $5.663B $4.657B
YoY Change 21.6% -13.47%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $6.737B $6.737B
YoY Change 0.0% 3.71%
Treasury Stock Shares
Shareholders Equity $8.708B $7.889B
YoY Change
Total Liabilities & Shareholders Equity $32.44B $34.66B
YoY Change -6.39% 118.5%

Cashflow Statement

Concept 2019 Q1 2018 Q1
OPERATING ACTIVITIES
Net Income $384.0M -$8.000M
YoY Change -4900.0% -103.72%
Depreciation, Depletion And Amortization $372.0M $193.0M
YoY Change 92.75% 141.25%
Cash From Operating Activities $542.0M $160.0M
YoY Change 238.75% -37.25%
INVESTING ACTIVITIES
Capital Expenditures $44.00M $48.00M
YoY Change -8.33% 2.13%
Acquisitions $22.00M $8.565B
YoY Change -99.74%
Other Investing Activities -$6.000M -$2.000M
YoY Change 200.0% 100.0%
Cash From Investing Activities -$94.00M -$8.675B
YoY Change -98.92% 3772.77%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$652.0M $2.019B
YoY Change -132.29% -2503.57%
NET CHANGE
Cash From Operating Activities $542.0M $160.0M
Cash From Investing Activities -$94.00M -$8.675B
Cash From Financing Activities -$652.0M $2.019B
Net Change In Cash -$241.0M -$6.497B
YoY Change -96.29% 12158.49%
FREE CASH FLOW
Cash From Operating Activities $542.0M $160.0M
Capital Expenditures $44.00M $48.00M
Free Cash Flow $498.0M $112.0M
YoY Change 344.64% -46.15%

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413000000 USD
CY2018Q1 us-gaap Temporary Equity Carrying Amount Including Portion Attributable To Noncontrolling Interests
TemporaryEquityCarryingAmountIncludingPortionAttributableToNoncontrollingInterests
419000000 USD
CY2018Q4 us-gaap Temporary Equity Carrying Amount Including Portion Attributable To Noncontrolling Interests
TemporaryEquityCarryingAmountIncludingPortionAttributableToNoncontrollingInterests
415000000 USD
CY2019Q1 us-gaap Temporary Equity Carrying Amount Including Portion Attributable To Noncontrolling Interests
TemporaryEquityCarryingAmountIncludingPortionAttributableToNoncontrollingInterests
440000000 USD
CY2018Q1 us-gaap Temporary Equity Foreign Currency Translation Adjustments
TemporaryEquityForeignCurrencyTranslationAdjustments
2000000 USD
CY2019Q1 us-gaap Temporary Equity Foreign Currency Translation Adjustments
TemporaryEquityForeignCurrencyTranslationAdjustments
0 USD
CY2018Q1 us-gaap Temporary Equity Net Income
TemporaryEquityNetIncome
6000000 USD
CY2019Q1 us-gaap Temporary Equity Net Income
TemporaryEquityNetIncome
5000000 USD
CY2018Q1 us-gaap Temporary Equity Stock Issued During Period Value New Issues
TemporaryEquityStockIssuedDuringPeriodValueNewIssues
0 USD
CY2019Q1 us-gaap Temporary Equity Stock Issued During Period Value New Issues
TemporaryEquityStockIssuedDuringPeriodValueNewIssues
25000000 USD
CY2018Q4 us-gaap Treasury Stock Value
TreasuryStockValue
6737000000 USD
CY2019Q1 us-gaap Treasury Stock Value
TreasuryStockValue
6737000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
378000000 USD
CY2019Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
438000000 USD
CY2019Q1 us-gaap Unrecognized Tax Benefits Decreases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromCurrentPeriodTaxPositions
99000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
51000000 USD
CY2019Q1 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
66000000 USD
CY2019Q1 us-gaap Variable Interest Entity Entity Maximum Loss Exposure Amount
VariableInterestEntityEntityMaximumLossExposureAmount
590000000 USD
CY2018Q4 us-gaap Variable Interest Entity Nonconsolidated Carrying Amount Assets
VariableInterestEntityNonconsolidatedCarryingAmountAssets
528000000 USD
CY2019Q1 us-gaap Variable Interest Entity Nonconsolidated Carrying Amount Assets
VariableInterestEntityNonconsolidatedCarryingAmountAssets
546000000 USD
CY2019Q1 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<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-weight:bold;">Concentrations Risk</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;">Customers</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 Company has long-term contracts with distributors around the world. For the U.S. Networks segment, approximately </font><font style="font-family:inherit;font-size:10pt;">97%</font><font style="font-family:inherit;font-size:10pt;"> of distribution revenue comes from the Company's largest </font><font style="font-family:inherit;font-size:10pt;">10</font><font style="font-family:inherit;font-size:10pt;"> distributors in the U.S. For the International Networks segment, approximately </font><font style="font-family:inherit;font-size:10pt;">39%</font><font style="font-family:inherit;font-size:10pt;"> of distribution revenue comes from the Company's largest </font><font style="font-family:inherit;font-size:10pt;">10</font><font style="font-family:inherit;font-size:10pt;"> distributors outside of the U.S. Agreements in place with the </font><font style="font-family:inherit;font-size:10pt;">10</font><font style="font-family:inherit;font-size:10pt;"> largest cable and satellite operators in the U.S. Networks and International Networks expire at various times from </font><font style="font-family:inherit;font-size:10pt;">2019</font><font style="font-family:inherit;font-size:10pt;"> through </font><font style="font-family:inherit;font-size:10pt;">2023</font><font style="font-family:inherit;font-size:10pt;">. Although the Company seeks to renew its agreements with its distributors prior to expiration of a contract, a delay in securing a renewal that results in a service disruption, a failure to secure a renewal or a renewal on less favorable terms may have a material adverse effect on the Company&#8217;s financial condition and results of operations. Not only could the Company experience a reduction in distribution revenue, but it could also experience a reduction in advertising revenue, as viewership is impacted by affiliate subscriber levels.</font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">No individual customer accounted for more than </font><font style="font-family:inherit;font-size:10pt;">10%</font><font style="font-family:inherit;font-size:10pt;"> of total consolidated revenues for the </font><font style="font-family:inherit;font-size:10pt;">three months ended March 31, 2019 or 2018</font><font style="font-family:inherit;font-size:10pt;">. As of </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2019</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;">, the Company&#8217;s trade receivables did not represent a significant concentration of credit risk as the customers and markets in which the Company operates are varied and dispersed across many geographic areas.</font></div></div>
CY2019Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:6px;text-align:left;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 as actual results may differ materially from those estimates. These estimates are sometimes complex, sensitive to changes in assumptions and may require fair value determinations using Level 3 fair value measurements. Estimates and judgments 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, share-based compensation, defined benefit plans, 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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