2013 Q2 Form 10-Q Financial Statement

#000119312513312591 Filed on July 31, 2013

View on sec.gov

Income Statement

Concept 2013 Q2 2012 Q2
Revenue $1.767B $1.846B
YoY Change -4.28% -6.96%
Cost Of Revenue $801.0M $900.0M
YoY Change -11.0% -35.62%
Gross Profit $966.0M $946.0M
YoY Change 2.11% 61.43%
Gross Profit Margin 54.67% 51.25%
Selling, General & Admin $123.0M $149.0M
YoY Change -17.45% 91.03%
% of Gross Profit 12.73% 15.75%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $198.0M $181.0M
YoY Change 9.39% -55.09%
% of Gross Profit 20.5% 19.13%
Operating Expenses $123.0M $149.0M
YoY Change -17.45% 91.03%
Operating Profit $350.0M $332.0M
YoY Change 5.42% -27.83%
Interest Expense -$50.00M -$98.00M
YoY Change -48.98% -10.91%
% of Operating Profit -14.29% -29.52%
Other Income/Expense, Net $2.000M $3.000M
YoY Change -33.33% -250.0%
Pretax Income $302.0M $237.0M
YoY Change 27.43% -31.9%
Income Tax $102.0M $71.00M
% Of Pretax Income 33.77% 29.96%
Net Earnings $142.0M $132.0M
YoY Change 7.58% -41.85%
Net Earnings / Revenue 8.04% 7.15%
Basic Earnings Per Share $0.21 $0.21
Diluted Earnings Per Share $0.21 $0.21
COMMON SHARES
Basic Shares Outstanding 682.9M shares 621.5M shares
Diluted Shares Outstanding 686.9M shares 626.6M shares

Balance Sheet

Concept 2013 Q2 2012 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $824.0M $679.0M
YoY Change 21.35% -41.77%
Cash & Equivalents $824.0M $679.0M
Short-Term Investments
Other Short-Term Assets $83.00M $167.0M
YoY Change -50.3% -64.39%
Inventory $174.0M $159.0M
Prepaid Expenses
Receivables $698.0M $636.0M
Other Receivables $0.00 $0.00
Total Short-Term Assets $1.946B $1.682B
YoY Change 15.7% -40.57%
LONG-TERM ASSETS
Property, Plant & Equipment $16.60B $14.06B
YoY Change 18.09% -31.77%
Goodwill $646.0M $724.0M
YoY Change -10.77%
Intangibles $1.674B
YoY Change
Long-Term Investments $4.135B $1.533B
YoY Change 169.73% 4.78%
Other Assets $657.0M $610.0M
YoY Change 7.7% -24.88%
Total Long-Term Assets $23.71B $18.59B
YoY Change 27.58% -18.75%
TOTAL ASSETS
Total Short-Term Assets $1.946B $1.682B
Total Long-Term Assets $23.71B $18.59B
Total Assets $25.66B $20.27B
YoY Change 26.59% -21.16%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $969.0M $695.0M
YoY Change 39.42% -29.66%
Accrued Expenses $691.0M $599.0M
YoY Change 15.36% -34.54%
Deferred Revenue
YoY Change
Short-Term Debt $710.0M $0.00
YoY Change
Long-Term Debt Due $1.000M $4.000M
YoY Change -75.0% -98.96%
Total Short-Term Liabilities $2.371B $1.298B
YoY Change 82.67% -45.69%
LONG-TERM LIABILITIES
Long-Term Debt $10.36B $9.033B
YoY Change 14.68% 1.19%
Other Long-Term Liabilities $1.774B $1.754B
YoY Change 1.14% -0.96%
Total Long-Term Liabilities $12.13B $10.79B
YoY Change 12.48% 0.83%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.371B $1.298B
Total Long-Term Liabilities $12.13B $10.79B
Total Liabilities $20.96B $17.31B
YoY Change 21.13% -3.8%
SHAREHOLDERS EQUITY
Retained Earnings -$5.863B -$5.607B
YoY Change 4.57%
Common Stock $11.99B $9.966B
YoY Change 20.33%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.041B $1.041B
YoY Change 0.0%
Treasury Stock Shares 35.00M shares 35.00M shares
Shareholders Equity $4.694B $2.961B
YoY Change
Total Liabilities & Shareholders Equity $25.66B $20.27B
YoY Change 26.59% -21.16%

Cashflow Statement

Concept 2013 Q2 2012 Q2
OPERATING ACTIVITIES
Net Income $142.0M $132.0M
YoY Change 7.58% -41.85%
Depreciation, Depletion And Amortization $198.0M $181.0M
YoY Change 9.39% -55.09%
Cash From Operating Activities $668.0M $424.0M
YoY Change 57.55% -51.43%
INVESTING ACTIVITIES
Capital Expenditures -$817.0M -$593.0M
YoY Change 37.77% 4.4%
Acquisitions
YoY Change
Other Investing Activities -$101.0M -$1.806B
YoY Change -94.41% 3373.08%
Cash From Investing Activities -$918.0M -$2.399B
YoY Change -61.73% 286.94%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $887.0M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 372.0M 1.554B
YoY Change -76.06% -15640.0%
NET CHANGE
Cash From Operating Activities 668.0M 424.0M
Cash From Investing Activities -918.0M -2.399B
Cash From Financing Activities 372.0M 1.554B
Net Change In Cash 122.0M -421.0M
YoY Change -128.98% -273.25%
FREE CASH FLOW
Cash From Operating Activities $668.0M $424.0M
Capital Expenditures -$817.0M -$593.0M
Free Cash Flow $1.485B $1.017B
YoY Change 46.02% -29.42%

Facts In Submission

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<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0px;">Note 2. Variable Interest Entities</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;margin-left:0px;">Consolidated VIEs</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:14.4px;">We consolidate the activities of variable interest entities (VIEs) of which we are the primary beneficiary. The primary beneficiary of a VIE is the entity that has both </font><font style="font-family:Times New Roman;font-size:10pt;">(1) </font><font style="font-family:Times New Roman;font-size:10pt;">the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and </font><font style="font-family:Times New Roman;font-size:10pt;">(2) </font><font style="font-family:Times New Roman;font-size:10pt;">the obligation to absorb losses or </font><font style="font-family:Times New Roman;font-size:10pt;">the </font><font style="font-family:Times New Roman;font-size:10pt;">right to receive benefits that could be significant to the VIE. As of June 30,</font><font style="font-family:Times New Roman;font-size:10pt;"> 2013</font><font style="font-family:Times New Roman;font-size:10pt;">, </font><font style="font-family:Times New Roman;font-size:10pt;">we have</font><font style="font-family:Times New Roman;font-size:10pt;"> the following consolidated VIEs:</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'></p><ul><li style="margin-left:36px;list-style:disc;"><font style="font-family:Times New Roman;font-size:10pt;">During the second quarter of 2013, a third party contributed $</font><font style="font-family:Times New Roman;font-size:10pt;">187</font><font style="font-family:Times New Roman;font-size:10pt;"> million to Gulfstar </font><font style="font-family:Times New Roman;font-size:10pt;">One LLC (Gulfstar)</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">in exchange for a </font><font style="font-family:Times New Roman;font-size:10pt;">49</font><font style="font-family:Times New Roman;font-size:10pt;"> percent ownership interest in Gulfstar. This contribution was based on 49 percent of WPZ's estimated cumulative net investment </font><font style="font-family:Times New Roman;font-size:10pt;">to date</font><font style="font-family:Times New Roman;font-size:10pt;">. The $187 million was then distributed to WPZ. </font><font style="font-family:Times New Roman;font-size:10pt;">As a result of this transaction, </font><font style="font-family:Times New Roman;font-size:10pt;">WPZ </font><font style="font-family:Times New Roman;font-size:10pt;">now </font><font style="font-family:Times New Roman;font-size:10pt;">owns a </font><font style="font-family:Times New Roman;font-size:10pt;">51</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">percent interest in </font><font style="font-family:Times New Roman;font-size:10pt;">Gulfstar</font><font style="font-family:Times New Roman;font-size:10pt;">,</font><font style="font-family:Times New Roman;font-size:10pt;"> a subsidiary that, due to certain risk</font><font style="font-family:Times New Roman;font-size:10pt;">-</font><font style="font-family:Times New Roman;font-size:10pt;">sharing provisions in its customer contracts, is a VIE. </font><font style="font-family:Times New Roman;font-size:10pt;">WPZ is the primary beneficiary because it has the power </font><font style="font-family:Times New Roman;font-size:10pt;">to direct the activities</font><font style="font-family:Times New Roman;font-size:10pt;"> that most significantly impact Gulfstar's economic performance. </font><font style="font-family:Times New Roman;font-size:10pt;">W</font><font style="font-family:Times New Roman;font-size:10pt;">PZ</font><font style="font-family:Times New Roman;font-size:10pt;">, as construction agent for Gulfstar, </font><font style="font-family:Times New Roman;font-size:10pt;">is </font><font style="font-family:Times New Roman;font-size:10pt;">design</font><font style="font-family:Times New Roman;font-size:10pt;">ing</font><font style="font-family:Times New Roman;font-size:10pt;">, construct</font><font style="font-family:Times New Roman;font-size:10pt;">ing</font><font style="font-family:Times New Roman;font-size:10pt;">, and install</font><font style="font-family:Times New Roman;font-size:10pt;">ing</font><font style="font-family:Times New Roman;font-size:10pt;"> a proprietary floating-production system, Gulfstar FPS</font><font style="font-family:Times New Roman;font-size:10pt;">TM</font><font style="font-family:Times New Roman;font-size:10pt;">, and associated pipelines which will initially provide production handling and gathering services for the Tubular Bells oil and gas discovery in the eastern deepwater Gulf of Mexico. </font><font style="font-family:Times New Roman;font-size:10pt;">T</font><font style="font-family:Times New Roman;font-size:10pt;">he project is expected to be in service in </font><font style="font-family:Times New Roman;font-size:10pt;">mid-</font><font style="font-family:Times New Roman;font-size:10pt;">2014. 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